Links in “FTC”

Scam operators running the so-called "Bill Payment Government Assistance Program" targeted distressed borrowers with promises of paying off the consumer's debt for an advance service charge of $900 to $1,100. Their YouTube video purported an endorsement from the president with a recording of him saying "I approve this message." The FTC is seeking to shut the operators down. [8/25/14]

The FTC and CFPB have filed an amicus brief for a case regarding the accurate interpretation of the Fair Debt Collection Practices Act. The agencies argue that the provision requiring a notice to be sent to consumers within five days after initial contact from a debt collector must be provided by each debt collector, not simply the first to make contact. The ruling in this matter could significantly affect policies and procedures for entities throughout the industry.  [8/22/14]

Trade group rebuts New York Times editorial that called for the CFPB and FTC to move "swiftly and aggressively" on subprime auto lending. It labeled the editorial as an unfair attempt to paint the industry as a hotbed of deceptive practices. [8/21/14]

The Federal Trade Commission is opening up for comments on its Telemarketing Sales Rule (TSR) as part of its efforts to review all of the Commission's current regulations.  [8/12/14]

Federal Trade Commission settles with a Florida-based payday lender. According to the complaint, the defendant used consumers’ personal financial information it had collected through its websites on the pretense of helping them to get a loan to withdraw $30 from the bank accounts of tens of thousands of consumers, without authorization and without providing anything of value in return. [7/14/14]

The FTC handed down another ruling against a Houston-based debt collection agency that used deceptive tactics to bully English and Spanish-speaking consumers into paying debts. The agency used false and deceptive methods to collect more than $1.3 million in what they called “convenience fees” and “transaction fees” from consumers who authorized payments over the phone. [6/26/14]

The Federal Trade Commission is looking to expand the technological arsenal that can be used in the battle against illegal phone spammers by challenging DEF CON 22 attendees to build the ultimate “honeypot” to lure in and identify perpetrators of illegal robocalls. [6/17/2014]

A Pennsylvania-based home builder that offers home financing has settled Federal Trade Commission charges that it deceived consumers by advertising low-cost mortgages while hiding fees and not disclosing vital information about the true cost of the mortgages. [6/11/14]

FTC charges California-based DebtPro 123 with deceiving customers. Company promised to settle debts and repair credit, but got direct access to debit their bank accounts and charged customers up to $10K, leaving them in even worse shape than when they started. [6/4]

The Federal Trade Commission hits Consumer Portfolio Services (Irvine, CA) with $5.5 million settlement for violations of the FTC Act and another $2 million in civil penalties for violations of the Fair Debt Collection Practices Act and the Fair Credit Reporting Act. Here's a laundry list of how not to collect debt. [6/4]