Search Results: FTC

FTC Obtains Preliminary Injunction Against Mortgage Relief Operation

FTC

On May 8, the Federal Trade Commission (“FTC”) announced that the U.S. District Court for the Central District of California granted its request to preliminarily enjoin affiliated California-based debt relief companies from continuing operations, and to freeze their assets. In its complaint, the FTC alleged that the companies violated Section 5(a) of the Federal Trade Commission Act,…

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FDIC Enters Into $20 Million Consent Order With Debt Settlement Entities

On March 28, 2018, the Federal Deposit Insurance Corporation (“FDIC”) annou​nced settlements with a bank and an affiliated lender (“Defendants”) relating to allegations of deceptive lending practices.  According to the FDIC, the Defendants provided, as “debt-settlement products,” loans to borrowers who were heavily indebted, which loans had settlement fees of up…

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FTC and NY AG Convict and Settle For Nearly $50 Million With Debt Collectors

On March 22, 2018, the Federal Trade Commission (FTC), in conjunction with the New York Attorney General (AG), announced that it had entered into settlements with debt collection companies and their operators over allegedly deceptive and unlawful debt collection practices. In a February 2015 complaint filed in the United States District Court for the Western…

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FTC Accuses Student Loan Debt Relief Operation of Deceiving Consumers

Piggy Bank with a Graduation Cap

​On February 7, 2018, the Federal Trade Commission (“FTC”) announced an enforcement action against a student loan debt relief operation, claiming it deceived consumers out of $28 million by falsely promising that their monthly payments would go towards their student loans. In the complaint, filed in the U.S. District Court for the Northern…

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FTC Obtains TRO Temporarily Freezing Assets of Georgia-Based Debt Collection Business

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​On November 8, a federal court in Georgia issued a temporary restraining order against a Georgia-based debt collector, freezing its assets and granting the Federal Trade Commission (“FTC”) immediate access to its business premises. The court granted this relief in response to a complaint filed by the FTC alleging that the…

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FTC Obtains $6.8 Million Judgment Against Two Individuals in "Free" Credit Report Scheme

FTC

​On October 30, the Federal Trade Commission (FTC) announced that it had obtained a stipulated order for a permanent injunction and monetary judgment against two individuals for allegedly using fake rental property ads to lure consumers to visit websites promising “free” credit reports.  When consumers visited those websites, the individuals allegedly deceived them…

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FTC and Illinois AG Settle With "Phantom" Debt Collectors For $47 Million

​On November 1, the Federal Trade Commission (FTC) and Illinois Attorney General’s Office (Illinois AG) announced (here and here) that they had reached a settlement to resolve a joint action brought against affiliated Chicago-based debt collectors that allegedly used false and misleading tactics in attempting to collect on payday or other small-dollar loans. The…

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FTC Obtains $4.1 Million Judgment Against Seller of Fake Payday Loans

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On October 17, 2017, the Federal Trade Commission (FTC) announced​ that it obtained a $4.1 million default judgment from the U.S. District Court for the District of Kansas against a phony debt collection operation that sold lists of fake payday loan debts to debt collectors.  According to the FTC, the operation harassed consumers for debts…

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FTC Secures Summary Judgment Over Alleged Fraudulent Mortgage Relief Scheme

On September 20, the Federal Trade Commission (FTC)  announced that the U.S. District Court for the Central District of California entered summary judgment against two law firms and two individuals for their participation in an allegedly fraudulent mortgage relief scheme. According to the FTC, the law firms misrepresented to consumers that they could obtain monetary recoveries…

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FTC Obtains Temporary Restraining Order Freezing Assets of Debt Collection Operation

​On July 10, 2017, the U.S. District Court for the Middle District of Florida entered a temporary restraining​ order (“TRO”) halting operations and freezing the assets of a debt collection operation, at the request of the Federal Trade Commission (“FTC”)​. The FTC charged the defendant company and individuals with violating Section 5(a)…

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FTC Brings Suit Against Debt Collector for "Phantom Debts"

On June 23, 2017, the Federal Trade Commission (FTC) announced​​ that it has filed a complaint in the U.S. District Court for the Western District of North Carolina against a North Carolina debt collection company and its owner, alleging that the defendants took money from consumers for fake or “phantom” debts they did not owe. According…

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FTC and Florida AG Agree to Nearly $5 Million Settlement With Defendants Pitching "Worthless" Credit Card Interest Rate Reductions

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On June 5, 2017, the Federal Trade Commission (FTC) announced that a federal district court had entered its eighth order against the remaining defendants in an illegal robocall ring in which defendants promised to help consumers lower their credit card interest rates. The FTC, in conjunction with the Florida Office of the Attorney…

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FDIC Announces Settlements With Wisconsin Banks Over Lending Violations

On May 11, 2017, the Federal Deposit Insurance Corporation (FDIC) announced a settlement with a Wisconsin bank and two affiliated institutions, resolving allegations that the three lenders violated Section 5 of the Federal Trade Commission (FTC) Act, which prohibits unfair and deceptive practices.  The lenders allegedly violated this provision by: (1) charging…

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Operation Collection Protection Secures $2 Million Civil Penalty Against President of Debt Collection Company

On April 12, 2017, the Federal Trade Commission (FTC) announced that it had secured a $2 million civil penalty against the president of a debt collection company for violating the Fair Debt Collection Practices Act (FDCPA) in United States v. Commercial Recovery Systems, Inc.—one of over a hundred cases brought…

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