Subscribe to our mailing list

X

FTC Charges Debt Collection Operation Took Consumers’ Money for Phantom Debts

By on November 1, 2017

The Federal Trade Commission has charged a North Carolina debt collection operation with using intimidation and deception to take money from consumers for debts they did not owe, or that the defendants had no right to collect. A federal court temporarily halted the scheme and froze its assets at the request of the FTC, which seeks to end the practices.

According to the FTC, the defendants used a variety of trade names that sound like law firms, such as Lombardo, Daniels & Moss; Barron, Gibson & Phillips; and Cohen, Daniels & Moss, to attempt to collect debts that consumers did not owe. The FTC’s complaint alleges that the defendants’ collectors claimed that consumers were delinquent on payday loans or other debts, and threatened them with arrest or other formal legal action if they did not pay. Their collectors also allegedly called consumers repeatedly and regularly used profanity. Many people paid – more than $2.1 million in total – because they believed the defendants’ false claims or just to stop the harassment.

The FTC also alleges that the defendants illegally disclosed purported debts to third parties, failed to disclose that they were debt collectors calling to collect a debt and that any information consumers provided could be used for that purpose, and failed to send consumers legally required written notices with the debt amount and the creditor’s name, giving consumers an opportunity to dispute the debt.

Lombardo, Daniels & Moss LLC, Dion Barron, and Charles R. Montgomery III are charged with violating the FTC Act and the Fair Debt Collection Practices Act.

The FTC appreciates the assistance provided in this case by the Better Business Bureau of Southern Piedmont and Western North Carolina.

The Commission vote approving the complaint was 2-0. The U.S. District Court for the Western District of North Carolina, Charlotte Division, entered a temporary restraining order against the defendants on August 24, 2017.

READ  FTC Cool on “Hot Degrees” List for Military

NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court.

This article by the FTC was distributed by the Personal Finance Syndication Network.

Last step, fill out the information below or call us for Priority Assistance.

What problems are you having with your report?

Your first name is required. Your first name is required to be at least 2 characters. Your first name cannot be longer than 50 characters.
Your last name is required. Your last name is required to be at least 2 characters. Your last name cannot be longer than 50 characters.
Your email is required.
Your phone is required. Your 10 digit phone number is required.
Your state is required.
Your age is required. Your age must be greater than 18. Your age must be less than 100.

By clicking on the "Contact Me" button above, you consent, acknowledge, and agree to the following: Our Terms of Use and Privacy Policy and to receive electronic communications. We take your privacy seriously. That you are providing express "written" consent for Debt.com or appropriate service provider(s) to call you (including through automated means; e.g. autodialing, text and pre-recorded messaging) via telephone, mobile device (including SMS and MMS - charges may apply), even if your telephone number is currently listed on any internal, corporate, state or federal Do-Not-Call list. Consent is not required as a condition to utilize Debt.com services and you are under no obligation to purchase anything.

By clicking on the “Contact me” button above, you consent, acknowledge, and agree to the following: (1)That you are providing express “written” consent for Lexington Law Firm, Debt.com or appropriate service provider(s) to call you (including through automated means; e.g. autodialing, text and pre-recorded messaging) via telephone, mobile device (including SMS and MMS – charges may apply), or dialed manually, at my residential or cellular number, even if your telephone number is currently listed on any internal, corporate, state or federal Do-Not-Call list; and (2)Lexington Law’s Privacy Policy and Terms of Use and Debt.com’s Terms of Use and Privacy Policy. Consent is not required as a condition to utilize Lexington Law or Debt.com services and you are under no obligation to purchase anything.

About Research Department

Here is where you will find important stories located from around the web which can impact you and your financial life.
%d bloggers like this: