From Around the Web

Closing time for fake debt collector

get out of debt

It’s fine to play “let’s pretend” when you’re young; you can be an astronaut today and an inventor tomorrow. But grown-ups who pretend to be debt collectors and lie to get peoples’ money are headed for trouble.

At the request of the FTC and the Illinois Attorney General, a federal court has shut down a network of businesses and operators that falsely claimed to be debt collectors collecting real payday loan debts. The FTC said that the operations — called Stark Law, Stark Recovery, Capital Harris Miller & Associates and other names — had no authority to collect the debts they called about. And yet, says the FTC, they relentlessly threatened and harassed people, and got millions of dollars in un-deserved payments.

According to the FTC, the companies called people who had applied for payday or other short-term loans, and then claimed their loans were delinquent. The companies intimidated people with threats of lawsuits, or having them charged with “defrauding a financial institution” for passing bad checks. For a time, the defendants even posed as a law firm, claiming they could sue people and get judgments against them. The companies called people repeatedly, and called their friends, relatives and employers, told lies — and generally made peoples’ lives miserable. Many people paid because they were worried about the consequences of not paying or just wanted the harassment to stop.

 You have rights if a debt collector calls. Debt collectors aren’t allowed to harass you, make false statements, or use other unfair practices. If someone harasses you about a debt or threatens to have you arrested, there’s a good chance he’s a fake. This video shows how you can deal with debt collectors.

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

About the author

Research Department

Here is where you will find important stories located from around the web which can impact you and your financial life.

Leave a Comment

Scroll to Top