Debt collection

The total number of consumer statute lawsuits filed in the Oct. 16-31 period reached 503, a slight increase from 497 in the first half of October and bringing the month's total to 1,000, according to data from U.S. District Courts.

Preferred Financial Solutions Inc., an Indianapolis-based debt settlement company, has paid $175,000 to West Virginia as part of a settlement with the state's attorney general involving its operations.

A federal court entered a judgment of more than $3.6 million against a payment processor and its subsidiary that allegedly debited consumers’ bank accounts illegally on behalf of deceptive telemarketers, the Federal Trade Commission (FTC) announced Friday.

Unicredit America Inc., an Erie, Pa.-based collection agency, collected money from unsuspecting consumers by pretending to hold hearings in a room decorated to look like a courtroom, according to a lawsuit filed Friday against the company in Pennsylvania.

AscendOne Corp., a Columbia, Md.-based debt management business, will pay $4.5 million to settle charges that the company misled consumers about its for-profit status.

Commercial Collection Agency Association (CCAA) members reported a 16.5% decline in the dollar amount of B2B accounts received for collection in the third quarter compared with the year-ago period.

Portfolio Recovery Associates Inc., an accounts receivable management company and debt buyer, reported net income of $18.5 million for the quarter ended September 30, an 83% increase from $10.1 million in the same period a year earlier.

A credit repair operation has agreed to stop making false claims and stop charging upfront fees under a settlement with the Federal Trade Commission.

The Federal Trade Commission told the Equal Employment Opportunity Commission on Wednesday that the Fair Credit Reporting Act (FCRA) imposes requirements on Consumer Reporting Agencies (CRAs) - which include the three major credit bureaus - and on employers that use the information “to ensure that sensitive consumer report information is used with fairness, impartiality and respect for consumers’ privacy.”

An online marketer that falsely claimed ties to Google Inc. has been forced to stop operations as part of a Federal Trade Commission action that charged the defendants with marketing an allegedly bogus work-at-home scheme and charging hidden monthly fees to consumers’ credit card and bank accounts.

Fair Debt Collection Practices Act (FDCPA) lawsuits spiked to 441 in the Sept. 16-30 period, compared to 390 in the first half of September, according to data from U.S. District Courts. The number of consumer statute lawsuits in the second half of the month totaled 481, up from 421 in the prior reporting period. The total includes 59 Fair Credit Reporting Act (FCRA) lawsuits and 26 Truth-in-Lending Act cases.

The Federal Trade Commission wants public comment on a proposed policy statement clarifying when the FTC will take action under the Fair Debt Collection Practices Act and the FTC Act against companies trying to collect the debts of deceased consumers.

A firm that placed charges on the telephone bills of thousands of small businesses and consumers for Internet-related services they never agreed to buy has been ordered permanently shut down by the U.S. District Court for the Northern District of California.

Huntsman Gay, a private equity firm, announced today that it has purchased a majority stake in iQor, a New York-based accounts receivable management company. iQor has more than 21 locations worldwide and 11,000 employees. The firm reported more than $345 million in revenues in 2009. Terms of the deal were not disclosed.

U.S. credit card delinquencies fell in August as the six top issuers reported improved numbers, according to Moody's Investors Service.

New York regulators filed felony criminal charges against the owner of a collection agency that targeted military personnel and harassed active military members and their families.

The passage of the financial reform bill has introduced quite possibly the most sweeping reform of financial regulations since the Great Depression.

An estimated 409 different collection agencies and creditors were sued in the Sept. 1-15 period, down from an estimated 534 sued in the second half of August and 426 sued in the first half of August, according to data from U.S. District Courts.

Editor's Note: Collection agency owner Michelle Janik sent the following letter for publication after reading an earlier statement from a consumer attorney that CollectionsCreditRisk.com published, see story. To comment, contact Darren Waggoner, Editor, CollectionsCreditRisk.com at 815.463.9008 or darren.waggoner@sourcemedia.com.

A California-based mortgage lender and its owner have agreed to settle Federal Trade Commission charges that they illegally charged Hispanic consumers higher prices for mortgage loans than non-Hispanic white consumers.