Debt collection

Two senators introduced legislation Thursday to restrict debt settlement companies from collecting fees before a settlement is reached. Under the legislation, consumers would receive detailed upfront disclosures - including a list of all costs and promised services.

An estimated 525 different collection agencies and creditors were sued under consumer statutes, primarily the Fair Debt Collection Practices Act and the Fair Credit Reporting Act, in the first half of April, according to data from U.S. District Court dockets. The number is the same as the total in the second half of March and down slightly from 545 in the first half of March.

A Supreme Court decision yesterday could make it easier for consumers to sue collectors for sending erroneous collection notices.

Two operators of a mortgage modification scam in California were sentenced last week to a year in jail and four years probation and must repay more than $32,000 to three dozen victims - a sum that could increase if more victims come forward.

Many in the collection business have fallen on bad times. For some, it’s the first time they’ve been in this position, and they’re looking to lenders for collaborative solutions to help manage their debt.

The Federal Trade Commission Friday announced it is mailing more than $4 million to consumers identified as victims of an illegal credit card billing scam operated by J.K. Publications, raising the total to more than $16 million since an initial mailing last June.

The Federal Trade Commission charged a payday loan operation with illegally trying to garnish borrowers’ wages and using other illegal collection practices. The FTC seeks to stop these practices and require the operators to surrender improperly collected money so it can be used for consumer refunds.

With higher delinquencies and loan losses, along with tight budgets and more troublesome accounts, it is critical to know how to rank and assign accounts to be worked in collections.

Without a doubt people choose to live in Florida for its climate, beautiful beaches and year-round recreational diversion. But there is another reason why people flock to the state.

NCO Group, the largest collection agency based on revenue, reported an $84.2 million loss for the year ended Dec. 30, 2009 in a filing with the Securities and Exchange Commission.

Tobias Boyland, a principal of nine Western New York collection agencies under investigation for illegal practices, was sentenced today on weapons charges, receiving 15 years in prison and a $1,000 fine.

The telemarketing business will be permanently off limits to a pitchman whom the Federal Trade Commission sued last year for allegedly tricking consumers into paying hundreds of dollars for a credit card that could only be used to buy merchandise from his companies’ Web sites.

Dave and Buster's Holdings Inc., an entertainment and restaurant chain, has settled charges brought by the Federal Trade Commission that the company failed to adequately secure the credit and debit card information of customers, FTC officials said Thursday.

Barrett Burns, president and chief executive at VantageScore Solutions LLC, presented testimony this week before the House Subcommittee on Financial Institutions and Consumer Credit entitled: "Keeping Score on Credit Scores: An Overview of Credit Scores, Credit Reports and Their Impact on Consumers."

The Iowa Senate approved a bill this week to hire a debt collection coordinator with "expert knowledge" of collections and an understanding of the workings of state government. The coordinator would be hired by the governor and confirmed by the Senate for a four-year term.

The Federal Trade Commission on Wednesday testified it has taken steps to follow through on legislation aimed at ensuring consumers' credit reports are accurate, preventing identity theft and giving consumers a better understanding of their credit scores.

Consumers filed lawsuits naming an estimated 545 different collection agencies and creditors during the first half of March, up from 471 in the last two weeks of February, according to data from U.S. District Court complaint dockets.

Lawsuits filed in federal courts involving collection and credit issues surged in the fiscal year ended Sept. 30 as more Americans struggled with foreclosures and consumer debt.

A promoter of credit repair and debt relief services agreed to settle Federal Trade Commission charges that he deceived consumers into paying thousands of dollars based on false promises that he could help fix their credit and debt problems. The $2.5 million settlement will be suspended because of the defendant's inability to pay.

Lawsuits filed in U.S. federal courts involving collection and credit issues surged in the fiscal year ended Sept. 30 compared with the previous year - a jump linked to Americans struggling with foreclosures and consumer debts.