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The debt collection agency is charged with misrepresenting they were a government agency, making false accusations that consumers were committing cheque fraud and threatening consumers with arrest.
The District Court issued an order that stops the illegal conduct, freezes the operations assets and appoints a temporary receiver to take over the business until the hearing.
The organisation used business names such as Federal Recoveries, LLC, Federal Check Processing, Inc, Federal Processing Services, Inc., Nationwide Check Processing, and State Check Processing, Inc.
In addition to threatening consumers with arrest, legal action, imprisonment and seizure of assets, they repeated the misleading claims to consumers’ family members, friends, co-workers, and employers, and revealed the consumers’ debts to these third parties as well.
This article was sourced from http://www.ftc.gov