Accounts Receivable Management Featured Article

FTC Cracks Down on Fake Debt Collector

October 31, 2012

Debt collectors are the cause of more complaints to the Federal Trade Commission (FTC (News - Alert)) than any other industry.  Many engage in illegal conduct, although most debt collectors are careful to comply with consumer protection laws. Some collectors demand larger payments than the law allows, harass and threaten consumers, disclose debts to consumers’ employers, refuse to verify disputed debts and often reveal the debts to coworkers, family members and friends. Debt collection abuses cause harms that financially vulnerable consumers can ill afford.

In such a case, the FTC cracked down on a California man who partnered with bogus debt collectors in India. After legal proceedings, this man has agreed to settle FTC charges regarding the same. According to the FTC, Varang K. Thaker, American Credit Crunchers, LLC, and Ebeeze, LLC, and his companies conned and intimidated consumers into paying debts that were not owed by them.

In some cases, although the defendants owed loans, these people were not authorized to collect them. Now, after the crackdown by the FTC, the defendants will turn over nearly all of their assets. This amounts to about $170,000, and the FTC has stated that this amount will be utilized for consumer refunds.

Varang K. Thaker joined hands with Indian call centers to make calls to customers who had either enquired about or actually taken a payday loan. They then threatened the victims that they would be arrested or retired from their jobs if they did not pay up.  

Recently, the FTC released its “Facing Facts” staff report, which offers recommendations on best practices for using technology. With many experts agreeing that companies should implement privacy protections from the detection to the authentication process, use of facial recognition technologies is advised in the report. Apart from increasing consumer education about the use of such technology, they also recommend that companies increase the transparency of their data practices, develop security precautions for the information collected.




Edited by Rachel Ramsey

Article comments powered by Disqus

Related Accounts Receivable Management Articles

CSG's Video Billing Initiative keeps Pace with Time Warner's Seasoned Customers

Whether it's an offshoot of wanting to genuinely enhance customer service or whether it's another gimmick to stay alive in a world of cut-throat competition, we'll never know, but no matter what it is, cable companies are coming out with new ways to increase customer loyalty and reduce service cost. Time Warner is going next-generation with its customer care and is now wooing customers with CSG's video billing initiative- SmartVideo. [ Read More ]
10/14/2014

Esker Energizes Direct Energie with Digitized Handling of Vendor Invoices

Document management solutions provider Esker helps DIrect Energie automate accounts payable. [ Read More ]
10/13/2014

Alta Vista Technology Enhances Its Portfolio with Intacct Cloud Financial Applications

Alta Vista Technology adds Intacct cloud-based financial system to its capabilities. [ Read More ]
10/13/2014

Fourth Circuit Court of Appeals Rules for Violation of TCPA

The Telephone Consumer Protection Act was passed in 1991 as an amendment to the Communications Act of 1934. The amendments provide certain protections for consumers and restrictions for solicitors, including: the barring of solicitous calling between the hours of 9 p.m. and 8 a.m. and the requirement that solicitors respect the National Do Not Call Registry. It also prohibits using autodialers in certain situations, and a recent ruling from the Fourth Circuit Court of Appeals ruled that autodial… [ Read More ]
10/13/2014
FREE Accounts Receivable Management enewslettter.

Events

Weekly Live Demo
Contact Center Solutions

Register Today!


Weekly Live Demo
CaaS Small Center

Register Today!