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

Clayco Selects DataServ to Automate, Streamline AP Process

Clayco Inc., a full-service real estate, architecture, engineering, design-build and construction firm, has selected DataServ for accounts payable (AP) automation. [ Read More ]
10/24/2014

MRI Software Partners with Hunter Warfield

MRI Software, a company that offers property management software solutions, recently announced that Hunter Warfield, a revenue recovery agency for the multifamily industry, has joined MRI Partner Connect program. Hunter Warfield is the first MRI Partner in the debt collections industry. Being the newest member of MRI Partner Connect program, Hunter Warfield will be able to offer MRI's products and solutions to its clients. [ Read More ]
10/21/2014

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
FREE Accounts Receivable Management enewslettter.

Events

Weekly Live Demo
Contact Center Solutions

Register Today!


Weekly Live Demo
CaaS Small Center

Register Today!