FTC Fines Florida Debt Collector, Then Turns The Other Way
January 29, 2008
A collection agency operating in Florida and Georgia has been ordered by the Federal Trade Commission to cease all collection activities that run afoul of the Fair Debt Collection Practices Act (FDCPA) and pay a judgment of $3.4 million to settle all FTC charges.
Rawlins & Rivera, Inc. and Ryan & Reed, Inc., both of Florida and Georgia, have been ordered by the Federal Trade Commission to cease all collection activities that run afoul of the Fair Debt Collection Practices Act (FDCPA) and pay a judgment of $3.4 million. According to the government, the firms “used misleading dunning letters and abusive telephone calls to falsely threaten that consumers would be sued, their property seized, and their wages garnished if they did not pay the money that the defendants said they owed.” But the larger violations involved collectors representing themselves as attorneys.
In February 2007 the FTC said that the company’s agents were claiming to be attorneys and calling debtors and threatening legal action after “case reviews.” A Florida lawyer whose letterhead was used by the business was also named in the suit.
However, the big fine is full of sound and fury . . . signifying nothing.
The FTC reported it suspended much of the $3.4 million judgment because the firm is unable to pay it. Rawlins may continue to operate as a collection agency.
What would be interesting, however, would be to ask the owners of the collection agency whether they would ever suspend their harassment if a debtor said that he or she could not pay. Somehow, I doubt that.
Double standards abound, apparently.
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