: Setting the debt parking brake lfair November 30, 2020 | 12:14PM Setting the debt parking brake By Lesley Fair What are the biggest risks of parking? A dinged door? A bruised bumper? For consumers victimized by the pernicious practice of debt parking, the impact on their financial health can be devastating. And if you’re a debt collector who engages in debt parking, an FTC settlement with Midwest Recovery Systems suggests you could face law enforcement action for violations of the FTC Act, the Fair Debt Collection Practices Act, and the Fair Credit Reporting Act. Just what is debt parking? It’s the practice of placing purported debts on consumers’ credit reports without first attempting to communicate with the consumer about the debt. Some call it “passive debt collection,” but there’s nothing passive about the injury it can inflict. Consumers often don’t learn about it until a mortgage company, prospective employer, or other decision maker pulls their credit report and spots what appears to be an unpaid deb[...]
: We can’t go for that (no can do) lfair July 17, 2017 | 11:38AM We can’t go for that (no can do) By Lesley Fair Of course, phantom debt collection – the practice of pressuring people to pay “debts” they don’t owe – harms consumers. But as an FTC complaint demonstrates, when phantom debt collectors strike, they could affect your company, too. According to the FTC , a Florida-based outfit engaged in a scheme to defraud consumers through the collection of debts people didn’t actually owe or the company didn’t have the authority to collect. The complaint charges that the defendants – Hardco Holding Group, S & H Financial Group, Dequan M. Sicard, and Daryl M. Hall (no, not that Daryl Hall) – violated the FTC Act and Fair Debt Collection Practices Act. When contacting consumers, in many instances the defendants allegedly impersonated attorneys and threatened to have people thrown in jail if they didn’t pay up on delinquent payday loans – loans, remember, that many consumers didn’t take out in the first place and de[...]
: FTC recaps consumer complaint data for 2017: Who’s on the list? lfair March 1, 2018 | 5:17PM FTC recaps consumer complaint data for 2017: Who’s on the list? By Lesley Fair Once bitten, twice shy. That fundamental principle of human behavior is why reputable businesses that work hard to earn consumers’ confidence should support the FTC’s ongoing efforts to fight fraud. According to the FTC’s 2017 Consumer Sentinel Data Book , consumers reported losing a total of $905 million to fraud last year. That’s close to a billion bucks people won’t be able to spend on legitimate products and services from credible companies. That figure is up $63 million from last year, although the total number of reports received from consumers is down from 2.98 million in 2016 to 2.68 million in 2017. Topping the list that no industry wants to be on is debt collection, making up 23% of the total number of complaints. But there are two caveats: 1) that number is down from 2016; and 2) the high number of debt collection reports was du[...]