Business That Sold Fake Pay Day Loan Debts To Collectors Need To Pay

Business That Sold Fake Pay Day Loan Debts To Collectors Need To Pay

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At the time of October 2017, Consumerist isn’t any longer creating content that is new but please feel free to search through our archives. Right Here there is 12 years well well worth of articles on sets from how to prevent dodgy scams to composing a successful issue page.

Business That Sold Fake Cash Advance Debts To Collectors Must Pay $4.1M

We’ve heard it before: a business collection agencies company involved in a debt that is“phantom by which they attempt to entice naive individuals into having to pay debts they don’t actually owe. While federal regulators have actually cracked down on these unscrupulous businesses within the past, they have been now switching their focus on the businesses information that is providing these expected debts. The Federal Trade Commission today ordered one such data company to pay $4.1 million to that end.

The FTC announced today so it had obtained a $4.1 million judgment [PDF] against a procedure that sold — for millions of bucks — lists of fake cash advance debts to collectors, whom then utilized the information and knowledge to gather debts that are unowed.

The information sold by SQ Capital, JT Holdings, and HPD LLC did not actually contain accurate information while it’s not uncommon for debt collectors to purchase portfolios of consumer debts for pennies on the dollar from third-party debt sellers.

Based on the FTC’s grievance [PDF] filed a year ago, starting in July 2014, the firms — along side operator Joel Jerome Tucker — started promoting and attempting to sell fake financial obligation portfolios that purported to determine clients that has defaulted on payday advances.

An air of legitimacy, the portfolios claimed that some of the loans were issued by fictitious lender “Castle Peak” or online lender 500FastCash in order to give the lists. (more…)

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