Debt Collection Company Punished in Texas
As an experienced first and third party debt collection agency licensed in over 20 states, we know that many small businesses first try to collect on their own debts. When it’s time to use a debt collection agency, many small business owners don’t take the time to research agencies to make sure that they’re in good standing. It’s important that you perform due diligence research in the beginning and take the time to look into the current behavior of any debt collection company. After all, the debt collection company will ultimately be seen as a representative of you.
VP of Debt Collection Company Fined
On September 21, 2016, the Department of Justice announced that the district court for the Eastern District of Texas entered a permanent injunction and a civil penalty against the Vice President of Commercial Recovery Systems.
Commercial Recovery Systems was investigated by the FTC in 2015 because consumers complained that representatives of the company called debtors and claimed to be representatives of the court and also posing as attorneys. Because of this action, the Vice President of the company was ordered to pay a civil penalty of almost half a million dollars.
The Fair Debt Collection Practices Act forbids harassment and threats. As a result of the lawsuit and ruling, Commercial Recovery Systems’ former Vice President is now banned from the debt collection industry.
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