Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
Court halts collection of allegedly fake payday debts
WASHINGTON (7/2/14)--A U.S. District Court ruling has halted a Georgia-based operation from attempting to collect $3.5 million in phantom payday debts. The ruling was handed down at the request of the Federal Trade Commission (FTC), who charged that John Williams and two companies he controls used deception and threats to collect payday loan debts that consumers did not owe.

The FTC claims that Williams, a resident of Norcross, Ga.; Williams, Scott & Associates LLC; and WSA LLC falsely claimed to be affiliated with federal and state agents, investigators and members of a government fraud task force, as well as pretended to be a law firm. The defendants allegedly told consumers their drivers' licenses were going to be revoked, and that they were criminals facing imminent arrest and imprisonment.

In addition, the FTC alleges many consumers contacted by the defendants had previously submitted contact information while inquiring about a payday loan online, information that was later used by the defendants.

"Many consumers in this case were victimized twice," said Jessica Rich, director of the FTC's Bureau of Consumer Protection. "First when they inquired about payday loans online and their personal information was not properly safeguarded, and later, when they were harassed and intimidated by these defendants, to whom they didn't owe any money."

The FTC alleged that the defendants violated the Federal Trade Commission Act and the Fair Debt Collection Practices Act by telling consumers' family members, employers and co-workers about the debt; failing to identify themselves as debt collectors; using profanity; making repeated inconvenient or prohibited calls; failing to provide information in writing about the debt; and making unauthorized withdrawals from consumers' bank accounts.

The court had previously ordered the defendants' assets frozen to preserve the possibility that they could be used to provide redress to consumers, and appointed a receiver.


RSS





print
News Now LiveWire
About 1 in 5 #CUs offer credit-building loans,@SchenkMike @CUNA vice president of economics and statistics, told @CreditCardsCom
3 hours ago
RT @CUNA: DDoS attacks shorter, intense, more expensive: @VERISIGN HT @newsnowlivewire http://t.co/QiQKIEjK5v
3 hours ago
RT @CUNA: .@CUNACouncils launches new website. Offering site tours to current members. Check it out! http://t.co/YFJA1tKIxn
3 hours ago
.@Discover to support #ApplePay by fall http://t.co/3wDjkOVU7P HT @Forbes
5 hours ago
.@HUDgov requires investors to delay foreclosure for a year and offers a non-profit only pool sale http://t.co/WYzQrTL3QA
7 hours ago