The Federal Trade Commission closed the book on two cases against debt collection operations, which included lifetime bans for all involved and a $4.4 million fine against one of the companies.
A group of companies — National Client Services LLC, also doing business as AFS Legal Services, AFS Services, Account Financial Services, and Account Financial Solutions; National Payment Processing LLC; Omar Smith; and Ernest Smith — were accused of demanding payment from individuals for non-existent payday loans, impersonating law enforcement officials, and threatened to have people arrested for not paying.
The final order bans all of the defendants and impost a $4.4 million civil penalty, which represents how much was collected during the scam. The charges were originally brought last November.
Meanwhile, another group of alleged upstanding companies — Unified Global Group LLC, ARM WNY LLC, Audubon Financial Bureau LLC and Domenico D’Angelo — threatened and harassed individuals and their friends and family members to collect debts. The defendants were also accused of sending mis-represented text messages to lure individuals into contacting the agencies.
The defendants are banned from the industry and a suspended $27 million civil penalty was ordered. The civil penalty is suspended as long as the individuals surrender all of the funds that have been frozen.
Litigation against another defendant in the case is continuing, according to the FTC.
The cases are part of Operation Collection Protection, a joint local/state/federal initiative between regulators and law enforcement agencies to investigate and prosecute individuals for attempting to use deceptive or abusive means to collect debts.
Good Riddence!