A trio of individuals and the companies they operated have been banned from the collection industry for life as part of a settlement reached with the Federal Trade Commission.
The defendants — Lamar Snow, Global Processing Solutions LLC, Intrinsic Solutions LLC, North Center Collections Inc and Diverse Financial Enterprises Inc., Jahaan McDuffie, Capital Security Investments LLC and American Credit Adjusters LLC, and Glentis Wallace, also known as Glen Wallace — would accuse the individuals of committing a crime and threatening that they would be put into jail if they did not make payments on their outstanding debts. In many cases, the debts had already been paid or were non-existent, according to the FTC.
The defendants were also accused of illegally contacting the employers and other third parties associated with individuals, and failing to make the necessary disclosures required by law when collecting on a debt.
Under the settlement, a $3.4 million judgment was imposed on the defendants, much of which is being suspended because of an inability to repay the amount. The judgment amount represents the amount that the defendants obtained through their alleged scheme, which operated for nearly three years. They were charged with violating the Fair Debt Collection Practices Act and the FTC Act.
The defendants even had a rebuttal for individuals who requested paperwork or verification of a debt.
The rebuttal stated that the information being requested bu the individual would only come out in an 180/80 hearing, likely referring to a New York Criminal Procedure , which concerns a detainee’s right where the State has failed to commence a timely hearing on a felony complaint. The defendants called the 180/80 hearing the “disclosure” hearing, saying the individual’s attorney “can request all documentation to be presented.” The individuals were told that the hearing would include “court & attorney fees as well.”
Along with forfeiting the money in a number of bank accounts, the defendants are also repaying about $130,000 in cash and selling property in their name.
