FTC: $1M settlement in debt collection scam - FOX 8, WVUE, fox8live.com, weather, app, news, saints

FTC: $1M settlement in debt collection scam

Courtesy: Federal Trade Commission Courtesy: Federal Trade Commission

WASHINGTON (AP) - A debt collection operation that involved text messages and collectors allegedly posing as attorneys has led to a $1 million settlement with the federal government.

The Federal Trade Commission said Wednesday that a debt collector in Glendale, Calif., agreed to pay the civil penalty in order to settle FTC charges. The commission alleged that Archie Donovan and two companies he controls - National Attorney Collection Services, Inc. and National Attorney Services LLC - used text messages and phone calls, and failed to disclose that they were debt collectors, which is against the law.

In their messages, the collectors used their company names or variations of it to lead consumers to believe an attorney was contacting them, the FTC said. They also falsely threatened to sue consumers for not paying debts or to garnish their wages, and they illegally revealed debts to the consumers' family members, friends and co-workers, said the commission.

A call to Donovan seeking comment was not immediately returned.

A mailing from Donovan and his companies, the FTC said, used envelopes with a picture of a large arm shaking money from a consumer who is depicted upside down, with cash falling from his pockets. According to the commission, mailing envelopes can only include the name and address of the company and may not indicate that the consumer may owe a debt.

As part of the settlement, Donovan and his companies are barred from sending texts that do not include disclosures about their identity. They also need a consumer's consent before they can send them a text.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

  • Local NewsMore>>

  • Woman and child shot in early morning double shooting, suspect arrested

    Two people are injured and a suspect is in custody following a double shooting in the Seventh Ward, according to the New Orleans Police Department. 

    more>>

    Two people are injured and a suspect is in custody following a double shooting in the Seventh Ward, according to the New Orleans Police Department. 

    more>>
  • Police find 1 dead after shooting in St. Roch neighborhood

    Police find 1 dead after shooting in St. Roch neighborhood

    The New Orleans Police Department is investigating an early morning shooting in the St. Roch Neighborhood. The shooting was reported at the intersection of North Prieur and Franklin Avenue. Initial reports say one victim was found dead at the location. NOPD is investigating the incident and has not provided any additional information at this time. 

    more>>

    The New Orleans Police Department is investigating an early morning shooting in the St. Roch Neighborhood. The shooting was reported at the intersection of North Prieur and Franklin Avenue. Initial reports say one victim was found dead at the location. NOPD is investigating the incident and has not provided any additional information at this time. 

    more>>
  • Pelicans blow out the Blazers 119-102, take 3-0 series lead

    Pelicans blow out the Blazers 119-102, take 3-0 series lead

    Anthony Davis racked up 28 points, 11 rebounds, and 2 blocks. Source: Nola.comAnthony Davis racked up 28 points, 11 rebounds, and 2 blocks. Source: Nola.com

    The Pelicans dominated the Blazers from start-to-finish, taking a 3-0 series lead, with a commanding 119-102 victory. Nikola Mirotic scored a career playoff-best 30 points. Mirotic racked up 14 points in the first quarter alone. "We just play the right way on offense, we just trust each other," said Anthony Davis. Nikola Mirotic pours in 14 PTS in the 1st quarter!@PelicansNBA lead 36-20 after one on @NBATV #DoItBigger pic.twitter.com/8JnMsgvp63 — NBA (@NBA) April ...

    more>>

    The Pelicans dominated the Blazers from start-to-finish, taking a 3-0 series lead, with a commanding 119-102 victory. Nikola Mirotic scored a career playoff-best 30 points. Mirotic racked up 14 points in the first quarter alone. "We just play the right way on offense, we just trust each other," said Anthony Davis. Nikola Mirotic pours in 14 PTS in the 1st quarter!@PelicansNBA lead 36-20 after one on @NBATV #DoItBigger pic.twitter.com/8JnMsgvp63 — NBA (@NBA) April ...

    more>>
  • Trending StoriesTrending StoriesMore>>

  • Police say teen who searched for missing pal was his killer

    Police say teen who searched for missing pal was his killer

    Thursday, April 19 2018 4:56 PM EDT2018-04-19 20:56:14 GMT
    Friday, April 20 2018 3:01 AM EDT2018-04-20 07:01:15 GMT
    (AP Photo/Mike Balsamo). Los Angeles County sheriff's Lt. John Corina, left, speaks next to Deputy Joana Warren outside of the sheriff's homicide bureau office in Monterey Park, Calif., Thursday, April 19, 2018. Los Angeles County sheriff's investigato...(AP Photo/Mike Balsamo). Los Angeles County sheriff's Lt. John Corina, left, speaks next to Deputy Joana Warren outside of the sheriff's homicide bureau office in Monterey Park, Calif., Thursday, April 19, 2018. Los Angeles County sheriff's investigato...
    Los Angeles County sheriff's investigators say a 16-year-old who was part of a search party looking for a missing high school sports star led the group to discover the boy's body but investigators suspect he was...more>>
    Los Angeles County sheriff's investigators say a 16-year-old who was part of a search party looking for a missing high school sports star led the group to discover the boy's body but investigators suspect he was the person who fatally stabbed him.more>>
Powered by Frankly