The Federal Trade Commission yesterday announced the launch of Operation Corrupt Collector, a “crackdown” on collection operations that engage in abusive or harassing practices while also attempting to collect on debts that do not exist.
More than 50 state and federal law enforcement partners are participating with the FTC on the initiative.
The FTC announced a number of enforcement actions yesterday. First, it announced the new cases that it filed in South Carolina against National Landmark Logistics and Absolute Financial Services. A judge in South Carolina had lifted the seal on those complaints last month.
The FTC also cited resolutions in three other cases that involved the same type of collection tactics it is trying to root out through the initiative. Those cases were against Global Asset Financial Services Group, Hylan Asset Management, and Campbell Capital.
While those cases had been previously announced, state Attorneys General across the country launched their own actions yesterday, filing lawsuits against collection agencies in Indiana, Ohio, and Arizona.
The FTC also announced the creation of a new online dashboard that offers insights into the complaints filed by consumers with the agency about potentially abusive debt collection actions.
“For many years, we’ve been working with our law enforcement partners to crack down on illegal and abusive debt collectors,” said Andrew Smith, Director of the FTC’s Bureau of Consumer Protection. “At a time when many are under financial stress, our coordinated actions today show that we’re continuing the fight against collectors who threaten people and try to collect debts they don’t owe.”
