Threats of Lawsuit..............
Complaint
B Mac
Country: United States
Received a call from Mr Wilson of this company at my home which he said that he did not know that. He did not tell me he was from a collection agency trying to collect a debt from an inactive non profit from 3 years ago. Told me that I was personally responsible because I set up the account. He gave me 4 hours to settle the account with some arrangement. I told him that this non profit is not active & has no money, he did not care. He said, "so you are refusing to pay" and I said I am not refusing anything but I need to look in to this. He kept implying that I would be sued & am personally responsible for this debt, which I did not sign a personal guarantee, I was authorized to open accounts. I have not been actively involved with this company for years and I feel like I am being exploited, threatened and harassed here. LTD/Mr. Wilson have violated the FTC settlement. How can this company still be in business?
Comments
Debt collectors are required by law to identify themselves as debt collectors.
"Told me that I was personally responsible because I set up the account."
Non-profits are corporations. All corporate business is done by employees acting for the corporation, which is a separate legal entity. The employees are not personally responsible for the debts of a corporation unless they specifically personally guaranteed them. "Setting up the account" has nothing to do with liability for a corporation's debts.
If you didn't sign such a personal guarantee, he lied, and that tells you he will make up anything he thinks might get you to pay. Once you know he will engage in deception, look for additional deception. You will know he is going down that path if he not only claims you are liable, but perhaps even that you signed the contract guaranteeing the account, but refuses to produce that "contract".
"this non profit is not active & has no money"
He already knows that. That is why he is going after you, or anyone else he can convince.
"He said, "so you are refusing to pay" and I said I am not refusing anything but I need to look in to this."
That is a common debt collector talk-off. He would like you to say something that he can twist into claiming you agreed you owe the debt. Why wouldn't you "refuse to pay" a debt you don't owe? Until he produces proof you owe, you "refuse to pay".
"He kept implying that I would be sued & am personally responsible for this debt, which I did not sign a personal guarantee,"
His strongest option is to threaten. The stronger his threats, the more likely all he can do is threaten. He is acting like someone who can only bluff.
"I have not been actively involved with this company for years and I feel like I am being exploited, threatened and harassed here. "
Then send them written notice to cease calling you, and to send you proof that you owe the debt by mail. Send your letter certified, so you have proof of their receipt.
"LTD/Mr. Wilson have violated the FTC settlement"
What settlement? What is the origin of this alleged debt?
Have you contacted FTC, regarding the terms of the settlement?
Although generally FDCPA (and similar state laws) only covers "consumer debt" not business debt, its prohibitions against abusive or deceptive collection might apply to such actions against any consumer not an employee of the business. Otherwise, all debt collectors handling scam collections would just claim its a "business debt".
You know you didn't sign a personal guarantee, you are NOT an employee, and they know it, so their abusive harassment of you is no different from if they abusively harassed the former janitor, or even your neighbor who never heard of this non-profit. It's just another debt collector abusing someone they call, covered by FDCPA and TCPA. If you have further problems, find an attorney with experience in FDCPA, FCRA, and TCPA (Do Not Call) litigation. You might try www.naca.net
Numerous reports of abusive collection, harassment, and attempting to collect on unowed debts. Calls to wrong numbers refusing to cease calling when requested. Debt collector calling relatives claiming to be an "attorney".
Attempts to shift public perception with shill posts.
https://800notes.com/Phone.aspx/1-800-741-2100
Lots of FDCPA lawsuits.
http://dockets.justia.com/search?query=LTD+Financial+Services
This shows up:
http://www.ftc.gov/os/caselist/0523012/index.shtm
"United States of America (for the Federal Trade Commission), Plaintiff, v. LTD Financial Services, L.P., Timothy Feldman, Leonard Pruzansky, John Brewster, and Derrek Davis, Defendants "
http://www.ftc.gov/opa/2007/11/debtcol.shtm
"For Release: November 6, 2007
Nationwide Debt Collector Will Pay $1.3 Million to Settle FTC Charges
A Texas-based debt collection company will pay more than $1.3 million to settle Federal Trade Commission charges that it misled, threatened, and harassed consumers in violation of federal law.
“Debt collectors who get complaints from consumers should not only take notice, but also take action,” said Lydia B. Parnes, Director of the FTC’s Bureau of Consumer Protection. “The message from this case is clear: Either comply with the law or face stiff penalties.”
According to an FTC complaint, in many instances, collectors for LTD Financial Services, L.P., which collects on about 1.25 million consumer accounts per year, violated the FTC Act and the Fair Debt Collection Practices Act by falsely threatening or implying that LTD would garnish consumers’ wages, seize or attach their property, or initiate lawsuits or criminal actions against them if they failed to pay.
LTD collectors, who collect in English and Spanish, allegedly called consumers at their place of work despite knowing it was inconvenient for them to receive calls there, and disclosed the existence of debts to family members, employers, co-workers, and neighbors. They also allegedly harassed consumers and used abusive tactics such as immediately calling back after consumers hung up on them, and sometimes used racial slurs and profanity. According to the complaint, in some instances, front-line supervisors and mid-level managers either participated or were aware of such practices under their supervision but failed to impose sufficient discipline.
Hundreds of consumer complaints against LTD are filed with the FTC, the Houston Better Business Bureau (BBB), various state attorneys general, and the company itself, the FTC’s complaint states, noting that LTD’s response to complaints “is cavalier at best,” that complaints from attorneys general and the BBB alleging egregious law violations frequently are dismissed without significant investigation, and that collectors often go unpunished or merely receive a warning. The complaint also alleges that LTD’s internal compliance program regularly catches collectors violating federal law, but even multiple egregious violations often go without serious punishment, and that senior managers either turn a blind eye to the unlawful acts or fail to exercise the supervision necessary to recognize the problems.
Under the proposed settlement, LTD will pay a $1.375 million civil penalty. In addition, LTD and its owners, Timothy Feldman and Leonard Pruzansky, and its top managers, John Brewster and Derrek Davis, are permanently prohibited from misrepresenting to consumers that nonpayment of a debt will result in garnishment of wages, seizure or attachment of property, or lawsuits. They also are permanently barred from using false, deceptive, or misleading representations in connection with the collection of any debt, communicating with a consumer at any unusual time or place, including their place of employment, or harassing, oppressing, or abusing any person.
The settlement requires the defendants to clearly and conspicuously disclose to consumers that they may stop the company from contacting them about the debt, and to notify consumers that they may contact a special LTD physical address, e-mail address, or toll-free phone number if they have a complaint about the way the company is collecting the debt.
The Commission vote to refer the complaint and consent decree to the Department of Justice for filing was 5-0. On behalf of the FTC, the documents were filed by the Department of Justice in the U.S. District Court for the Southern District of Texas, Houston Division.
..."
They are covered by a consent decree, prohibiting abuse and making false threats, so they may be in violation. Contact FTC.
http://www.ftc.gov/os/caselist/0523012/071105ltdfinancialcmplt.pdf
http://www.ftc.gov/os/caselist/0523012/071105ltdfinancialconsent.pdf
They already paid $1.3 million. Basically, they or their employees violate, they are screwed.