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BREAKING NEWS  .  .  .  .  . 

FTC fines Allied Interstate Inc. a record setting 1.75 million.

Allied Interstate Inc. was fined 1.75M for violation of the FDCPA and Section 5 of the Federal Trade Commission Act when it made improper harassing phone calls to consumers, used abusive language or called many times a day for weeks or months, sometimes hanging up when the calls were answered. Allied also made repeat calls to third parties seeking to locate a consumer, revealed alleged debts to third parties without the consumers’ consent or court permission, and threatened legal action against consumers it did not intend to take. This settlement is the second largest civil penalty obtained by the FTC in a debt collection case. 

Read the Complaint, Consent Decree, Reasons for Settlement

We can't help but wonder why the FTC did not ban Allied's use of autodialers as it is common knowledge Allied uses autodialers in direct violation of the Telephone Consumer Protection Act.  Had they done so it may have put this company out of business once and for all!  
 
               
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FTC Rule goes into effect October 27, 2010 Prohibiting Debt Relief Companies From Collecting Advance Fees

Starting October 27, 2010 consumers trying to settle their debts will be protected by a new rule that prohibits companies that sell debt relief services over the telephone from charging fees before settling or reducing a customer’s credit card or other unsecured debt.

The new advance fee ban specifies that fees for debt relief services may not be collected until:

  • the debt relief service successfully settles or changes the terms of at least one of the consumer’s debts;

  • there is a settlement agreement, debt management plan, or other
    agreement between the consumer and the creditor that the consumer has agreed to; and

  • the consumer has made at least one payment to the creditor as a result of the agreement negotiated by the debt relief provider.

We can't help but wonder why the FTC did not include a provision that requires debt settlement companies to advise consumers that any debts they settle may result in a substantial tax liability for the consumer if a creditor files a 1099 against them for the difference between the original debt & the amount of the settlement.

               
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October 2010.  What's up with Bank of America?    Customers who request their debit/credit cards or important documents be mailed to their local branch are being told NO due to BoA's new security procedures.  It appears as though someone at BoA holds the belief that a mailbox that sets by the roadside where anyone can grab your new debit/credit card in the blink of an eye  is more secure than their own bank vaults.    

   
         
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