The debt collection company being held by the Federal Trade Commission as an example of an increased crackdown on abuses in that sector is leaning on FTI Consulting for PR counsel.
Warren, Mich.-based Asset Acceptance Capital Corp., which buys up old consumer debts, agreed to a $2.5M settlement with the FTC, announced Jan. 30, after charges that it used illegal debt-collection practices, providing dubious information to credit agencies, and misrepresenting debts to consumers, among other claims.
“This FTC settlement signals that, even with old debt, the prohibitions against deceptive and unfair collection methods apply,” said David Vladeck, director of the FTC’s Bureau of Consumer Protection, who added that the FTC is “sending a signal that we’ve been long critical about some of the practices of debt buyers.”
Asset Acceptance stressed that the civil penalty does not include any admission to the FTC’s claims.
“We are pleased to have this matter behind us, and to have clarity on the FTC’s policies and expectations of the debt collection industry,” president and CEO Rion Needs said via FTI’s Chicago office. Under the deal, the company has agreed to put consumer protection practices in place, as well.
The AA penalty follows a $2.8M settlement with West Asset Management in March.