Nationwide debt collector settles CFPB charges

This story appeared in Bank Digest.                                   

Financial Credit Service, Inc., an Illinois-based debt collector that engages in collections across the nation under the name Asset Recovery Associates, Inc., has agreed to settle Consumer Financial Protection Bureau charges that its collection tactics violated the Fair Debt Collection Practices Act and Consumer Financial Protection Act. According to the Bureau, the company threatened to sue consumers, have them arrested, garnish their wages, or place liens on their homes even though it did not intend to do so. The company also told consumers that the debts would harm their credit ratings, even thought it did not make reports to consumer reporting agencies. Additionally, the company misrepresented that employees were attorneys, the CFPB said.

Under the settlement agreement, the company will pay a $200,000 civil penalty and at least $36,800 in restitution to victimized consumers.