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One of the nation's largest consumer debt buyers has agreed to pay $2.5 million to settle FTC charges that it broke the law trying to collect old debts. Asset Acceptance, LLC, buys unpaid debts — often for pennies on the dollar. The debts might be more than a year past due to more than 10, making some too old to be legally enforceable. Asset Acceptance not only didn’t disclose that fact to consumers, but also didn’t tell them that a partial payment could reset the clock on the collector's ability to take legal action. It also didn’t conduct reasonable investigations when debts were disputed, the FTC says. Want to know your rights? Read Time-Barred Debts.
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An operation that allegedly promised people nonexistent sales jobs is banned from marketing any employment products or services under a settlement with the FTC. According to the FTC's complaint, National Sales Group and other defendants posted ads on CareerBuilder.com and other job boards, and had telemarketers tell people — falsely — that the company recruited for Fortune 1000 employers and could get them interviewed and hired. Bad enough that there weren’t any jobs; but the defendants also often charged people more than they had agreed to pay, or charged recurring fees without the applicant’s permission, the FTC alleges. For more on job scams, visit ftc.gov/jobscams.
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A business that allegedly marketed prepaid phone cards to immigrants has agreed to pay $2.32 million to settle FTC charges that the cards didn’t deliver the minutes advertised. In fact, in the FTC’s extensive testing, the cards delivered an average of 45% of advertised minutes. The cards also had hidden fees, like "hang-up fees" and weekly fees, disclosed in mouseprint and vague terms, that could wipe out the value of the card after only one short call, the agency charged. The cards — with names like "Africa Magic," "Hola Amigo," and "Viva Ecuador” — were sold online, and at newsstands, groceries, convenience stores, and kiosks nationwide. Need tips on choosing calling cards? Learn more here.
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A telemarketing operation that allegedly charged people hundreds of dollars for phony promises to provide low-interest credit has had its assets frozen at the FTC’s request. Premier Nationwide Corporation allegedly cold-called people, saying it could consolidate their debt onto a low interest credit card or reduce the rates on their current cards for an up-front fee of $149 to $599. But the up-front fees weren’t legal, and the people who signed on got a list of banks they could apply to on their own, or were told they’d have to pay even more. For many, the promised refunds were denied. For more on dealing with debt, see the FTC’s Debt Relief Services page.
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The FTC has moved to block long-term care pharmacy Omnicare’s bid to buy rival PharMerica, asserting that the deal would lead to higher drug costs for Medicare patients and taxpayers. Each year, about 1.1 billion prescriptions are processed under Medicare Part D on behalf of about 29 million beneficiaries. The FTC charges that this deal would increase Omnicare's already substantial bargaining power by dramatically increasing the number of skilled nursing facilities that receive their long-term care pharmacy services from the company, and making it a "must" for Medicare Part D prescription drug plans.
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"Most consumers don’t know their legal rights with respect to the collection of debts past the statute of limitations. When a collector tells a consumer that she owes money and demands payment, it may create the misleading impression that the collector can sue the consumer in court to collect that debt. This FTC settlement signals that, even with old debt, the prohibitions against deceptive and unfair collection methods apply."
— David Vladeck, Director, Bureau of Consumer Protection
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Time’s up for some companies that targeted payday borrowers and then charged them, without their OK, for worthless programs. Under a settlement with the FTC, Michael Bruce Moneymaker, Daniel de la Cruz, and their companies are paying almost $10 million and are banned from marketing negative-option programs, which charge until the customer cancels.
An operation that allegedly posed as the federal government and tricked people into paying up to $2,500 for immigration forms is permanently barred from the immigration services business, under settlements with the FTC. For more on recognizing scams against immigrants, visit ftc.gov/immigration.
The FTC has alerted marketers of six mobile apps used for background screening that they may be violating the Fair Credit Reporting Act (FCRA). If the apps marketers have reason to believe their background reports are being used for employment screening, housing, credit, or similar purposes, the FTC said, they must comply with FCRA, which was designed to protect the privacy, and ensure the accuracy, of consumer report information.
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IN OTHER NEWS:
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SHARE THIS:
- Is it new love or a scam? Here’s how to spot an online dating scam: http://go.usa.gov/QT9
- No one wants a traffic ticket. But a traffic ticket scam that puts spyware on your computer is even worse. Learn more: http://go.usa.gov/QTX
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