FTC Brings First Case Alleging Text Messages Were Used In Illegal Debt Collection Scheme

News

California-based debt collector will pay $1 million dollars to settle Federal Trade Commission charges that the defendants violated federal law.

The FTC, the nation’s consumer protection agency, alleged that Archie Donovan and two companies he controls – National Attorney Collection Services, Inc., and National Attorney Services LLC used English- and Spanish-language text messages and phone calls in which they unlawfully failed to disclose that they were debt collectors.  The FTC charged the defendants with violating both the Fair Debt Collection Practices Act and the FTC Act.

In their text messages, phone calls, and mailings, the defendants also falsely portrayed themselves as law firms – by using the names National Attorney Services, National Attorney Service, National Attorney, and Abogados Nacionales.

Building on their deceptive company name, the defendants falsely threatened to sue consumers for not paying their debts or to garnish their wages.

The FTC also alleged that Donovan and his companies illegally revealed debts to the consumers’ family members, friends and co-workers.

Among other tactics, the defendants used mailing envelopes picturing a large arm shaking money from a consumer who is strung upside down.

The law does not allow debt collectors to disclose publicly someone’s private debts, because doing so could endanger their jobs and reputations.  Mailing envelopes can include only the name and address of the company, and cannot indicate that the consumer may owe a debt.

In addition to the $1 million civil penalty, the settlement requires the defendants to stop sending text messages that do not include the disclosures required by law, and to obtain a consumer’s express consent before contacting them by text message.  The defendants also are barred from falsely claiming to be law firms, and from falsely threatening to sue or take any action – such as seizure of property or garnishment – that they do not actually intend to take.

Here are just a few phone numbers reportedly used by the "National Attorney Services":

 

[The Story]

Comments

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  • +4
    DaFox
    | 1 reply
    Well, at least now they can still use their mailing envelopes.
    Just now it's Uncle Sam shaking the money out of Archie Donovan :)
  • 0
    Joanna
    | 11 replies
    A certain Edward Garcia, professed to be a paralegal...called all my relatives and friend and was saying that they will serve me with documents....harassing words....saying that I have a Mervyn's debt 5!years ago....etc.etc...now I am looking  for pro bono lawyer to help me...exactly the same time last year..it was a JCPENNET Penney debt....and I fought back....and they stopped....the more now that I know,collection laws...
  • +2
    Mercury
    | 15 replies
    Great! But FTC should do more, there're so many junk calls every day.
  • +6
    PA replies to Mercury
    | 9 replies
    Who needs to do something is the telephone companies who basically conspire with these companies and do not seek solutions, maybe half veiled solutions to stop this problem.  They make BILLIONS of dollars and say they spend BILLIONS to upgrade their networks but do little or NOTHING to stop these spammers.
  • +1
    Annoyed replies to Joanna
    | 3 replies
    Check your credit report for the Mervyns debt.  Bankruptcy was filed in 2008.
  • +1
    danbpc
    | 14 replies
    My only comment is that the penalties are not enough to get these bozos to stop.  I Think that after the second settlement any organization or principal officer has for any reason to settle a problem with the government it should be 2x's the prior settlement or two times the proposed settlement if it were a first time settlement which ever is larger.  If there the third settlement, in which some organization settles bad behavior for any reason, including unrelated events in other areas of the country, even if they did not admit that they did bad behavior the penalty should be the companies annual world wide revenue of the company.  The idea is to get them to stop bad behavior
  • +2
    Annoyed replies to danbpc
    | 5 replies
    While I agree with you that the financial penalties should be more severe, the problems will never stop. Because the penalties are never severe enough. While the FCC proudly proclaim $1million penalties, will they collect it? Not likely. The company will simply declare bankruptcy and start over under with the same owners under another name. Even if they do pay it, they get to deduct the fine from their taxes.

    Until the people responsible for these shady businesses face real financial hardship and actual jail time as a result of their actions, things will never change.

    At least we have 800notes.com to help spread the word about scammers like the ones described in the origianl story.
  • +1
    Cyberchic
    | 4 replies
    I was called by 972-715-3200 and left a message that I have 2 illegal cases in my name.  What a joke! These people call and expect you to send them money! Don't! I want to sue them, I have the recorded msg saved.  How do I go about getting them to stop and suing them??
  • +3
    Edward S replies to Cyberchic
    | 2 replies
    Contact them and request a physical mailing address.  (Not a PO Box) for documents to be sent to them.  File a complaint with the BBB, OCR (Office on Civil Rights) used personal information didn't they to harass you, as well as the FTC.  Only strength in numbers with these clowns go away.  I found one here near me that obtained my personal information and were doing similar actions and went in person to this whole in the wall office.  I played the message, and it just so happened the person I was sitting in front of was also the voice on the recording.  Police were called, responded and have a case no pending in local court for 2 counts of misuse of private information ($2500.00 per count) small claims court only goes to that amount. For higher amounts, you need a lawyer and State Court.  Best to you as you reach out to extinguish these vermin who act like they are above the law.
  • +2
    Jacqueline
    | 2 replies
    You may not have the time to do so but try and keep a log of the calls, you need to keep the phone numbers, person's name and company they claim to represent. The more information you keep on file the better off you'll be. The hard part about it is that usually they call from other states not within your state but the company is usually based out of the country. The sad part about it is that other American's are taking these jobs without thinking how would they feel if someone was doing this to them or their family member.

    Even though a few numbers are listed above there are so many other numbers that these people call from. Most people don't have that kind of time to keep logging these calls.
  • 0
    Rosina
    I receive calls after calls on my cell phones. I could not make out the name of the Company and I believe the person's name was Loren. I do not get clear reception where I live. To be harassed over cell phones on collections, are you saying this is illegal? What steps do I take from here. I see they still called after I told them not to call either phone. This is also from another Cell Carrier which I terminated because of service after 8-9 yrs of service! What rights do I have, please help steer me in the right direction, Thank you.
  • +2
    jr23
    | 4 replies
    They should go after the phone and internet providers like they fined UPS for taking packages from online pharmacy's that were selling phony drugs the gov notified UPS that the companys were illegal and UPS
    continued to take the packages so they got a big fine.
    also they need to charge all the employees who make the calls since there conducting and illegal operation
  • 0
    LargeVirus
    it's funny how the legit phone numbers are all T-mobile
  • 0
    toonguy
    has anyone ever heard of Beachsidecash .com? they have a P.O box address in South dakota
  • +1
    John replies to jr23
    | 3 replies
    Very true. If the telephone company faced a fine for providing service to these scam artists they would be more selective on just whom they provide service to.
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