Texas Court Hits Debt Collector With $2M Penalty In FTC Suit

By Allison Grande (April 24, 2017, 9:22 PM EDT) -- A Texas federal judge has ordered the president of a debt collection service that was sued by the Federal Trade Commission to pay $2 million for violating the Fair Debt Collection Practices Act by falsely threatening debtors with lawsuits and other punitive measures, the FTC announced Monday. 

The civil penalty judgment order against Commercial Recovery Systems Inc. President Timothy Ford brings to a close a suit filed by the U.S. Department of Justice on the FTC's behalf alleging that the debt collection service, Ford and former Vice President David Devany skirted the FDCPA by falsely claiming that the company would sue...

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