Debt Collectors, Luebke Baker and Associates have reached a proposed settlement with the Federal Trade Commission, (FTC) following charges that they illegally harassed consumers to pay for bogus magazine subscriptions.

According to the FTC, the  defendants knew, or should have known, that many of magazine debts were invalid.   The proposed settlement order, bars Luebke Baker and Associates, Inc., from representing that a consumer owes a debt without having a reasonable basis to do so. Additionally, it also requires the defendants to conduct a reasonable investigation when a consumer disputes a debt.  When the defendants attempt to collect debts, they must provide consumers with disclosures about their rights under the Fair Debt Collection Practices Act, (FDCPA).

Luebke Baker allegedly collected on debts for magazine subscriptions despite the fact that the FTC had successfully sued Cross Media Marketing (CMM)., the company that originally sold the magazine subscriptions for deceptive marketing.  The defendants were notified of a federal court order against CMM.  that placed special requirements on anyone attempting to collect payment for these magazine subscriptions.  However, the FTC  alleges that Luebke  ignored these requirements and repeatedly told consumers the debts were due and payable.

The proposed settlement imposes monetary judgments totaling $3.1 million – $2.3 million in civil penalties for Fair Debt Collection Practices Act violations, $730,000 in disgorgement for collecting Cross Media Marketing Corp. accounts in violation of the FTC Act.

If you have been the victim of  debt collector who are  violating the Fair Debt Collection Practice Act, you may be entitled to compensation.    Please give Los Angeles Debtors’ Attorney a call at 877-449-8898 for a free consultation.