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Debt Collector Paid $1.75 Million To Settle FTC Charges

Allied Interstate,  one of the country’s largest debt collection agencies paid $1.75 million for allegedly making repeated phone calls to collect debts from the wrong person or to collect the wrong amount from debtors.

According to the FTC,  Allied demanded payment from people even after they were told by the consumer they did not owe the debt.  Allied reportedly did nothing to  verify the accuracy of the disputed information. The company also allegedly made  harassing phone calls to consumers, using abusive language or calling several times a day for weeks or months. Additionally, Allied made repeated calls to 3rd parties, revealing details of the debts.  All of these actions are in direct violation of Fair Debt Collection Practices Act (FDCPA) and Section 5 of the Federal Trade Commission Act.

In addition to the monetary penalty, the proposed consent decree requires Allied to take specific steps whenever a consumer disputes that he or she owes the debt or the amount of the debt.

If you have been harassed by a debt collector in violation of the Fair Debt Collection Practices Act, please call Los Angeles Consumer Protection Attorney, Todd M. Friedman a call at 877-449-8898 for a free consultation.