According to the FTC, a Houston-based debt collection company called Goldman Schwartz, Inc., used insults, lies, and false threats of imprisonment to collect on payday loans. Under a settlement announced this week, the company’s owner will surrender his assets, approximately $550,000, to pay restitution to consumers who were charged unauthorized fees. The settlement also permanently bans the defendants (the company owner, two company managers, and several corporate entities) from debt collection.
The FTC’s press release explains that “[t]he debt collection operation did business nationwide, collecting primarily on payday loans. In some cases it owned the debt, and in others, it acted as a third-party collector. The operation was charged with multiple violations of both the FTC Act and the Fair Debt Collection Practices Act.”