Last week, the FTC filed a complaint in a Texas federal court against Commercial Recovery Systems for threatening consumers that unless they paid their debts, they would be sued or have their wages garnished. The problem? These representations weren't true. As the FTC's press release details:
According to the complaint, since at least 2010, CRS’s debt collectors have deceptively told consumers that unless they pay a debt CRS claims they owe, a debt collection lawsuit will be filed against them. In some cases, consumers are told that such a case has already been filed and will lead to adverse consequences unless the debt is paid.
In addition, the FTC alleges that in many cases, when CRS calls consumers to collect on a debt, its representatives falsely claim or imply that they are lawyers or are calling on behalf of a lawyer, or that they are judicial employees. The complaint alleges in other cases, CRS falsely tells consumers that they will garnish their wages, levy their bank accounts, or seize their property unless they pay the debt. In truth, CRS lacks the authority and intent to take any of these actions.
You can read the entire release here and the complaint here.
