Debt Collectors Settle $800,000 Charges

The Federal Trade Commission (“FTC”) announced this week that a debt buyer and a law collection firm have agreed to pay nearly $800,000 to settle charges that they misled consumers into paying unnecessary fees and falsely threatened them with lawsuits. According to the complaint, Security Credit Services, LLC bought consumer debt accounts and contracted with Jacob Law Group, PLLC to collect on them. The FTC alleges that Jacob Law Group called consumers nationwide and pressured them for immediate payment on debts, including a fee for payments authorized by telephone. Further, the defendants neglected to inform consumers that no fees were charged to those who paid by mail or online.