Debt Collection Bullies Permanently Banned

As part of a crackdown on abusive debt-collection practices, The Federal Trade Commission (“FTC”) announced that it has reached a final settlement with Rumson, Bolling & Associates and owner David M. Hynes, II over charges that the company engaged in illegal debt collection practices. The FTC settlement permanently bans the defendants from operating in the debt collection industry. The companies agreed to a $33.8 million judgment, but that judgment was suspended due to the defendants’ inability to pay. Instead, they will pay $700,000. The Van Nuys based company collected debts nationwide, operating under a variety of names, including Forensic Case Management Services, FCMS, Commercial Recovery Solutions, Commercial Investigations, Specialized Recovery, Joseph Steven & Associates, Specialized Debt Recovery, Commercial Receivables Acquisition, Commercial Recovery Authority, and The Forwarding Company. The debt collection agency used profane language, spoke to third parties about consumers’ debt, threatened consumers with physical harm, arrest, garnishment, and even threatened to dig up the bodies of consumers’ deceased relatives for alleged non-payment of funeral bills. The FTC also alleged that the company ripped off its clients by working on a contingency basis but not turning over money recovered to the creditors. In many cases, the defendants collected money for a client, then kept all of the money or more than they were entitled to keep or for legal expenses in filing a lawsuit that would “guarantee” the successful collection of a debt. In many cases, the lawsuits were never filed and the clients never received any money in satisfaction of the debts.