FTC reaches $1.7 million settlement with mortgage relief scam defendant

On February 23, 2017, the Federal Trade Commission (FTC) issued a press release announcing that it had entered into a stipulated order with a defendant in an alleged mortgage relief scam.

The defendant, Gabriel Stewart was the last of six defendants to resolve charges brought by the FTC in July 2014. The FTC alleged that the defendants were involved in a mortgage relief scam that “preyed upon distressed homeowners,” including elderly consumers.

What debt collectors can learn from the FTC settlement with GC Services

what debt collectors can learn from FTC settlementLast week, we wrote about the settlement agreement between the FTC and debt collector GC Services Limited Partnership. In most circles, the $700,000 civil money penalty would be the most significant aspect of the settlement. In our opinion, however, the most noteworthy and valuable information appears in the sections of the consent order that prohibit GC from engaging in specific collection practices and in the detailed descriptions that lay out how GC must perform certain collection activities.

Debt collector to pay $700,000 in settlement with FTC

On February 14, 2017, the FTC issued a press release announcing that it had reached a settlement agreement with GC Services Limited Partnership to resolve allegations that GC used “unlawful tactics to collect on federal student loans and other debts.” Under the settlement agreement, GC will pay a $700,000 civil money penalty.

GC is a third-party debt collector that focuses on collection of federal student loans and other types of debt. GC is headquartered in Houston, Texas.

FTC and Florida AG fine and ban student loan debt relief scammers

On January 24, the FTC issued a press release announcing that it had resolved charges brought by the FTC and the Florida Attorney General’s Office against operators of an alleged student debt relief and credit repair scam.

The settlement resolves allegations that the operators violated the Federal Trade Commission Act (FTC Act), Telemarketing and Consumer Fraud and Abuse Prevention Act (Telemarketing Act), Telemarketing Sales Rule (TSR), Credit Repair Organizations Act (CROA), and the Florida Deceptive and Unfair Trade Practices Act (FDUTPA).