Description

Debt collectors used them to collect on debts people did not owe

The Federal Trade Commission has obtained a $4.1 million judgment and a ban on handling certain sensitive financial information about consumer debts against an operation that sold lists of fake payday loan debts to debt collectors.

A federal court issued a default judgment granting what the FTC sought in a complaint filed in 2016. The complaint alleged that Joel Jerome Tucker, SQ Capital LLC, JT Holdings Inc. and HPD LLC sold lists of fake payday loan debts naming millions of consumers, which debt collectors then used to demand payment. The lists had extensive personal information, including social security and bank account numbers. As a result, many people were harassed for debts they did not owe, and some were persuaded to pay the fake debts.

Several of the sold lists claimed that the phony loans came from a made-up lender, Castle Peak, or from an online loan provider known as 500FastCash. To add credibility to the fake 500FastCash payday loans, Joel Tucker invoked the name of his brother, Scott A. Tucker, a payday loan vendor who marketed loans under the 500FastCash brand. In a previous FTC case, in October 2016, Scott Tucker was ordered to pay $1.3 billion for deceiving consumers and illegally charging them undisclosed and inflated fees. He was recently found guilty of related criminal charges in the Southern District of New York.

The judgment announced today directs the defendants to pay more than $4.1 million they received from selling phony debt portfolios. It also bans them from handling sensitive debt information, including bank account numbers, credit or debit card numbers, or social security numbers. The order requires the defendants to destroy the personal information they used, and prohibits them from misrepresenting material facts about debts and any product or service.

The U.S. District Court for the District of Kansas denied the defendants request to excuse their default and, at the FTCs request, entered the default judgment against them on September 20, 2017.

The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). Like the FTC on Facebook, follow us on Twitter, read our blogs and subscribe to press releases for the latest FTC news and resources.

Comments
Order by: 
Per page:
 
  • There are no comments yet
   Comment Record a video comment
 
 
 
     
Related Feed Entries
FirstCoin are set to have their FRST altcoin dumped from the LiveCoin exchange, following the revelation the company is under police investigation in “at least 2 countries”. BehindMLM reviewed FirstCoin Club in mid-2017. Based on FirstCoin Club’s business model, we concluded it was little more than another Ponzi points altcoin launch coupled with pyramid recruitment. [Continue reading...] Source: FirstCoin Club under police investigation, reports exchange Source: Behind MLM - S…
37 minutes ago · From Behind MLM - Scams & Reporting
A Visa spokesperson claimed that neither it nor Coinbase were responsible for last week's charging issue seen by the crypto-exchange's customers.Source: Coin Desk - Digital currency
47 minutes ago · From Coin Desk - Digital currency
Action film star Steven Seagal has become the brand ambassador for a controversial cryptocurrency ahead of an initial coin offering (ICO).Source: Coin Desk - Digital currency
47 minutes ago · From Coin Desk - Digital currency
Exuberant investor Gregg Kidd outlines his plans for Uphold, a profitable crypto startup that's largely flown under the radar until now. Source: Coin Desk - Digital currency
47 minutes ago · From Coin Desk - Digital currency
A Visa spokesperson claimed that neither it nor Coinbase were responsible for last week's charging issue seen by the crypto-exchange's customers.Source: Coin Desk - Digital currency
3 hours ago · From Coin Desk - Digital currency
Rate
0 votes
Info
Michael Blair
Time is your GREATEST asset
17.10.2017 (17.10.2017)
7 Views
0 Subscribers
Recommend
Tags