Collection agency agrees to settlement, while consumers may consider debt management plan to avoid dealing with these firms

By Sam Craine on Mar 7th, 2010

A debt collection company has agreed to pay a $1.1 million civil fine after the Federal Trade Commission charged that it violated the law through incorrectly reporting credit information and pushing consumer to pay off debt they may not have owed.

Credit Bureau Collections Services will pay the fine and will be required to follow other requirements of the settlement. Those would include being forbidden from committing further violations and making a claim that a debt is owed without a "reasonable basis."

The FTC's complaint said that the company, along with corporate officers Larry Ebert and Brian Striker, were in violation of the FTC Act, the Fair Debt Collection Practices Act and the Fair Credit Reporting Act.

"According to the FTC's complaint, the company and two of its officers illegally tried to collect invalid debts and reported them to the credit reporting agencies without noting that consumers disputed them," the commission said.

Though some complaints about debt collection companies may involve false debts, other consumers may be facing the all-too-real prospect of having to deal with these companies because of money they actually owe.

One way people may avoid this situation is through a debt management plan, which can help consumer pay what they owe in a timely manner. It may also provide for lower interest rates, which can save people money.

More Debt Management Plan News

Related Resources