DBA International Supports FTC Enforcement Actions
FOR IMMEDIATE RELEASE
Rubinger Communications Solutions
Sacramento, CA, April 16, 2012 – DBA International, the voice of the debt buying industry, supports the recent enforcement actions by the Federal Trade Commission (FTC) to shut down and freeze the assets of a company accused of fraudulently collecting more than $5.2 million in payday loan debts from consumers.
The FTC charged the owner and the two companies he controls with violating the FTC Act and the Fair Debt Collection Practices Act by pretending to be law enforcement agents or representatives of fake government agencies, threatening consumers with arrest, harassing them with frequent calls, contacting their neighbors and using profane language. Calls were originated from a call center in India, which made tracking and enforcement difficult.
This case highlights the kind of illegal tactics a few companies employ that give the entire industry a black eye, and is the reason why DBA thoroughly vets companies applying for DBA membership and requires all members to follow DBA’s Code of Ethics.
DBA supports legal and regulatory actions against companies that engage in fraudulent behavior and applauds the FTC for targeting companies like these that prey on consumers.
Demonstrating our commitment to both legal and ethical business practices, DBA has created a Debt Buyer Certification Task Force that will present its findings and recommendations to DBA’s Board of Directors later this year. The Task Force will work with representatives of the debt buying industry, credit grantors/issuers, government agencies and other interested parties to develop a comprehensive certification program.
Certification is a priority for DBA as we strive toward improved educational and operational standards within the industry. Additionally, DBA will continue to support enforcement actions against companies that use illegal tactics to collect money they are not legally entitled to collect.
About DBA International
DBA International is the trade association and voice for the debt buying industry. DBA sets ethical and business conduct standards for the industry. Debt buyers are financial institutions that purchase uncollected accounts from originating lenders for less than the face value of the debt. Debt buyers are therefore able to settle debts with consumers at deep discounts. This allows a consumer to improve their credit record and, by doing so, to increase their access to, and reduce their cost of credit.