The Consumer Financial Protection Bureau (CFPB) settled with Asset Recovery Associates, Inc. (ARA). ARA, also known as Financial Credit Service, Inc., collects debts from consumers throughout the U.S. CFPB found that ARA violated the Fair Debt Collection Practices Act by threatening to sue or arrest consumers, even though it did not intend to do so. ARA also falsely represented to consumers that company employees were attorneys, threatened to garnish consumers’ wages or place liens on their homes, even though it did not intend to do so, and represented that consumers’ credit reports would be negatively affected if they did not pay, even though ARA does not report consumer debts. The CFPB also stated that ARA also violated the Consumer Financial Protection Act of 2010. ARA will pay at least $36,000 in restitution to affected consumers and a $200,000 civil penalty to the CFPB. ARA is also prohibited from continuing to engage in this conduct and it is required to record calls with consumers to help ensure collectors do not make false statements in the future.
If you have been a victim of a scam or unlawful debt collection practices and would like to speak to an attorney, call our law office at 816-524-4949 or visit our website at Hoorfarlaw.com.