Recent Initiatives and Priorities
The Federal Trade Commission’sDebt Collection Program
Colin HectorAttorney
Division of Financial PracticesFederal Trade Commission
North American Collection Agency Regulatory Association 2015 Annual Conference
September 29, 2015
Federal Trade Commission
1. FTC’s enforcement authority
2. FTC debt collection strategic priorities and recent cases
3. FTC’s business education, outreach, and policy initiatives
4. Question and answer period
Presentation Overview
Federal Trade Commission
I ≠Disclaimer
Federal Trade Commission
1FTC’s Enforcement Authority
Federal Trade Commission
• Nearly 30 million or 15% of Americans have debt subject to third-party debt collection
• 88,300 complaints received in 2014– CFPB now engages in mediation attempts
A Nation of Debtors
Federal Trade Commission
• Enforcement– Section 5 of the FTC Act
(unfair/deceptive practices)– Fair Debt Collection
Practices Act (FDCPA)
• Rulemaking– No FDCPA rulemaking
• Consulting Role w/ CFPB
FTC Authority
Federal Trade Commission
• 13(b) actions, often seeking relief on an ex parte basis– Receivership over corporate entities– Freeze defendants’ assets– Immediate access to defendants’ business premises
• Civil penalty actions, referred to DOJ for filing– Generally reach out to company pre-filing– Often file complaint & settlement at same time
Approach in Litigation
Federal Trade Commission
2FTC’s Strategic Priorities for Debt Collection and Recent Enforcement Actions
Federal Trade Commission
In 2014:
– Filed 10 new cases against 56 different defendants
– Obtained nearly $140 million in judgments
– Banned 47 companies and individuals from the debt collection industry
Debt Collection is aMajor Priority for the FTC
Federal Trade Commission
In 2015:
– Have already filed 8 new cases against 37 different defendants
– Settled 5 cases and obtained $78,320,142 million in judgments
– Banned 18 companies and individuals from the debt collection industry
– More is on the way
Debt Collection is aMajor Priority for the FTC
Federal Trade Commission
• Data integrity and security
• Egregious collection practices
• Emerging technologies (e.g., social media, text messaging, email)
• Protecting vulnerable and underserved populations
Previous Priorities
Federal Trade Commission
New Priorities
• Data integrity and security
• Egregious collection practices
• Student loan debt collection
• CFPB rulemaking
Federal Trade Commission
FTC and CFPB v. Green Tree Servicing LLC
Federal Trade Commission
FTC v. Federal Check Processing, et al.
Federal Trade Commission
FTC and People of New York v. National Check Registry, et al.
Federal Trade Commission
FTC and People of New York v. Vantage Point Services
Federal Trade Commission
FTC and People of New York v. 4 Star Resolution, et al.
Federal Trade Commission
Messaging for Money Sweep
Deceptive Door Opener Texts
YOUR PAYMENT DECLINED WITH CARD ****-****-**** -5463 ... CALL 866.256.2117 IMMEDIATELY
Deceptive Door Opener Texts
YOUR PAYMENT FOR $[AMOUNT] IS SCHEDULED FOR [DATE]. CALL 866.257.2117 WITH ANY QUESTIONS OR CONCERNS
Deceptive Door Opener Texts
YOUR PAYMENT OF $[AMOUNT] IS SCHEDULED FOR [DATE]. CALL 866.257.2117 IF YOU WANT TO MAKE YOUR PAYMENT EARLY
Federal Trade Commission
False Litigation Threat Texts
I'm a process server w/ Primary Solutions, appointed to serve you papers for case [eight digit number]. Would you like delivery at [consumer's home address]?
Please have proper ID and witness present who can provide a signature. If there's no reply I'll have to bring the document to your employer.
It’s already been verified this is a contact number for [consumer's name] . So I just need an appropriate time and place to serve the papers when ready.
Check your call records, a recorded call from [number], verified this as the correct number. Indicating otherwise will be proof of deceptive practices. CB#: [phone number].
Federal Trade Commission
3FTC’s Debt Collection Business Education and Outreach Initiatives
Federal Trade Commission
Debt Collectionand the Latino Community
Federal Trade Commission
Do’s and Don’ts of Debt Collection Text Messaging: Business Blog
Federal Trade Commission
Data Security Guidance
FTC’s Business Center:business.ftc.gov
FTC’s Business Center:business.ftc.gov
CASES
VIDEO
REPORTS
BLOGS
GUIDES
FTC’s Business Blog:39 Debt Collection Posts to Date
Federal Trade Commission
FTC’s Debt Collection Dialogue Events
BUFFALOJune 15
DALLASSept. 29
ATLANTANov. 18
Federal Trade Commission
The Debt Collection Hall of Shame
To date: 87 bans
Federal Trade Commission
Question and Answer4
Federal Trade Commission
Colin HectorAttorneyDivision of Financial PracticesFederal Trade [email protected]
Questions?