A debt-collection agency settled with the FTC for $1.3 million after thousands of complaints were lodged against the company for abusive and illegal practices. LTD used threatening language and racial slurs against debtors. They also threatened they would garnish debtor’s wages, something that can’t happen without a trial. Company managers were found to be complicit in its employees illegal actions. LTD collected debts for major credit card companies and retail chains.

LTD is said to be taking the federal action “seriously,” and that, “One complaint is one too many.”

Debt collector settles charges for $1.3 million [Star-Telegram] (Thanks to David!)

RELATED: Things Debt Collectors Can’t Do
Sample Letter For Disputing A Debt Collection Notice
Sample Letter For Telling A Debt Collector To Drop Dead

Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.