Racial Slur-Dropping Debt-Collection Agency Settles With FTC For $1.3 Million

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!)

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Edit Your Comment

  1. mopar_man says:

    “One complaint is one too many.”

    Heh. You’d think they would take that statement more seriously instead of paying $1.3mil.

  2. CumaeanSibyl says:

    No, you mean “one million-dollar settlement is one too many.”

  3. themanishere says:

    At least I hope they called the correct race the correct racial slur–otherwise this case could be even MORE embarassing for them…

  4. shan6 says:

    Sometimes I feel bad for wanting bad things to happen to debt collectors. And then I remember their practices.

  5. smarty says:

    This quote from the article just shows how useless and/or corrupt the BBB is:

    “But Carol Ritter, the Houston BBB’s vice president of operations, said LTD either resolved complaints or sent the problem back to creditors. LTD joined the BBB in 1995, a year after the company was founded.

    “I would say we are surprised,” Ritter said. The BBB did not count LTD among the industry’s worst offenders. “They appeared to be doing everything correctly,” Ritter said. “We’ve seen some agencies in town that were just horrendous.”

  6. mexifelio says:

    I hope the FTC uses LTD to collect from thous douches.

  7. magus_melchior says:

    @smarty: It means that the BBB and the consumers they try to help are SOL if someone like LTD games their system.

    (Great, now I feel like FDR…)

  8. vex says:

    Yet they are still allowed to stay in business. Their illegal and abusive tactics probably earned them enough to fit the 1.3 million fine into their budget. So the FTC fines them, then tells them not stop. Why should they? They should just keep abusing consumers and absorb the fines until it becomes unprofitable.