Under the Fair Debt Collection Practices Act, it is illegal for debt collection firms to use false, deceptive, or misleading representations to collect a debt. One Ohio company apparently didn’t follow this rule when sending consumers letters that claimed attorneys were involved in the collection of their debts, and now it’s facing a lawsuit from federal regulators. [More]
misrepresentations
Feds Sue Debt Collector That Allegedly Misrepresented Attorney Involvement
By 4.17.17 — Updated: 5.9.17
VA Suspends DeVry University’s Participation In “Principles Of Excellence” Program
By 3.14.16
The Department of Veterans Affairs announced Monday that it would suspend DeVry University’s status as a Principles of Excellence institution after reviewing a federal lawsuit that accuses the popular for-profit college chain of deceiving prospective students about their employment potential after graduation. [More]
West Coast Grocery Chain Haggen To Close Most Stores After Expansion Gone Wrong
By 9.25.15
The purchase of nearly 150 grocery store locations in the Northwest meant to provide consumers with more options in the face of a mega-merger between chains Albertsons and Safeway has come to a rather disastrous end: Haggen Inc. plans to close most of those locations after its quick expansion turned sour and the company filed for bankruptcy. [More]
The Country’s Two Largest Debt Buyers Must Refund Consumers $61M Over Illegal Collection Practices
By 9.9.15
Encore Capital Group and Portfolio Recovery Associates are two of the biggest names in the debt-buying game, and according to federal regulators they have often used deceptive and harmful tactics to collect their newly acquired debts. Now, as a result of these actions, the companies must refund consumers $61 million and pay $18 million in penalties. [More]
West Coast Grocery Chain Haggen Sues Albertsons For $1B Over Misrepresentations In Acquired Stores
By 9.3.15
Nine months ago, when Albertsons and Safeway had to sell off a bunch of stores to make their $9.2 billion merger more palatable, the Washington-based Haggen supermarket chain agreed to snap up nearly 150 of those locations. Now Haggen, in a $1 billion lawsuit, says the sale of these stores was really a calculated effort on Albertsons’ part to eliminate competition. [More]
For-Profit Educator Ashworth College Settles FTC Charges It Misrepresented Career Opportunities, Transfer Credits
By 5.26.15
Federal regulators’ crackdown on the for-profit education industry continued today as Georgia-based Ashworth College agreed to settle Federal Trade Commission charges the company misled students about career training and credit transfers. [More]
