| Message |
Author |
 Posted: Thu Jan 05, 2006 12:31 pm Subject: NCO Group to Pay Largest FCRA Civil Penalty to Date |
|
|
This is from the FTC websie at:
http://www.ftc.gov/opa/2004/05/ncogroup.htm
| Quote: |
NCO Group to Pay Largest FCRA Civil Penalty to Date
One of the nations largest debt-collection firms will pay $1.5 million to settle Federal Trade Commission charges that it violated the Fair Credit Reporting Act (FCRA) by reporting inaccurate information about consumer accounts to credit bureaus. The civil penalty against Pennsylvania-based NCO Group, Inc. is the largest civil penalty ever obtained in a FCRA case.
According to the FTCs complaint, defendants NCO Group, Inc.; NCO Financial Systems, Inc.; and NCO Portfolio Management, Inc. violated Section 623(a)(5) of the FCRA, which specifies that any entity that reports information to credit bureaus about a delinquent consumer account that has been placed for collection or written off must report the actual month and year the account first became delinquent. In turn, this date is used by the credit bureaus to measure the maximum seven-year reporting period the FCRA mandates. The provision helps ensure that outdated debts � debts that are beyond this seven-year reporting period � do not appear on a consumers credit report. Violations of this provision of the FCRA are subject to civil penalties of $2,500 per violation.
The FTC charges that NCO reported accounts using later-than-actual delinquency dates. Reporting later-than-actual dates may cause negative information to remain in a consumers credit file beyond the seven-year reporting period permitted by the FCRA for most information. When this occurs, consumers credit scores may be lowered, possibly resulting in their rejection for credit or their having to pay a higher interest rate.
The proposed consent decree orders the defendants to pay civil penalties of $1.5 million and permanently bars them from reporting later-than-actual delinquency dates to credit bureaus in the future. Additionally, NCO is required to implement a program to monitor all complaints received to ensure that reporting errors are corrected quickly. The consent agreement also contains standard record keeping and other requirements to assist the FTC in monitoring the defendants compliance.
The Commission vote to authorize staff to refer the complaint and consent decree to the Department of Justice was 5-0. The Department of Justice filed this matter at the FTCs request in the U.S. District Court for the Eastern District of Pennsylvania on May 12, 2004.
NOTE: The Commission files a complaint when it has �reason to believe� that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The complaint is not a finding or ruling that the defendant has actually violated the law.
NOTE: This stipulated final order is for settlement purposes only and does not constitute an admission by the defendant of a law violation. A stipulated final order requires approval by the court and has the force of law when signed by the judge.
Copies of the complaint and consent decree are available from the FTCs Web site at http://www.ftc.gov and also from the FTCs Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint, or to get free information on any of 150 consumer topics, call toll-free, 1-877-FTC-HELP (1 877-382-4357), or use the complaint form at http://www.ftc.gov. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.
MEDIA CONTACT:
Jen Schwartzman
Office of Public Affairs
202-326-2674
STAFF CONTACT:
William Haynes
Division of Financial Practices
202-326-3224
(FTC File No. 992-3012)
(Civil Action No. 04-2041)
(http://www.ftc.gov/opa/2004/05/ncogroup.htm) |
_________________
Experience is something you don't get until just after you need it.
|
|
LCW
Moderator
Joined: 05 Sep 2005
Posts: 1164
Debtcc Points: 21284
|
|
|
| Posted: Thu Jan 05, 2006 2:23 pm Subject: |
|
|
Now it is the time of NCO Group to undergo legal surveillance.
These are the results of the complaints filed by the consumers. The big guns are taking actions against such companies slowly but strongly.
The sad part is that there are so many companies like this that are doing unfair business. If one company is penalized, two new companies pop up from the other side. What can be done to change this entire system?
|
|
david
Debt Samaritan
Joined: 04 Jan 2006
Posts: 1278
Debtcc Points: 30122
|
|
|
| Posted: Thu Jan 05, 2006 2:34 pm Subject: |
|
|
My suggestion is to contact your federal law makers. Encourage them to introduce legislation strenghening consumer protection. The credit industry got what they wanted with Bankruptcy Reform (good or bad in hind sight).
Among Needed Improvements:
-Original Creditors subject to FDCPA
-Limitations on the number of times a creditor/collector may call.
--Limit frequency of calls particularly once contact is made. For instacte call once every 7 days after making contact with consumer).
-Prohibit use of Auto Dialers, or require dialers to have their agent on the line when call is connected. (My time is just as valuable as theirs, and I will not wait for a dialer to connect. If you want to talk to me be there when I answer)
-Clarify that collection attempts must cease immideatly upon payment (no excuses like the computer updates once a day, once payment made, calls must stop)
-FTC required to take enforcement action at certain benchmarks (say 100 complaints in a year, etc).
-Raise limits / fine imposed against violators at least ten times.
Any other resonable ideas out there?
_________________
Experience is something you don't get until just after you need it.
|
|
LCW
Moderator
Joined: 05 Sep 2005
Posts: 1164
Debtcc Points: 21284
|
|
|
| Posted: Thu Jan 05, 2006 3:06 pm Subject: |
|
|
Clay, you have pointed out the things in very accurate shape. But the collection agency or the creditor might object to one or all of them since nothing goes to their favor. And the legislature will make decisions looking on both sides.
Ari, please express your matured views here so that we can understand the requirements from the viewpoint of collection industry also. Later a mail can be forwarded to the federal law makers and express our views.
|
|
david
Debt Samaritan
Joined: 04 Jan 2006
Posts: 1278
Debtcc Points: 30122
|
|
|
| Posted: Thu Jan 05, 2006 4:30 pm Subject: |
|
|
While a letter from a group would certainly be effective, individual contacts (letters, email, phone calls even personal visits to district offices) will have a greater influence.
You are right many of the ideas I have suggested are pie-in-the-sky dreams, however when the (needed) bankruptcy reform law was passed; little or no concern was given to consumers, and there needs to be a leveling of the playing field.
The number of Creditors and Collectors doing what ever they darn well please because no one says anything, and because the FTC won't do anything is getting out of hand. Something needs to be done to address a rapidly growing problem.
Oh, heres is another thought. Prohibit collection of time barred debts all together.
_________________
Experience is something you don't get until just after you need it.
|
|
LCW
Moderator
Joined: 05 Sep 2005
Posts: 1164
Debtcc Points: 21284
|
|
|
| Posted: Thu Jan 05, 2006 4:38 pm Subject: |
|
|
I just thought of one here:
A debt should be sold only once. Multiple collection agencies purchase a single debt and continue collection efforts. Also, the creditors must authorize that the debt has been legally sold to xxxx collection agency. This way, we will be sure that there will be only one collection agency that will be making the collection efforts.
Clay, you have discussed a very nice topic here. Thanks for bringing such informative threads.
|
|
ben
Joined: 20 Jul 2005
Posts: 2118
Debtcc Points: 41157
|
|
|
| Posted: Fri Jan 06, 2006 9:59 am Subject: |
|
|
Another CA bites the dust! It's good to see news like this. This collection industry needs to be regulated.
_________________
Register today to encash debtcc points.
|
|
kam
Guest
Debtcc Points: 100
|
|
|
|
|
| Posted: Fri Jan 06, 2006 10:32 am Subject: |
|
|
I got one for you. My girlfriend contacted a collection agency (can't remember which one) because it was the last debt on her credit report. It is for a little under 1000 dollars and she wanted it cleared. She told the agency she would start making payments in October...I think they agreed on $70 a month. So he was going to send her something in the mail on where she should send her money or whatever. Which sounds kind of weird because don't collection agency's try to get you to pay big chunks at one time and not do a monthly payment plan?
Anyway..we NEVER got anything in the mail from them. We've been lazy and never called back yet...plus we are having some financial issues after christmas and all so we don't want to pay for a couple months anyway.
But have you ever heard of a collection agency not sending you something to pay money...hmmm little weird.
|
|
shopaholic5
Joined: 07 Sep 2005
Posts: 275
Debtcc Points: 5629
|
|
|
| Posted: Fri Jan 06, 2006 2:29 pm Subject: |
|
|
Yipee another agency nailed to the wall!  . Finally they are having to pay for the hell they are putting people through.
|
|
NotsoLucky
Joined: 02 Nov 2005
Posts: 3164
Debtcc Points: 45632
|
|
|
| Posted: Sat Jan 07, 2006 11:57 am Subject: |
|
|
Hmmmm, I hear from my own manager at Protocol to NCO is the largest CA in the world. Yet, according to their percentages, they're not doing so hot. Their collections figures are crap and they are bottom-rung in the rankings. I guess the bigger they come, the harder they fall.
They want to stay out of trouble and bring their numbers and approval rating up, the FDCPA all the way, verify ever contact, mini-miranda every contact, and keep an open mind! No more than twice a week at home, and twice a month at work, and keep it between 8am and 9 pm in the respective time zone of the borrower. Above all, watch the language!
They should be ashamed of themselves! Biggest CA worldwide and taking a shallacking from the little guy.
|
|
JediMistressAri
Moderator
Joined: 05 Dec 2005
Posts: 2242
Debtcc Points: 28856
|
|
|
| Posted: Wed Feb 01, 2006 6:16 pm Subject: NCO calling me? |
|
|
Does anyone know if NCO's number is 1 800 568 0052? They call me at work but never say who they are.
_________________
Register today to encash debtcc points.
|
|
G
Guest
Debtcc Points: 100
|
|
|
| Posted: Thu Feb 02, 2006 10:35 am Subject: |
|
|
NCO's number is 800-873-5697... I have seen that other number somewhere, but I cant seem to recall where exactly.
_________________
Experience is something you don't get until just after you need it.
|
|
LCW
Moderator
Joined: 05 Sep 2005
Posts: 1164
Debtcc Points: 21284
|
|
|
| Posted: Thu Feb 02, 2006 3:40 pm Subject: |
|
|
The number I have is 800-569-9633
_________________
Register today to encash debtcc points.
|
|
Kathryn
Guest
Debtcc Points: 100
|
|
|
| Posted: Wed Oct 03, 2007 5:21 am Subject: |
|
|
hah, there's a "cost of buiness" for ya.
|
|
JCEMT
Moderator
Joined: 10 Sep 2007
Posts: 2997
Debtcc Points: 27046
|
|
|
|
|
| Posted: Mon Dec 31, 2007 11:44 am Subject: NCO |
|
|
NCO has multiple numbers, some are toll free and some appear to be local numbers with actual area codes before them. I'm currently going through issues with them. I'm not saying I'm not wrong, i'm just really poor at this time. I was called a liar multiple times today by a rep that didn't give me his name and was also given info on one day that they said they never gave, a few days later
_________________
Register today to cash in debtcc points.
|
|
Brokeguy
Guest
Debtcc Points: 100
|
|
|
