A call to collect, loaded with lies

The law is clear: debt collectors can’t use abusive, deceptive or unfair practices. Debt collectors who cross that line will end up in trouble with the FTC. That’s what happened to RTB Enterprises, Inc., a Houston company that collected debt as “Allied Data Corporation.” According to the FTC, collectors for Allied called people and pretended to be lawyers, made false threats to sue, and told lies to get people to pay unnecessary fees. Now Allied and its owner are the ones in court.

According to the FTC’s complaint, Allied’s collectors called people and claimed they worked with attorneys in departments — including a “Litigation Department” and “Legal Department” — that didn’t exist. Collectors were even more abusive when they made calls in Spanish, sometimes claiming to be lawyers, sometimes claiming they were preparing to sue.

Allied’s collectors were trained to extract information from consumers by offering them help through a “Hard-Ship Program,” but the “program,” like the “Litigation Department,” didn’t exist, according to the FTC. The training script was clear: every consumer “qualified” for the program if they gave detailed personal and financial information Allied could use against them later.

When consumers made payments, collectors insisted they pay an added $15 “transaction” or $10 “convenience” fee, saying the fees were required and unavoidable. The truth? The fees weren’t required, but they were lucrative. In two years, Allied cleared $1.3 million in profit from those fees.

You have rights when you deal with debt collectors. If you believe a collector has violated your rights, complain to the FTC. Your complaint gives us a lead to follow, and may stop a collector from mistreating someone else. Got a minute? Watch our short video about Dealing with Debt Collectors.


Blog Topics: 
Money & Credit


We went through the same issues with Cogent with the threats of them voiding his cdl and taking our bank accounts turning over his pay to the IRS and claiming we stole his pay checks cause of the loan for training to drive semi the raised up the under 2000 owed to 13000.00 got his account info and took 300.00 a week until we closed the card he gave them. We set up 25.00 a month and the calls finally stop 3 months ago

I asked a collector to send me proof of my debt.
They only sent me a statement on their letterhead. No photocopy of the orginial debt or contract numeber of acquisition. I contacted the company that I "owed" the money to, they did a search and told me they had no record of anything outstanding but, for a fee they could search their archives.
How am I supposed to verify it's authenticity?

Please investigate Van Ru Credit Corporation, which is cold calling people collecting on defaulted student loans. They tell you that if you rehabilitate your loan through them, by allowing them to take a monthly loan payment out of your bank account for 10 months, you will then qualify for a student loan interest deduction program. Then they send you a contract in the mail to sign that does not say this, it says "after 10 months the monthly amount due may increase." I didn't sign it and I called the Dept. of Educ. I was unemployed and then recently got a job. My loan was picked up by Van Ru ONE MONTH AGO. What the Dept. of Ed. told me is that if I were to, in fact, rehabilitate my loan through Van Ru, after 10 months I will NOT qualify for any interest reduction program and that INSTEAD all of the interest on my defaulted student loan will be CONVERTED TO PRINCIPAL by Van Ru, plus Van Ru will tack on over $6,000 in costs and service fees. Even the Dept. of Ed. said I should, therefore, not rehab my loan through Van Ru. I have to wait for my loan to somehow revert back to the Dept. of Education in order to avoid these ONEROUS "rehabilitation" terms. My original loans were three federal direct student loans for $2500 each. Van Ru would have converted the interest to principal without telling me and I would not have been eligible for any interest reduction program. I did not sign the contract, I marked it void and I wrote that I did not agree to the terms and did not wish to rehab my loan through Van Ru Credit Corp and that I wanted my loan to go back to the Dept of Ed so I can repay the Dept of Ed directly, like I used to. However, they recorded me authorizing them to take $250 out of my checking account every month, so I had to close my bank account and open a claim against them at Bank of America so they can't try to get money out of my new account. They cold called me and I responded in good faith, however, the net result for me would have been paying four times the amount of the loan, essentially taking the rest of my life to pay it off! This is deceptive, and it is patently unfair for the Dept. of Ed. to allow my loan to go to a company like this. I got a job in late March, received a letter from the Dept. of Ed., which I kept, intending to set up a payment arrangement to resume payment of my loans, and in the very short interim, Van Ru ends up with my loan and tries to trap me in this ONEROUS situation, not telling me the full truth about the arrangement, and lying and telling me that the interest and/or penalties would be reduced or abated! The opposite was true! This destroys my trust in the federal government, as well, for contracting with such a company. They are located in Skokie Illinois.

I just got off the phone with a supervisor from Van Ru. He said that if I paid $5.00 a month for 9 months that the DOE would decrease my from $22,000 to $16000 and my loans would no longer be in default. He was very pushy and barely let me get in a word in the conversation. He didn't even ask me for my debit card information... he demanded it! I've already been through this with another student loan debt collector who I paid $230.00 a month for 8 months only come to find out it was a scam and I was out $1840.00!! I refused to give him my bank information and hung up. I would much rather deal with the DOE than some scammer subsidiary and I'm very disappointment that the DOE would even allow Van Ru to be a trusted contractor for them.

Notify the Federal Student Aid Ombudsman at 1-877-557-2575 if you have a complaint that you cannot resolve with your lender.

You also may wish to contact the Consumer Financial Protection Bureau online or call (855) 411-2372.

THIS WORKS! I had Debt Collectors call me years ago with threats, cussing, everything this video talks about. FIGHT BACK! Next time they call you, RECORD IT & when they have cussed & threaten you, call them back & fight back. I did! I fought back 6 times & WON & so can you. USE THE FEDERAL LAWS & file a complaint as ProSe. Plus, file a complaint with the FTC & let them know. FIGHT BACK & WIN. I DID & SO CAN YOU!


Some rules and regulations for debt collectors. If anybody found that collectors activities different, don't hesitate to complaint to FTC

This same company called my cell phone looking for information for my son (a grown man who lives with his family in another city). I have now changed my cell phone message that now says: Hi! If this is a business-related call and you want a return phone call, please leave your full name, including spelling, the name of your company, the date and time of your call, a call back number, and the nature of your call. If this is a friend or family member, I'll get back to you as soon as possible! Lol!

file a complaint with CFPB


You can file a consumer complaint with the Federal Trade Commission (FTC) online at www.ftc.gov/complaint or you can call 1-877-FTC-HELP.

You produced some decent points there. I looked on the net to the problem and discovered many people goes together with along along with your web site.

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