Defendant pays the price for selling fake consumer debt portfolios

Debt buying is big business. That’s the sale of old debt, for pennies on the dollar, by creditors to buyers who then attempt to collect the debt or sell it to other buyers.

But when a person or company sells fake debt portfolios, that’s fraud. And that’s what the FTC alleged happened in an elaborate scheme carried out by Joel Tucker and three corporations he controls.

According to the FTC, Tucker sold what were supposed to be payday loan debts – but actually, the debts were fake. Tucker’s counterfeit portfolios consisted of spreadsheets that listed real people’s names, contact information, and Social Security numbers. In truth, the people listed in the portfolios didn’t owe those debts. In fact, some of the payday lenders that supposedly made the loans didn’t even exist – Tucker simply made them up.

When debt collectors began making calls to the people on the list, many denied ever receiving loans listed in the portfolios. As in other FTC enforcement actions involving phantom debt, some people agreed to debt collector demands for payment even though the debts were fictitious. Some people made payments because the collectors could support their demands by reciting sensitive information about them, like Social Security numbers and financial account numbers. Others paid simply to stop the debt collection calls.

If a debt collector calls you about a debt – and before you agree to pay anything – ask for a validation notice that says who originally gave you the loan. By law, debt collectors have to send you a validation notice in writing, within five days of contacting you. If they don’t, that’s a red flag. And if a debt collector threatens, harasses or intimidates you into paying a debt, that’s illegal, too. Report it to the FTC.

To learn more, see Debt Collection and Time-Barred Debts.

 

Blog Topics: 
Money & Credit

Comments

Just read the newest about debt buying and guess what? This Advance Cash Service or as they threaten us by ACS or ACE say that they are the mother company for this 500 Fast Cash that was in this report that I just read. I have been writing and writing anybody who I thought would help me. I have over 300 emails even arrest warrants, threats of the big bad police coming to arrest me. They say that I signed for a $300 loan, refuse to give me a date that this was signed, said that after I pay they'll send me all the information. I get as many as 4 a day from different people with different amounts all from ACS or ACE. They now say, " since you will not get back to us we are filing in court". I have answered every email that they have sent, I have them on record! I also have my bank statements and my bank is ready to help . They have even sent threats saying they were with FBI, FTC and IC3.

If a company lies and says it is working with the federal government, you can report it to the FTC at FTC.gov/complaint. The information you give will go into a database that law enforcement uses for investigations.

You can also report them to your state Attorney General’s office and the Consumer Financial Protection Bureau.

I Have received emails and phone calls threatening to put me in jail if I did not pay back a payday loan by the date on the email. I knew it was a scam an emailed them back stating that. I informed them I was contacting the authorities because they did have all my personal information. It has happened 5 times know I believe. These people should go to jail!!

Where do I find out more information about this is SC. I have a friend who the same thing is happening to. She paid one of them but there are others calling. She says she has never stepped foot in one of those payday loan places. The police would NOT take a report.

Credit reporting lies. I've paid off my collections one by one. Still shows on credit report that it is in collections. I was told by Credit Karma that the collection agency sends them the updates. Guess what, they dont!! How is this fair when consumers are actually cleaning up their credit. It still shows bad on the score. Not fair at all. One company hasnt reported in 5 years. Meanwhile, it sits on my credit report. I can dispute them one by one but that takes time. They should be made to update the credit report if they are going to get ugly and threaten with lawsuits or say it is still in collections after it has been paid. Im about to go bizerk.

Excellent writing. It is a big help when you are getting at least three calls a day for two month alraedy. Will keep ypu posted THANKS!

Portfolio Recovery Associates called and recited my entire SSN and date of birth without even knowing if I was the person.

I already identify the exactly person who have access my phone and copy all my data and details,can i ask your guidance what action i do to that person?

You can file an identity theft report at IdentityTheft.gov.

You can report details about the person who took your information. You can create a Identity Theft report to show to law enforcement and pre-printed letters to send to businesses to show identity theft has happened. You can create a personal account and personal recovery plan to use to repair problems.

Thanks for the update.

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