Archives for September 2013

I.C. System Votes by “Overwhelming Majority” to Support Veterans with Collection Problems

September 19, 2013 By admin Leave a Comment

ARMing Heroes, the collection industry’s charity for military veterans, today announced that I.C. System and its employees have generously donated to ARMing Heroes’ fourth annual No Debts for Vets Charity Fundraising Drive, which runs from September 11 through Veterans Day, November 11, every year. Tax deductible donations are now being accepted online at www.armingheroes.org and via mail to PO Box 353, Collingswood, NJ 08108, payable to ARMing Heroes.

“This year our employees had a chance to vote for the charity they felt most deserving of the funds from our charity golf tournament. By an overwhelming majority they chose ARMing Heroes. We couldn’t be more pleased to have the opportunity to give to such a worthy effort,” said John Erickson, President of I.C. System. “We have a high percentage of employees whose families have ties to the military so this is really a natural extension for us.”

In the past several months, press releases like those telling the stories of veterans like Jacob Gayer and Daniel Smith remind all of us why we should support those who have served their country. And more recent stories, like Javier Herrera’s story also told in the preceding link, show us how easy it is for those in the collection industry to help veterans in special ways through their contacts, due to how “small” the industry really is.

Many companies in the industry have chosen to raise money for veterans by incentivizing their people to give to this worthy cause in exchange for dress down days or for other benefits management might think of. This is the single biggest way those in the collection industry can help our cause. Those interested in holding an employee fundraiser should contact the organization through www.armingheroes.org.

More Than 850,000 Veterans Awaiting Benefits Claim Decisions

Why should the private sector, specifically those in the collection industry, support a cause that already receives public support through the Veterans Administration? According to Time.com, there were more than 850,000 veterans whose claims with the Veterans Administration are considered backlogged, or more than 125 past the submission date. There has never been a time in U.S. history when so many veterans have been in need of financial assistance faster than their government can provide. And there are some needs that just cannot be met by the government, or by other charities. ARMing Heroes fills a charitable niche by linking people identified with employment, credit, and financial counseling needs with the accounts receivable management industry, an industry uniquely poised to help in these areas.

ARMing Heroes was founded and began operating in March, 2009. The organization’s mission is to serve the needs of U.S. military veterans, including their spouse and children. ARMing Heroes fills a charitable niche by linking people identified with employment, credit, and financial counseling needs with the accounts receivable management industry, an industry uniquely poised to help in these areas. Persons interested in volunteering their time and others interested in applying for benefits or pledging other forms of support are encouraged to contact the organization at www.armingheroes.org.

What Can I Do Right Now to Help?

Visit www.armingheroes.org and donate now.
Friend us and post this article to your page on Facebook.
Tweet about this article on Twitter.
Join our group on LinkedIn, the ARMing Heroes Veterans Charity Supporter / Assistance Center.
Comment on this article online and ask us to contact you.
Forward this article via email to your key contacts.
Print this article and fax it to your local congressional office and ask them to post our website on theirs as a resource for vets.

I.C. System Votes by “Overwhelming Majority” to Support Veterans with Collection Problems
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Accounts Receivable Management

Filed Under: News

Columbia Ultimate Announces Ajility 3.0

September 19, 2013 By admin Leave a Comment

Columbia Ultimate, industry leaders in providing clients with revenue maximization solutions for more than 30 years, announced today the release of Ajility 3.0, the latest update to its newest accounts receivable management (ARM) software solution. Ajility 3.0 is in wide release and available now.

Ajility 3.0 offers built-in contact management, data, letter and payment services to Columbia Ultimate’s clients with the ability to create flexible, configurable business rules and automation of routine tasks with a real-time workflow engine.

Ajility 3.0 highlights include:

Built-in UltimateAnalytics — Identifies the accounts that are most likely to pay and the value they represent, provides address and phone numbers, deceased and bankruptcy information and more
Built-in UltimatePayments — Provides credit card and ACH processing services through a secure Internet connection
Built-in UltimateAccess — Real-time client portal allows access to dashboards and performance reporting for all placements, and the ability to view clients/accounts current status, balances and activity
Hosted model (SaaS) — Now available

Ajility is compliant with the latest security standards such as PCI, SSAE 16 Type II, and HIPAA and has a full-featured compliance management system.

Established in 1979 and headquartered in Vancouver, Wash., Columbia Ultimate is a privately held corporation servicing healthcare, collections agencies, debt buyers, banking and finance, retail and government sectors.

Columbia Ultimate’s family of companies includes Columbia Ultimate, RevQ, HealthWare and The Intelitech Group. RevQ provides industry leading software solutions and consulting services to improve collections in the government sector. The Intelitech Group is a business management and debt recovery consulting company that provides technology solutions designed to enhance profitability. HealthWare provides revenue cycle management solutions to the healthcare industry. More information is available at www.columbiaultimate.com

Columbia Ultimate Announces Ajility 3.0
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Accounts Receivable Management

Filed Under: News

National Credit Default Rates Decreased in August 2013

September 19, 2013 By admin Leave a Comment

Data through August 2013, released today by S&P Dow Jones Indices and Experian for the S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults, showed decrease in national default rates during the month.

The national composite was 1.34% in August, marginally down from 1.35% in July. The first mortgage default rate was 1.23% this month, down from 1.25% posted last month. The second mortgage posted 0.57% in August, up from 0.54% July rate. The auto loan default rate reported 1.11% in August, up from a 1.03% previous month’s level. The bank card rate hit a new low of 3.12% in August; it was 3.22% in July.

“Consumer credit quality continues to look healthy,” says David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Dow Jones Indices. “The indices are back to pre-financial crisis levels and are stable. The national composite and the first mortgage posted recent lows in August; they were 1.34% and 1.23%, marginally down from the last month’s rates. The second mortgage posted 0.57%, three basis points up from July low. Auto loan default rate was 1.11%, eight basis points up from the last month. Bank card default rate hit a new low of 3.12%, ten basis points down from July level and 65 basis points down from the level posted in August 2012. All loan types remain below their respective levels a year ago.

“Two cities, New York and Los Angeles, saw their default rates drop in August while three cities – Chicago, Dallas and Miami – saw increases. All moves were small. All five cities remain below default rates they posted a year ago, in August 2012.”

The table below summarizes the August 2013 results for the S&P/Experian Credit Default Indices. These data are not seasonally adjusted and are not subject to revision.

Source: S&P/Experian Consumer Credit Default Indices
Data through August 2013

Jointly developed by S&P Dow Jones Indices LLC and Experian, the S&P/Experian Consumer Credit Default Indices are published on the third Tuesday of each month at 9:00 am ET. They are constructed to track the default experience of consumer balances in four key loan categories: auto, bankcard, first mortgage lien and second mortgage lien. The Indices are calculated based on data extracted from Experian’s consumer credit database. This database is populated with individual consumer loan and payment data submitted by lenders to Experian every month. Experian’s base of data contributors includes leading banks and mortgage companies, and covers approximately $11 trillion in outstanding loans sourced from 11,500 lenders. For more information, please visit: www.consumercreditindices.standardandpoors.com.

National Credit Default Rates Decreased in August 2013
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Accounts Receivable Management

Filed Under: News

CFPB Lays Out Guidelines for Protecting Servicemembers in the Payday Lending Market

September 19, 2013 By admin Leave a Comment

Today, the Consumer Financial Protection Bureau (CFPB) released guidelines to its examiners on how to identify consumer harm and risks related to Military Lending Act (MLA) violations when supervising payday lenders. The CFPB is committed to ensuring that payday lenders comply with the Act, which provides greater protections for military families, including capping annual percentage rates at 36 percent. The new guidelines are included in an updated exam manual that the CFPB released today for the short-term, small-dollar lending industry.

“Protecting servicemembers is a priority for the CFPB,” said CFPB Director Richard Cordray. “We will use the authority Congress gave us to enforce the Military Lending Act and to safeguard our men and women in uniform from illegal payday loans.”

Payday loans are typically designed as a way to bridge a cash shortage between pay or benefits checks. Such loans are generally for small-dollar amounts and borrowers must repay them quickly. The Dodd-Frank Wall Street Reform and Consumer Protection Act specifically tasked the CFPB with supervising payday lenders for the first time at the federal level. The CFPB began that work in January 2012.

In 2006, the Department of Defense issued a report concluding that predatory lending practices by payday lenders and other creditors near military bases were a threat to military personnel and their families. In 2007, Congress passed the MLA to help address this problem and the Department of Defense issued rules to implement the law. In general, the law shields active-duty military personnel, active National Guard or Reserve personnel, and their dependents from lending practices that Congress determined should not be tolerated in lending to servicemembers. In 2012, Congress amended the law by, among other things, giving the CFPB the authority to enforce it.

Through its enforcement and supervisory work, the CFPB will be scrutinizing lenders to make sure that they are following the MLA requirements when they make short-term, small-dollar loans to servicemembers and their dependents. Specifically, payday lenders must follow the requirements of the law for all closed-end loans of $2,000 or less and with terms of 91 days or less. These requirements include:

Annual percentage rate capped at 36 percent: Because most payday loans are for several hundred dollars and have finance charges of $15 or $20 for each $100 borrowed, a typical two-week term can equate to an annual percentage rate (APR) ranging from 391 percent to 521 percent. Payday lenders must cap the APR – which incorporates all fees and costs associated with the loan – at 36 percent when lending to servicemembers.
No rolling over of loans: When consumers cannot pay back the loan at the time it is due, borrowers can often pay only the finance charges and renew the loan. This fee does not reduce the amount owed. If a payday loan is rolled over multiple times, it’s possible to pay several hundred dollars in fees and still owe the original amount borrowed. Payday lenders are banned from rolling over loans for servicemembers, unless the new transaction results in more favorable terms for the servicemember.
No signing away of servicemember rights: The MLA prohibits lenders from making servicemembers waive their rights under the Servicemembers Civil Relief Act or other state or federal laws that provide critical consumer protections. The MLA also prohibits lenders from requiring servicemembers to waive their right to seek resolution of any legal claims in court.
No requiring allotments to repay: Under the military allotment system, military personnel can repay their loans by having payments directly deducted from their paycheck before their salary is deposited in their account. When servicemembers pay by allotment, they lose certain consumer protections as well as their flexibility to adjust their budget if a financial emergency comes up. The MLA bans lenders from requiring military members to pay by the allotment system and gives servicemembers control over how their income is spent.

In January 2012, the CFPB published its first short-term, small-dollar lending procedures manual. The field guide describes the types of information that the agency’s examiners gather to: evaluate payday lenders’ policies and procedures; assess whether lenders are in compliance with federal consumer financial laws; and identify risks to consumers throughout the lending process. Risks to consumers resulting from MLA violations are significant and subject to CFPB enforcement.

Today’s revised Short-Term, Small-Dollar Lending Procedures can be found at: http://files.consumerfinance.gov/f/201309_cfpb_payday_manual_revisions.pdf

Congress gave the Department of Defense the authority to define the types of loans covered by the MLA, in consultation with the CFPB and other agencies. In May 2012, the CFPB signed a Joint Statement of Principles with the Pentagon on small-dollar lending. The CFPB looks forward to continuing its strong partnership with the Pentagon to ensure appropriate protections for servicemembers and their families. More information about how the CFPB is protecting servicemembers is at: http://www.consumerfinance.gov/servicemembers/

The CFPB is continuing to study the payday lending market to make it work better for all consumers and honest businesses. As part of this effort, the CFPB issued a report in April on payday and deposit advance loans.

CFPB Lays Out Guidelines for Protecting Servicemembers in the Payday Lending Market
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Accounts Receivable Management

Filed Under: News

DOMA’s Downfall has State-by-State Impact on Debt Collectors

September 19, 2013 By admin Leave a Comment

Now that the Supreme Court has found the Defense of Marriage Act unconstitutional, how should debt collectors treat same-sex spouses?

In our most recent Ask the Attorney webinar on August 29, legal experts argued that the definition of “spouse” under the Fair Debt Collection Practices Act (FDCPA) may depend on the interpretation of state law. DOMA only applied to federal recognition of gay marriages or civil unions, which is why states have been free to pass their own laws allowing or disallowing gay marriage. Therefore, if a state recognizes same-sex marriages or civil unions as the functional equivalent of a traditionally defined spouse under that state law, then that state’s courts would apply the FDCPA the same way, in the context of a bankruptcy or other interpretations.

“That’s the problem I think that the bankruptcy courts face now, particularly with parties who are married in a state that recognizes same-sex marriage, and then move to a state that does not, and then later file bankruptcy,” said Don Maurice, Partner at Maurice & Needleman, P.C. “I mean, that’s a problem there, absolutely. And that’s one of the challenges that is faced by persons who have same-sex marriages or civil unions, is that there’s a lack of uniformity, and state law often determines their rights as spouses.”

In terms of communication, if a state recognizes gay marriage, then collectors would be able to communicate with a same-sex spouse. Also, when opening up for 1692(c)(d), the consumer’s spouse would be included.

Other hot topics in consideration from this webinar included: voicemail confusion for debt collectors (Which is safer, Foti or Zortman?), state specifics for collection (Why is it so tough to leave a voicemail in New York City?) and more.

You can download the transcript and audio recording from our August 29 webinar to read all about DOMA’s impact on debt collections and the other topics covered in the session.

Also, be sure to catch our next Ask the Attorney webinar on Wednesday, October 30 at 2 p.m. Eastern.

You can read all about our attorneys’ answers to the industry’s most pressing compliance questions in To the Point – Voicemails and Foti. We’ve condensed the compliance questions asked at our August Ask the Attorney Webinar into a user-friendly, five-part guide covering: Foti and Zortman voicemails, the latest news in robo-dialing and much more!

We’ve also included two appendixes with the full text of key court cases and regulations cited by our attorneys during the webinar.

DOMA’s Downfall has State-by-State Impact on Debt Collectors
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Accounts Receivable Management

Filed Under: News

CFPB Addresses Collection of Time-Barred Accounts, But More Guidance Needed

September 19, 2013 By admin Leave a Comment

With the Consumer Financial Protection Bureau (CFPB) scheduled to commence exercise of its rule-making authority later this year, many debt collection industry experts were surprised by a joint amicus brief filed by the FTC and the CFPB that stated in part, “…in some circumstances, a debt collector may seek voluntary payment of a time-barred debt without violating the FDCPA, even if the communication is silent as to the statute of limitations.”

Read the full amicus brief by the FTC and the CFPB at http://files.consumerfinance.gov/f/201309_cfpb_agency-brief_12-cv-04057.pdf

Consent orders earlier this year by the FTC regarding credit card surcharges (convenience fees) and voice mail messaging indicate a willingness by Federal regulators to allow these practices but provide little guidance for the industry, further confusing the matter.

Attorneys John Rossman and Mike Poncin examine the recent rulings the CFPB and FTC – and the possible implications of CFPB rulemaking – in the latest episode of their ARM legal audio blog The Debt Collection Drill.

Listen to the 9-minute episode below:

(if you can’t see the player above, listen to the clip at http://traffic.libsyn.com/thedrill/TDCD_ep31.mp3)

Are you uncertain how to listen to a podcast such as The Debt Collection Drill? Click here for a timely article on easy and productive ways to listen to a podcast.

CFPB Addresses Collection of Time-Barred Accounts, But More Guidance Needed
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Accounts Receivable Management

Filed Under: News

A Closer Look at Compliance with Industry Expert John Bedard

September 19, 2013 By admin Leave a Comment

Julie Melton

Compliance is a vital part of our industry, and agencies often have difficulty keeping pace with the latest federal requirements that seem to change almost daily. Fortunately, our industry has people like compliance expert John Bedard on our side.

Bedard, managing partner of Bedard Law Group, P.C., is a nationally recognized authority on the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA). He represents the ARM industry and works tirelessly to help all collectors stay compliant.

We sat down with John and asked him to share his thoughts and expertise on the current state of compliance.

Q: For those readers who are new to the industry, can you tell us what is “compliance” or what becoming “compliant” means exactly?

– It means understanding that the state and federal government have created laws and rules which govern the operation of businesses in our industry. Specifically, when we talk about compliance or becoming compliant we mean making sure that our businesses are not violating the rules state and federal governments have created for our industry.

Q: What are the core challenges agencies face to become and remain compliant in today’s environment?

– The main challenge is gaining an understanding of the universe of laws with which debt collectors must comply, making sure to stay up-to-date on the changing legal environment related to those laws.

Q: What are some of the key factors agencies must be aware of to ensure they remain compliant?

– Above all else, debt collectors must understand that every aspect of business operations is regulated by the government—from sending letters, to making phone calls, to posting payments. The biggest mistake debt collectors can make is not taking the time to understand the vast amount of rules with which they must comply.

Q: What role do you see technology taking in helping agencies playing a part in remaining compliant? Is it a help or a hindrance?

– Technology, when used properly, can be a tremendous help to drive revenue, keep clients happy, and stay in compliance with the myriad of laws with which a debt collector must comply. Fortunately, the marketplace is replete with technological solutions to the industry’s most pressing challenges.

Q: What are your thoughts on the current state of compliance and where do you see it going in the future?

– The collections industry’s number one focus today is on compliance. State and Federal regulators are examining the credit and collection industries with unprecedented scrutiny and regulators see themselves as a law enforcement agency with a zero-tolerance approach towards compliance.

The collections industry is currently going through some growing pains in terms of the maturity of its compliance management systems. However, I am certain that the industry will be better off and even stronger when the entire industry approaches compliance with a new focus and even better technology in place.

Q: Tell me a bit about convenience fees, what are they exactly?

– Convenience fees are charges a consumer pays for the convenience of making an immediate payment.

Q: How and when can convenience fees be charged and what should agencies know about them?

– The most important thing debt collectors should know about convenience fees is that some states prohibit them entirely, so great care should be taken in deciding whether to accept or charge such fees. Certain states prohibit this type of fee unconditionally.

Q: What are the risks and benefits of convenience fees?

– One of the main benefits of charging convenience fees is that it allows the consumer to make easy, quick, and inexpensive payment on an account. A key risk for debt collectors is to be sure they aren’t charging too much or not clearly informing the consumer about the fees.

Q: What are the dangers of convenience fees in regards to compliance?

– The biggest danger for debt collectors is not complying with state and federal laws that govern these fees at all times.

Q: Any final thoughts on convenience fees?

– These fees have raised the eyebrows of state and federal regulators across the country. If debt collectors are going to charge these fees, they should seek the advice of competent legal counsel to ensure it’s done properly and that they are not exposing consumers to risk.

Q: Which government organization do you see as the most important for collectors to pay attention to and keep up with regarding compliance?

– The CFPB is the place where the collection industry should be focusing its attention on right now. The CFPB will be creating rules for our industry very soon and collectors all over the country should be pay special attention to their actions and words.

Q: What do you see as the most high risk aspect of compliance for agencies?

– The absence of a compliance management system is one of the single most risky things facing collectors today. Meeting compliance obligations through a formal system of compliance instead of the scattered “whack-a-mole” approach the industry has taken in the past is paramount in today’s environment.

Q: Should agencies expect larger clients to begin asking for standard requirements?

– Yes, bringing compliance management systems up to an agreed upon standard will be a key focus over the next 12-18 months for the collection industry. The government is telling us this and clients are demanding it.

Q: Can compliance be a marketing tool?

– Not only will it be a marketing tool, it will be a survival tool. Clients are not going to want to conduct business with debt collectors who do not have a robust compliance management system in place to prevent, detect and correct consumer harm.

In addition to John’s invaluable advice, Columbia Ultimate offers the Compliance Management System which provides a single point of global control for compliance managers, clients, and regulators when auditing and reviewing an agency’s regulatory compliance controls. The Compliance Management System is hosted and available to all collections industry professionals, including non-Columbia Ultimate users.

A Closer Look at Compliance with Industry Expert John Bedard
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Accounts Receivable Management

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Multi-Channel Payment Strategy Webinar

September 19, 2013 By admin Leave a Comment

Online negotiation, payment by text and online payment portals continue to grow in popularity with both consumers and receivables management organizations. When a consumer is ready to make a payment, it is important your organization be able to accept it, using a method the consumer prefers at that moment.

RevSpring is sponsoring a Webinar to discuss the various electronic payment channels available to boost consumer responses and payments. The Webinar also will address risk mitigation strategies and compliance issues, including Reg E when accepting recurring ACH payments.

The hour-long Webinar will be hosted on Thursday September 19 at 2 p.m. EDT. This is the next installment in a series of Webinars on “Building a Multi-Channel Strategy.” Click here to register or contact learnmore@revspringinc.com for more information.

Previous Webinars in the series are available online and include:

Designing for Consumer Response

Suppressing Undeliverable Mail

Harnessing the Power of Electronic Communication

RevSpring was formed by the merger of DANTOM Systems, PSC Info Group, BestBill and Data Image. Its core service offerings include data hygiene and analytics, secure document creation and delivery, multi-channel communications, electronic billing and archival services and online payment tools, all while ensuring compliance with regulatory guidelines. RevSpring facilitates over one billion customer interactions annually. It serves a large and diverse customer base across the receivables management, healthcare, financial services, home services and other end-markets.

Multi-Channel Payment Strategy Webinar
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Accounts Receivable Management

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NARCA Symposium Will Teach Consumers about Legal Debt Collection

September 19, 2013 By admin Leave a Comment

The National Associate of Retail Collection Attorneys (NARCA) next month is holding a day-long symposium on debt collection that it hopes will better educate consumers, their advocates, and regulators on the role attorneys play in the ARM process.

NARCA is presenting its Legal Symposium on Consumer Debt Collection on October 15 at George Washington University in Washington, DC. The unique event will feature collection attorneys, judges, economists, consumer advocates, and at least representatives from federal agencies, including the CFPB.

The association says that the main focus is to engage with the public and combat the negative stereotype usually associated with the legal collection channel.

“Our story often gets lost or does not even get heard,” said Joann Needleman, President-Elect of NARCA and chair of the task force that created the symposium. “We hope to engage in an honest discussion of the role of the collection attorney.”

The symposium is free and open to the public. NARCA is also aggressively inviting members of the press to attend and cover the event. Using the courts for debt collection has been featured prominently in the press over the past few years.

The move to create an educational, high-profile symposium was driven in part by the story being told by others, including federal regulators. The FTC in 2010 issued a report entitled “Repairing a Broken System: Protecting Consumers in Debt Collection Litigation and Arbitration.” NARCA took issue with the legal collection system being classified as “broken.”

“This is an opportunity to reintroduce to the public how the court system works, especially as it relates to debt collection,” said Needleman. She noted that some of the content will focus on basic concepts like enforcement of contracts and the law.

But there is also a need to have an understanding among those in the legal ARM profession on how to make the court process more user-friendly for consumers, said Needleman. The final panel of the day, “Attorney-Consumer Communications: A Roadmap to Resolution,” will focus on just that.

The symposium will consist of four panel discussions comprised of more than 20 experts in fields related to consumer legal collections. To view the agenda and register for the event, visit http://www.narca.org/?2010/legal-symposium.html.

NARCA Symposium Will Teach Consumers about Legal Debt Collection
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Accounts Receivable Management

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Credit Card Rate-Reduction Robocallers Permanently Shut Down In FTC Settlements

September 19, 2013 By admin Leave a Comment

The Federal Trade Commission has continued its crackdown on illegal robocallers, with two more companies agreeing to settle charges that they used prerecorded calls to trick consumers into deceptive credit card interest rate reduction scams.

Under separate proposed settlements, the defendants behind Treasure Your Success and Ambrosia Web Design will be banned from telemarketing and delivering robocalls. They also will be permanently prohibited from advertising, marketing, promoting, or offering for sale any debt relief product or service, or assisting others in doing so.

The FTC filed the initial cases against the operators of both companies in 2012 as part of a joint-agency crackdown on companies and individuals responsible for making millions of illegal “Rachel” robocalls pitching credit card rate-reduction services.

In its original complaint against Treasure Your Success, the FTC alleged that the defendants tricked consumers into paying up-front fees for as much as $1,593, using deceptive offers for credit card interest rate reduction services.

The complaint named two individuals, Willy Plancher and Valbona Toska, as well as their three companies, WV Universal Management, Global Financial Assist, and Leading Production. The defendants began marketing credit card interest rate reduction services in 2010. According to the FTC’s complaint, the defendants lured consumers by telling them they could substantially reduce their credit card interest rates, down to as low as three percent, in many instances. After collecting the upfront fees, however, consumers typically failed to get any interest rate reduction or any savings at all.

In November 2012, at the FTC’s request, a federal court halted the scheme and froze the defendants’ assets pending further court proceedings. The FTC subsequently amended its complaint to include new defendants and additional counts.

In addition to the other provisions of the settlement, the proposed order holds the defendants liable for $2,032,626, based on the amount of consumer injury in the case. Due to the inability of the individual defendants to pay redress, the monetary judgment has been suspended. However, if the defendants misstate or fail to disclose any of their material assets, the full amount of the judgment will be immediately due and payable.

The case against Treasure Your Success was filed in the U.S. District Court for the Middle District of Florida, Orlando Division. Litigation continues against: HES Merchant Services Company, Business First Solutions, VoiceOnyx Corp., Hal E. Smith, Jonathon E. Warren, Ramon Sanchez-Ortega, Universal Processing Services of Wisconsin, and Derek Depuydt.

According to the FTC’s complaint, the Ambrosia Web Design defendants delivered prerecorded calls that urged consumers they called to “press one” if they were interested in credit card interest rate reduction services. Consumers who pressed one were connected to a telemarketer who promised to get them very low interest rates or, in some cases, specific amounts of interest savings. The defendants often deceived consumers into thinking defendants were affiliated with a government program. If consumers agreed to sign up, the telemarketer got their credit card information, often charging an illegal advance fee before providing any service, the FTC alleged.

The FTC alleged that defendants then typically failed to deliver on their promises. In addition, the FTC charged defendants with failing to disclose their purported no-refund/no cancellation policy and billing some consumers without their express authorization. Finally, the FTC alleged defendants illegally called many phone numbers on the National Do Not Call Registry.

In June 2013, the FTC amended its original complaint to add charges of credit card laundering in violation of the agency’s Telemarketing Sales Rule. According to the FTC, in many cases, the defendants laundered credit card payments by processing them for other telemarketers through the Ambrosia defendants’ own merchant accounts; and arranging for other merchants to process credit card payments for the defendants through their accounts.

In addition to the bans on outbound telemarketing and robocalling, the proposed settlement order:

Bans the defendants from using certain payment processing methods, such as remotely created checks, that are often used to conduct fraud;
Prohibits the defendants from making misrepresentations regarding any “financial products or services;” and
Prohibits the defendants from misrepresenting the efficacy of a product or service.

The proposed settlement requires the defendants to liquidate virtually all of their assets, including a valuable watch and a sports memorabilia collection. It also includes a judgment of $8.3 million, which will be suspended if defendants comply with the terms of the settlement.

The settlement resolves the FTC’s charges against: 1) Ambrosia Web Design, LLC, also doing business as AWD; 2) Concord Financial Advisors LLC; 3) CAM Services Direct LLC; 4) AFB LLC; 5) Western GPS LLC; 6) Chris Ambrosia, individually and as a manager of Ambrosia Web Design LLC and CAM Services Direct LLC; and 6) LeRoy Castine, also known as Lee Castine, individually and as a manager of Ambrosia Web Design LLC, Concord Financial Advisors LLC, AFB LLC, and Western GPS LLC.

The case against Ambrosia Web Design was filed in the U.S. District Court for the District of Arizona.

Credit Card Rate-Reduction Robocallers Permanently Shut Down In FTC Settlements
http://www.insidearm.com/daily/collection-laws-regulations/collection-laws-and-regulations/credit-card-rate-reduction-robocallers-permanently-shut-down-in-ftc-settlements/
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Accounts Receivable Management

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