Grand Rapids, MI (February 24, 2012) – Since releasing 2011 litigation statistics, the WebRecon data team has had an opportunity to go back through the year’s complaints more thoroughly. In this process, we have been able to identify some omissions which inadvertently depressed the overall litigation counts for 2011.

Accordingly, we have revised our 2011 consumer litigation counts. Among the noteworthy changes you will see is that FDCPA complaints surpassed 12,000, and both TCPA and TILA litigation were significantly higher than previously reported. FCRA moved upward as well, but the change was less dramatic. Also, the total number of unique consumer litigants has surpassed 13,000.

The original release is attached for your reference.

Statistic: 2011 (Revised): 2011 (Original): Percent Change
FDCPA Cases 12,018 11,811 +1.75
FCRA Cases 1883 1838 +2.45
TCPA Cases 813 660 +23.18
TILA Cases 1680 1462 +14.91

Total Lawsuits 12,788 12,542 +1.96
Total Plaintiffs 13,024 12,640 +3.04

WebRecon LLC is in the process of transforming into the Bureau of Litigant Data, and as a result will be able to track even more useful data in the coming months and years, including data on non-filed litigation demand attempts. For more information on our consumer litigant batching, monitoring and searching service, please visit www.webrecon,com or call (616) 682-5327.

For more information, please contact:

Jack Gordon, CEO
WebRecon LLC, The Bureau of Litigant Data
Web: www.WebRecon.com
Email: admin@webrecon.net
Phone: (616) 682-5327

TALX, provider of Equifax Workforce Information Solutions and a leader in human resource, payroll and tax-related services, announced today an update to its employment verification service, The Work Number. This enhancement provides employers with the security, accuracy and compliance benefits of The Work Number during the service’s initial implementation period – by allowing them to provide data manually through The Work Number’s secure web-based interface to fulfill verification requests.

The Work Number helps employers bring transparency and security to their employment verification processes with automated, uniform and controlled information release. When fulfilling verification requests in-house, employers don’t always know the organization to which they are releasing their employee’s personal information. With The Work Number, all requesting organizations are verified and credentialed and a permissible purpose is required for each request – whether for a loan application, acquiring work history for a job applicant, or for state and federal aid applications. Employers streamline the process and gain peace of mind, and employees are able to get the credit and assistance they need to make life decisions.

Dann Adams, President of TALX, commented, “Investing in these upgrades for our clients and enhancing our employment verification service with a manual option reflects our ongoing commitment to providing best-in-class service. Now companies can benefit from the security and accuracy of The Work Number employment verifications from day one.”

Helping ensure compliance with Fair Credit Reporting Act (FCRA) regulations, The Work Number also tracks historical transactional data, and provides employees with visibility into verifications requests and the data that is provided for verifications. For both manual and automated verifications, employees can access their Employment Data Report (EDR), which includes a record of all verifications completed for that employee, and the information that was shared. Data submitted manually will also be included in the EDR.

Additional information on TALX employment verification services is available at http://www.talx.com/Solutions/Compliance/Verifications/.

About Equifax and TALX

TALX, provider of Equifax Workforce Information Solutions, is a leader in human resource, tax and payroll-related services. TALX is based in St. Louis and provides over 9,000 clients – including three-fourths of Fortune 500 companies – with web-based services including automated employment and income verification through The Work Number; workforce analytics; unemployment cost management; talent assessments; onboarding, tax credits and incentives; garnishments; paperless pay; I-9 management; and W-2 management.

Equifax is a global leader in consumer, commercial and workforce information solutions, providing businesses of all sizes and consumers with information they can trust. We organize and assimilate data on more than 500 million consumers and 81 million businesses worldwide, and use advanced analytics and proprietary technology to create and deliver customized insights that enrich both the performance of businesses and the lives of consumers.

Headquartered in Atlanta, Equifax operates or has investments in 17 countries and is a member of Standard & Poor’s (S&P) 500® Index. Its common stock is traded on the New York Stock Exchange (NYSE) under the symbol EFX. For more information, please visit www.equifax.com or www.talx.com.

SOURCE Equifax

Pam Stevens, TALX, Provider of Equifax Workforce Solutions, +1-314-214-7235, pstevens@talx.com

TransUnion’s quarterly analysis of Canadian credit trends found that the average consumer’s total debt (excluding mortgage) floated up to $25,960 in the fourth quarter of 2011, reversing the recent three-quarter trend of flat to negative growth, but in line with the historical seasonality of the year-end holidays. Despite the quarter over quarter increase of 1.4%, Canada is still experiencing decelerating annual growth falling below 1% for the first time since TransUnion began tracking credit trends in Q1 2004.

“The fourth quarter increase in average consumer debt is in line with seasonal patterns as consumer debt levels generally rise during the holiday shopping season,” said Thomas Higgins, TransUnion’s vice president of analytics and decision services. “The continued deceleration in the annual growth of total debt is the bigger story. We had witnessed a stabilization of total debt for the last three quarters, and the first and second quarters of 2012 should be quite revealing as we may see the first year-over-year decline in total debt since at least 2004.”

The holiday seasonality of increase average debt was consistent throughout Canada. All provinces experienced increases during the quarter except Quebec, which had been the one province bucking the national trend. On a year-over-year basis, only three provinces — British Columbia, Nova Scotia and New Brunswick — posted a higher annual growth rate in Q4 2011 versus Q3 2010-11.
Average Consumer Debt Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q/Q Chg Y/Y Chg
British Columbia $36,785 $36,649 $36,820 $36,588 $37,276 1.9% 1.3%
Alberta $34,020 $34,185 $34,081 $33,182 $33,613 1.3% -1.2%
Ontario $25,239 $24,869 $24,721 $24,540 $25,135 2.4% -0.4%
Quebec $17,424 $18,025 $18,269 $18,751 $18,376 -2.0% 5.5%

Consumer Debt – Quarterly/Yearly
Though total consumer debt has hit a seasonality increase, after three consecutive quarters of flat to negative growth, it is a new low in year-over-year growth (0.98%) since tracking began in Q1 2004 (Q4 2010: $25,709 vs. Q4 2011: $25,960). The new low is a continuation of the deceleration in total debt increases that began in Q4 2009. The previous four quarters showed year over year average debt increases as follows: 1.71% (Q3 2010-2011); 2.99% (Q2 2010-2011); 4.49% (Q1 2010-Q1 2011) and 5.60% (Q4 2009-Q4 Q2010).

Other key credit statistics, include:

* Canadian average credit card borrower debt (defined as the aggregate balance on all credit cards for an individual bankcard borrower) declined 1.49% year over year, but posted a modest increase of 0.61% quarter over quarter.
* Canadian lines of credit (LOC) borrower debt (defined as the aggregate balance on all LOC for an individual LOC borrower) increased 1.1% year over year and 0.64% quarter over quarter.
* Canadian installment loan borrower debt (defined as the aggregate balance on all installment loans for an individual installment loan borrower) decreased 5.3% year over year and 2.58% quarter over quarter.
* Canadian auto borrower debt (defined as the aggregate balance on all auto captive loans for an individual auto captive borrower) increased more than 9.7% year over year and 2.8% quarter over quarter.

Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011
Credit Cards $3,709 $3,688 $3,539 $3,590 $3,611 $3,633
Lines of Credit $32,649 $33,981 $33,762 $33,855 $34,122 $34,340
Installment Loans $22,731 $22,976 $22,431 $22,281 $22,340 $21,764
Auto Captives $16,183 $16,189 $16,181 $16,671 $17,283 $17,759

Consumer Delinquencies – Quarterly/Yearly

Delinquency levels continue to remain low across all major product categories. Year over year double-digit percentage declines were observed with credit card and installment loan delinquencies.

“Though Canadians’ debt levels have risen substantially the last several years, the increase has been tempered because of continued low delinquency levels. Lines of credit, by far the most popular credit vehicle for Canadians, currently stands at just 0.21%. Credit card delinquencies also are relatively low at 0.31%, and have dropped nearly 14% in the last year.”
Q4 2010 Q2 2011 Q3 2011 Q4 2011 Q/Q Chg Y/Y Chg
Credit Cards 0.36% 0.33% 0.32% 0.31% -3.1% -13.9%
Lines of Credit 0.20% 0.20% 0.20% 0.21% 5.0% 5.0%
Installment Loans 1.44% 1.27% 1.32% 1.27% -3.8% -11.8%
Auto Captives 0.11% 0.10% 0.11% 0.10% -9.1% -9.1%

Three Highest Delinquency Provinces
Credit Cards Lines of Credit Installment Loans Auto Captives
PEI 0.60% BC 0.28% ON 1.98% MB 0.28%
NB 0.49% ON 0.23% PEI 1.75% NS 0.15%
NS 0.51% PEI 0.23% NS 1.68% NB 0.17%

Three Lowest Delinquency Provinces
Credit Cards Lines of Credit Installment Loans Auto Captives
QC 0.18% NL 0.12% QC 0.50% QC 0.06%
BC 0.31% QC 0.13% NL 1.07% AB, SK & NL 0.08%
SK 0.29% NB 0.14% SK 1.13% BC 0.07%

Consumer Bankruptcies – Quarterly/Yearly

Consumer bankruptcies in Canada continue to fall back to historical levels after the record year in 2009, posting double digit year-over-year decreases in all of the past seven quarters (Q1 2010-Q3 2011).
2004 2005 2006 2007 2008 2009 2010 2011
Q1 5.23% -3.24% -1.83% -3.74% 2.88% 34.63% -15.08% -14.37%
Q2 -0.15% 3.13% -10.35% 2.23% 7.39% 41.25% -21.69% -16.52%
Q3 -2.61% 1.43% -11.08% 7.89% 16.78% 41.10% -31.30% -15.70%
Q4 -1.59% -0.39% -6.05% 1.60% 27.40% 0.34% -10.41%

Based on tracking from the Office of the Superintendent of Bankruptcy, year to-date October reported bankruptcies have been down significantly the past two years across all regions. Ontario showed the largest decreases in both 2010 and 2011, while the East has been one of the lowest each year. Quebec was the only single digit decrease in 2011.
2004 2005 2006 2007 2008 2009 2010 2011
Canada -0.35% 0.31% -7.15% 2.22% 10.44% 34.22% -22.02% -16.02%
West -7.83% -5.21% -20.18% -8.76% 8.16% 57.00% -15.91% -15.69%
Ontario 1.46% 1.93% -7.28% 8.40% 12.18% 35.06% -30.17% -24.01%
Quebec 2.46% 0.07% 5.10% 3.78% 10.68% 24.68% -19.61% -8.73%
East 6.77% 8.96% -8.27% -1.82% 7.46% 19.94% -8.91% -10.79%

TransUnion’s Market Trends
TransUnion’s Market Trends is an in-depth, full sample solution that provides statistical information every quarter from TransUnion’s national consumer credit database, culled from anonymous credit files. Each Canadian consumer record contains hundreds of credit variables that illustrate consumer credit usage and performance. By leveraging Market Trends, customers from a variety of industries can analyze industry trends over an entire business cycle, helping to understand consumer behaviour in different geographic locations throughout Canada.

About TransUnion
As a global leader in information and risk management, TransUnion creates advantages for millions of people around the world by gathering, analyzing and delivering information. For businesses, TransUnion helps improve efficiency, manage risk, reduce costs and increase revenue by delivering high quality data, and integrating advanced analytics and enhanced decision-making capabilities. For consumers, TransUnion provides the tools, resources and education to help manage their credit health and achieve their financial goals. Through these and other efforts, TransUnion is working to build stronger economies worldwide. Based in Burlington, Ontario, with global headquarters located in Chicago, Illinois, TransUnion provides local service and support throughout Canada. Visit www.transunion.ca to learn more.

Contact
Dave Blumberg
TransUnion
E-mail: Email Contact
Telephone: 1 312 985 3059/ 312 972 6646

New York City-based Plaza Associates, a financial collections agency, acquired ACB American, a Covington, Kentucky-based collection agency to form Plaza Recovery. The merged company will invest more than $2.5 million to expand its North Kentucky location from 25,000 to 43,000-square-feet, and add up to 250 jobs to its workforce.

This year both companies celebrated their 50 anniversary. Plaza Associates concentrated on the financial sector and ACB focused on medical debt collections. The company will operate as Plaza Recovery for its financial sector clients, but will do business as ACB Recovery for its medical client base.

“The willingness and efficiency demonstrated by the state and city to work and partner with our companies was impressive,” said Tony Faeth, former owner of ACB American and vice president of Plaza Recovery and ACB Recovery. “They took the time to listen and gain an understanding of our challenges as a business and as employers. It didn’t take long to confirm our decision to stay and grow in Kentucky. Really, in the end, it reaffirmed decades of hard work we’ve put in here in Covington and the jobs we’ve been able to create along the way.”

To persuade the newly formed firm to choose Covington as its home base, the Kentucky Economic Development Finance Authority approved tax incentives of up to $1.2 million through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the term of the agreement through corporate income tax credits and wage assessments by meeting job and investment targets.

Local officials praised the local firm for persuading its larger partner to relocate to Kentucky. “Plaza Recovery is the collective result of many hard-working individuals, especially Tony Faeth, who drew the attention of a larger company through a commitment to business success and to the city of Covington over the past several decades,” said Covington Mayor Chuck Scheper. “We are thrilled that the company recognized the multiple benefits of Covington and selected it as the expansion site. This project exemplifies the virtues of Covington’s strategy of courage plus vision equals growth.”

All contents copyright © 2012 Halcyon Business Publications, Inc.

The Consumer Financial Protection Bureau has issued a proposal under which it would supervise nonbank providers of consumer reporting and consumer debt collection services considered to be “larger participants” in the markets for those services.

The proposal defines as “larger participants” companies with more than $7 million in annual receipts from consumer reporting and companies with more than $10 million in annual receipts from debt collection. Comments on the proposal are due by April 17, 2012.

Companies likely to qualify as larger participants should promptly review their practices and procedures for federal law compliance with experienced counsel in anticipation of CFPB examinations, which are expected to begin this summer. Lawyers in Ballard Spahr’s Consumer Financial Services Group are currently assisting clients in preparing for the expected CFPB examinations.

The CFPB’s larger participant supervision program will represent the first time that nonbank companies engaged in consumer reporting or debt collection are subject to examination for federal law compliance by a federal regulator. In addition to examining their compliance with federal laws such as the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, and the Electronic Fund Transfer Act, such companies should expect the CFPB to scrutinize their practices under “unfair, deceptive or abusive” standards.

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB has authority to supervise, regardless of size, nonbank providers of residential mortgage loans and certain related services, payday loans, and private education loans. The Dodd-Frank Act also gave the CFPB supervisory authority over nonbank providers considered to be “a larger participant of a market for other consumer financial products or services.”

Highlights of the proposal, published on February 17, 2012, include:

* The definition of “consumer debt collection” is intended to include collection activities of third-party collectors, law firms, attorneys, and debt buyers. The CFPB rejected recommendations from consumer groups that it define third-party collectors, collection law firms, and debt buyers as separate markets. According to the CFPB, that decision was based, in part, on a lack of available data for it to use to devise separate tests.
* In the background discussion, the CFPB notes that the proposal does not apply to depository institutions or credit unions but that such entities could “see changes in the quality and pricing” of debt collection services. We expect collection documentation and affidavit execution to be a major CFPB focus when examining larger participants involved in debt collection. Any CFPB rulemaking or guidance that results from that focus could significantly affect the ability of depository institutions and credit unions to collect consumer debts. (Ballard Spahr has created the Collection Documentation Task Force to assist clients with the rapidly developing spread of documentation-related challenges, from mortgage foreclosure processes to the collection of credit card, student loan, and other types of consumer debts.)
* A company engaged only in the collection of commercial debts would not be involved in “consumer debt collection.” In addition, the annual receipts used to determine whether a company that engages in the collection of both consumer and commercial debts is a larger participant would not include receipts from the collection of commercial debts.
* Providers of “consumer reporting” include any company engaged in “collecting, analyzing, maintaining, or providing consumer report information or other account information used or expected to be used in any decision by another person regarding the offering or provision of any consumer financial product or service.” The definition is intended to reach “specialty consumer reporting agencies, such as those specializing in consumer check verification and payday lending transactions.” Most significantly, the CFPB’s definition does not appear to be limited to companies that qualify as a “consumer reporting agency” under the Fair Credit Reporting Act.
* A provider of “consumer reporting” would not include a company that only provides consumer reports for use in decisions involving employment, government licensing, or residential leases. In addition, the annual receipts used to determine whether a company that provides consumer reports for such purposes and purposes covered by the CFPB’s “consumer reporting” definition is a larger participant would not include receipts from reports used for non-covered purposes.
* The “annual receipts” used to determine whether a company is a larger participant means “total income” for income tax purposes and does not include investment income. The calculation of a company’s annual receipts includes the annual receipts of its affiliates from debt collection or consumer reporting activities.
* The CFPB estimates in the background discussion of the proposal that its larger participant thresholds would bring under its supervision approximately 175 entities engaged in debt collection and fewer than 30 credit bureaus. It is unclear how reliable those estimates are.
* The Dodd-Frank Act authorizes the CFPB to establish a registration system for nonbank “covered persons” and, in the background discussion, the CFPB indicates that “it is contemplating a future rulemaking to establish a nonbank registration program, which could be used to gather data to support subsequent larger participant rulemakings and their implementation.” Since the CFPB has not yet begun that rulemaking, we do not expect a registration system to be in place before the CFPB begins examining larger participants.
* According to the background discussion, the CFPB initially expects to use “various data sources, including publicly available data,” to identify larger participants. Under the proposal, the CFPB can require a company to submit “such records, documents, and information as the [CFPB] may deem appropriate to determine whether a person is a larger participant.” A company would be able to dispute the CFPB’s determination that it is a larger participant by following the procedures outlined in the proposal.
* Once a nonbank company qualifies as a larger participant, it would be considered a larger participant for not less than two years from the first day of the tax year in which the company last met the applicable threshold.
* In the background discussion, the CFPB notes that a nonbank company engaged in consumer reporting or debt collection activities that did not qualify as a larger participant would still be subject to the CFPB’s regulatory and enforcement authority and could be subject to its supervision authority if the CFPB found that the company was engaging in or had engaged in conduct that presents risks to consumers. The CFPB further notes that it also has supervision authority over service providers to larger participants, such as “data aggregators, law firms, account maintenance services, call centers, data and record suppliers, and software providers.” Such service providers would be subject to the CFPB’s supervision authority regardless of their size.

According to the background discussion, the CFPB anticipates further rulemaking to define larger participants in other markets. In its notice published in June 2011 soliciting comments for developing the proposal, the CFPB had identified six potential markets in which “larger participants” would be subject to CFPB supervision. In addition to debt collection and consumer reporting, those markets are (1) consumer credit and related activities, (2) money transmitting, check cashing, and related activities, (3) prepaid cards, and (4) debt relief services. The CFPB has not indicated when further rulemaking to define larger participants in other markets is likely to occur. The CFPB has until July 21, 2012, to issue an initial final rule defining larger participants.

Copyright © 2011 by Ballard Spahr LLP.

MUMBAI & NEW YORK–(BUSINESS WIRE)–Collections industry executives will be placing an increased emphasis on developing compliance controls and improving the customer experience in the next year, according to a survey conducted by Firstsource Solutions. The survey was conducted at the 15th Annual Debt Buyer’s Association International Conference, held recently in Las Vegas.

An overwhelming number of debt industry executives (70 percent) said they anticipate that the Consumer Financial Protection Bureau (CFPB) will impose significant changes on the collections industry over the next year. Forty percent of respondents stated that these changes will greatly influence their focus on implementing compliance controls across their organizations. Nearly 75 percent of executives surveyed said addressing compliance-related issues will be the top priority for the collections industry in 2012.

“The CFPB will undoubtedly create new rules and regulations for the collections industry,” said Tim Smith, Senior Vice President, Banking Financial Services & Insurance, Firstsource. “Instead of simply bracing for these changes, collections industry executives are moving compliance to the top of their agendas and developing compliance controls and initiatives that will allow them to better navigate this new regulatory environment.”

Survey respondents indicated that improving customer experience would be a key strategic priority for them in the coming year. Over 60 percent of industry executives at the conference stated that their organizations would increase the number of training programs for collectors so that they can sharpen their skills in dealing with customers during the entire collections process. In further support of this trend, over 80 percent of respondents said delivering a high quality customer experience is just as important as collecting.

“We’re seeing a real sea of changes in the industry in terms of making the customer the number one priority,” said Smith. “Our findings show that collection executives are making customer experience just as important as collecting itself. This is not just lip service but a true commitment to making real changes to ensure customers are more satisfied and have a better overall experience.”

Respondents also noted the benefit of leveraging social media in collections with nearly 75 percent agreeing that it is useful in the overall collections process. Over 85 percent of collections executives said they use social media to monitor online customer conversations. Nearly 30 percent said the best way to deal with negative customer feedback online was to determine the specific comments which warranted a response.

About the Survey

The survey of 100 professionals in the banking and credit card industries was conducted by Firstsource at the 15th Annual Debt Buyer’s Association (DBA) International Conference on February 7-9, 2012 in Las Vegas. Respondents included executives across the debt buying industry including major credit card issuers, banking and payments professionals and collections companies.

About Firstsource

Firstsource (NSE: FSL, BSE: 532809, Reuters: FISO.BO, Bloomberg: FSOL@IN) is a global provider of customised BPO (business process outsourcing) services to the Banking & Financial Services, Telecom & Media and Healthcare sectors. Its clients include FTSE 100, Fortune 500 and Nifty 50 companies. Firstsource has a “rightshore” delivery model with operations in India, US, UK, Philippines and Sri Lanka. (www.firstsource.com).
Contacts

CJP Communications
Amy Fathers, 212.279.3115 ext. 209
afathers@cjpcom.com

CHICAGO, IL, Feb 22, 2012 (MARKETWIRE via COMTEX) — Since 2006, complaints to the Federal Trade Commission (FTC) have doubled, forcing Americans to take debt collectors to court for violations of the Fair Debt Collection Practices Act, and win.

There are thousands of untold stories that show that debt collection harassment is a frequent occurrence, some stories so bad that there is no line from which some collectors will go so low.

Fair Debt Helpers, a service of Macey Bankruptcy Law, has been helping consumers fight back against collection agencies since 2007. “We’ve recovered over $5,000,000 against collection agencies nationwide,” says, Jeffrey Hyslip a Managing Attorney at Macey Bankruptcy Law.

Debts are a legal responsibility that must be paid off. It is the job of a collector to have their facts straight and contact you under the guidelines of the FDCPA.

The Fair Debt Collection Practices Act (FDCPA) provides a mechanism to fight back against the collection agencies. “If collection agencies violate the law, it’s important to know your rights. As a victim you can take legal action to implement those rights and force the collection agencies to pay your attorney fees,” says Hyslip.

Macey Bankruptcy Law is the largest and most experienced consumer bankruptcy practice in the country. In 2007, the attorneys started a consumer protection department — Fair Debt Helpers.

“Fair Debt Helpers was created because we got fed up with collection agencies harassing consumers. We wanted to assist clients in enforcing their rights under the FDCPA,” Hyslip concludes.

Helping more consumers nationwide, Macey Bankruptcy Law now represents all consumers, dealing with bankruptcy and harassing creditors. If you think you are being harassed, you don’t need to handle it alone. Call Fair Debt Helpers at 866-339-1156

For more information about Macey Bankruptcy Law please visit www.maceybankruptcylaw.com

Macey Bankruptcy Law is a service of Macey & Aleman has been representing consumer debtors in bankruptcy cases since 1994. Through tireless hard work, dedication to customer service, and commitment to fair and reasonable fees, Macey Bankruptcy law has been able to help thousands of hardworking Americans get the debt relief they need.

SOURCE: Macey Bankruptcy Law

Copyright 2012 Marketwire, Inc., All rights reserved.

The Federal Trade Commission acted this month to halt the operations of a California-based company that it claims defrauded consumers out of $5 million in more than 17,000 transactions.

The court filings [PDF], a complaint seeking a temporary restraining order and freeze of company assets, claim that Orange County-based American Credit Crunchers LLC and affiliate Ebeeze LLC obtained personal information that people had entered in online payday loan applications.

Workers in Indian call centers then contacted consumers and claimed they were delinquent on a loan. The callers often impersonated law enforcement or government officials and threatened consumers with lawsuits and arrest, according to the filings. In reality, consumers did not owe the callers money. Victims of the scam often paid the company several hundred dollars.

The owner of the companies, Varang K. Thaker, could not be reached for comment.

The company assets have been temporarily frozen. If a judge finds in the FTC’s favor, the assets will be permanently frozen and redistributed to victims of the scam. The FTC also has passed along information on the case to Indian law enforcement, who theoretically could pursue legal action against the overseas call centers, said Elizabeth Scott, an attorney for the FTC’s Midwest region.

Mark Merola, who lives in a Florida retirement community, was one of the victims. The company called him continually, said his wife, Janice.”They said they were going to send cops and have him arrested,” she said.

Although Merola did not think he owed any money on a loan, he became scared and paid $523.87, according to the filings.

The threats of arrest were a red flag that the company was operating a scam, because no one can be arrested for outstanding debts, said Tena Friery, research director at the Privacy Rights Clearinghouse, a nonprofit that aims to educate consumers about privacy issues.

The FTC doesn’t yet know how the debt collection company obtained consumers’ personal information. Legitimate sites could have been hacked, or fake payday lending websites could have lured unsuspecting consumers.

But the information also might have been sold to American Credit Crunchers. Many payday lending websites are operated by lead generators, which are marketing firms that do not process loans. They simply sell application data to the highest bidder, said Jean Ann Fox, director of financial services for the Consumer Federation of America, an advocacy organization. Because they are not lenders, they don’t have to be licensed and don’t face the same regulations, she added.

“This is the Wild West of the loan market,” she said.

Copyright 2012 North County Times. All rights reserved.

MINNEAPOLIS, Feb. 22, 2012 /PRNewswire-USNewswire/ — ACA International, the association of credit and collection professionals whose membership includes third-party debt collectors, asset buyers and collection attorneys, offers helpful resources for active United States military personnel.

“We sincerely appreciate the sacrifices and service of the courageous men and women of our military who have and continue to put their lives on the line to protect our country and the freedoms we enjoy,” said ACA International CEO Pat Morris. “The Servicemembers Civil Relief Act (SCRA) is important in that it grants special privileges regarding debt and debt collection so soldiers can focus on the immediate task at hand during active duty.”

The SCRA allows certain active military personnel and, in a few cases, nonservice members, to suspend or postpone certain civil obligations as to not worry about financial concerns at home. A lender, creditor or insurer is prohibited by law from taking any adverse actions against military personnel because they exercised their rights under SCRA. Other important areas covered under the SCRA include:

* Default judgments
* Stay of proceedings
* Statutes of limitations
* Cap on interest rates
* Eviction proceedings
* Installment contract for property purchase
* Mortgages
* Terminating home or vehicle leases

The SCRA can only be exercised while engaged in active duty, including full-time training; annual training duty; and attendance at a service school while in active military service. Generally, the SCRA applies only to obligations and liabilities incurred prior to entering active duty and typically not those incurred during active duty.

For more information about the SCRA and rights of military personnel when it comes to debt collection, visit www.AskDoctorDebt.org, a free and valuable consumer-focused financial literacy resource. Available in both English and Spanish, visitors are not asked to register, provide any personal information or required to pay for use.

“The effective management of credit and accounts receivable is important to the national and state economies,” said Morris. “Third-party collectors provide an essential service and are actively engaged in their local communities as employers, volunteers, philanthropists and taxpayers.”

ACA International is the comprehensive, knowledge-based resource for success in the credit and collection industry. Founded in 1939, ACA brings together more than 5,000 members and their employees in the US and abroad, including third-party collection agencies, asset buyers, attorneys, creditors and vendor affiliates. ACA International establishes ethical standards, produces a wide variety of products, services and publications, and articulates the value of the credit and collection industry to businesses, policymakers and consumers. For more information about ACA International, visit www.acainternational.org.

Contact: Mark Schiffman, PR Director
(952) 259-2124 or schiffman@acainternational.org

SOURCE ACA International

ACA International member donated more than $30,000 and 300 employee hours to charity last year.

American Profit Recovery, an ACA International member agency in Massachusetts with additional offices in Michigan and North Carolina, spent many hours out of the office and in the community in 2011. The company raised and contributed more than $30,000 to a host of charities in 2011, including the American Cancer Society’s Making Strides Against Breast Cancer, the ACA International Education Foundation, ARMing Heroes, Ronald McDonald House Charities, Autism Speaks and The Leukemia & Lymphoma Society. In all, 23 charities received donations from American Profit Recovery in 2011.

The company also contributed more than 300 volunteer hours from employees and management. In all, American Profit Recovery participated in 10 service projects throughout the year, including a year-end holiday tradition of purchasing and delivering goods and toys to families in need. The company’s Adopt a Family program caps off a year of community service at the time it’s needed most.

“We are not only investing in the communities we live in, but we are investing in a culture of community service and giving back,” Jeff DiMatteo, a partner at American Profit Recovery, said. “This culture helps us raise more money for the causes we care deeply about and fosters a greater sense of the greater good and teamwork here.”