FTC Action: Cohen Banned For Life...Kinda Like Pete Rose...?

[David A. Szwak]

FTC Enforces FDCPA

Violating the Fair Debt Collection Practices Act can cost money - and a career. California-based D.C. Credit Services, Inc. and the company's co-owner have agreed to pay $300,000 in civil money penalties for violations of the FDCPA. The co-owner, David Cohen, is also barred from debt collection activity.

Violations involved 1997 FCRA amendments that impose accuracy requirements on debt collectors and others who furnish information to credit bureaus. The FTC investigation revealed evidence that the company was furnishing false information to the bureaus and also failed to correct previously-furnished information that was inaccurate or incomplete.

Collection techniques - the more classic violation of FDCPA - were also an issue. The company was charged with using harassing or abusive language when talking to consumers, threatening to communicate false information, and furnishing information to credit bureaus without disclosing that the consumer had disputed the information being reported.

In addition to the penalties and the occupational ban, the company is required to correct all false or incorrect information previously reported to credit bureaus.