The 2nd Circuit recently upheld a choice finding two co-owners that are individual accountable for almost $11 million with their businesses’ violations of this Federal Trade Commission Act (FTCA) and Fair Debt Collection methods Act (FDCPA). The businesses’ company consisted mainly of gathering pay day loan debts that they had bought.
In FTC v. Federal Check Processing, Inc., et al., on summary judgment, the U.S. District Court for the Western District of the latest York discovered that the corporate defendants misrepresented that these people were using the federal government, falsely accused consumers of committing check fraudulence, threatened customers with arrest should they didn’t spend their debts, and often called friends, household, co-workers, or companies of debtors, “telling them that the debtors owed a financial obligation, had committed a criminal activity in failing woefully to spend it, and encountered feasible appropriate repercussions.” The region court held that the 2 specific co-owners and co-directors had been physically accountable for $10,852,396, the FTC’s calculation of this total quantities gotten by the business defendants from customers as a consequence of their acts that are unlawful. Continue reading 2nd Circuit upholds liability that is personal of