Collection Agency Settles with FTC for $225,000

A Florida-based accounts receivable management firm recently agreed to settle Federal Trade Commission (FTC) charges that its debt collection practices ran afoul of federal law.

The FTC announced Friday that it had entered into a settlement with Oxford Management Services. Under the agreement, Oxford will pay a $225,000 civil fine and must adhere to the Fair Debt Collection Practices Act (FDCPA) going forward. The collection agency is based in Ft. Pierce, Fla., and has additional offices in Florida, New York and Pennsylvania.

In its allegations, the FTC noted that Oxford “falsely threatened that nonpayment of debt would result in garnishment of consumers’ wages, arrest, or legal action.” The Commission also said that Oxford did not adhere to time restrictions in placing collection calls, engaged in third party disclosure, and used profane or abusive language when dealing with some debtors.

After the FTC’s investigations, regulators levied a $1,060,000 civil penalty against the company, all but $225,000 of which was suspended. An attorney, Salvatore Spinelli, was also fined $1,060,000, but his entire fine was suspended due to inability to pay. The FTC did not make clear the connection, if any, between Oxford and Spinelli.

The full judgments will become due immediately if the defendants are found to have misrepresented their financial condition. The settlements also contain record-keeping and reporting provisions to allow the FTC to monitor compliance with the orders.