FTC and State AG Launch Joint Fraud Action on Collection Agency

Florida Attorney General Pam Bondi announced late last week that her office has filed a law against a debt collection agency for allegedly targeting consumers who were victims of previous frauds or scams. The Federal Trade Commission filed a parallel lawsuit against the firm in the U.S. Southern District Court of Florida.

The lawsuits allege that Consumer Collection Advocates, Corp. (CCA) would contact victims of fraud or scams and guarantee to recover the lost money. After charging an upfront fee, the company typically would not deliver on its promises. The Attorney General’s Office, the Florida Department of Agriculture and Consumer Affairs, and the Better Business Bureau received 115 complaints about CCA’s practices.

“This company allegedly took advantage of consumers who had already been exploited in previous scams, and today we have taken steps to stop this business from unlawfully operating in Florida,” said Attorney General Pam Bondi.

CCA is licensed in Florida as a collection agency, but is not accused of violating any debt collection laws. The company is also registered in the state as a commercial telemarketer. CCA’s main business involves advertising and selling services to victims of financial scams and assisting in the return of monies lost in various financial schemes.

The firm is accused of violating Florida’s Deceptive and Unfair Practices Act, the FTC’s Telemarketing Sales Rule, and the Florida Telemarketing Act.

Both lawsuits seek a temporary injunction against CCA that would prevent it from:

• Receiving upfront payments from consumers seeking to recover funds lost in telemarketing scams;
• Misrepresenting the nature and the efficacy of defendants’ fee recovery services;
• Misrepresenting any affiliation with governmental organizations; and
• Violating any provision of FDUPTA, the Telemarketing Sales Rule, or the Florida Telemarketing Act.