Search Site
Menu
Texas Court Orders $2 Million Penalty for Debt Collector

A federal court in Texas ordered Timothy L. Ford, president of Commercial Recovery Systems, Inc., to pay $2 million in penalties for a violation of the Fair Debt Collection Practices Act. The verdict came at the request of the Federal Trade Commission.

Ford was accused of falsely threatening debtors, a significant violation of the FDCPA. The U.S. Department of Justice filed the case on the FTC’s behalf in January 2015, alleging collectors from CRS falsely claimed the company would sue its debtors, levy their bank accounts, garnish wages and/or seize their assets unless they provided payment.

As of April 2016, Ford and CRS have been banned from the debt collection industry due to a permanent injunction issued by the U.S. District Court for the Eastern District of Texas. A former CRS vice president, David Devany, is also banned from the industry after settling with the FTC in September 2016.

This latest action is a part of Operation Collection Protection, which has been an ongoing federal, local and state crackdown on deceptive and abusive debt collectors. The effort is focused on illegal and unethical practices happening in the industry.

Consumer protections available against abusive creditors

Although people are expected to meet their financial obligations in terms of money owed to creditors, they are also protected under a variety of state and federal laws against abuse on the part of debt collectors. If you have been threatened or otherwise hassled or abused by one of these agencies, contact a trusted Dallas attorney at Whistleblower Law for Managers to learn more about your options.

Honors
Our Office
  • Dallas Office
    4514 Cole Ave
    #600
    Dallas, Texas 75205
    Phone: 214-306-8045
    Fax: 469-729-9926
Testimonials
  • "Steve Kardell was terrific in representing me in some very adversarial discussions with Citigroup and also later represented me in my testimony before the Financial Crisis Inquiry Commission."  -Richard Bowen, Citigroup Whistleblower

  • "Never thought my career would end like it did after 30 years of service. I was part of the first round of the so called reduction of force. I asked myself how can I be part of this with 30 years of seniority. How did they pick these 90 plus employees? Now, the culture of this organization made you question every decision they made. It wasn’t what you knew it’s was a culture of who you know. Nonetheless, I did not accept their severance package. I immediately starting looking for an attorney who would take on my case. After the initial call to Steve I had hope again. He was open and honest about everything and reassured me he would do his best for me, and he did. I had an awesome outcome. Thanks Steve you’re the best."  -S.S.

  • "Reaching out to Steve Kardell was the best decision I made. His ability to provide immediate insight and direction was very powerful, and a huge relief during a very stressful time period. For anyone struggling with a whistleblower situation, I would highly recommend at least speaking with Steve. After a 10 minute call with him, I had a better understanding of what I was dealing with. Even better, he gave me some immediate hope. In the end Steve did a better job than I thought was possible. Steve was able to get in contact with people in my organization, that I didn’t have access to. Because of his years of experience, he already has contacts in many organizations in Dallas. The entire situation was handled peacefully. I was impressed by his ability to “keep the peace”–rather than creating a battle with the organization. The reason I didn’t reach out to a lawyer initially, was because I thought it would mean an immediate end to any hope of a positive relationship with the company. Steve was able to address my concerns, and in the end I was able to continue to work for them."  -KS

FOLLOW US
Facebook Twitter Linkedin RSS Feed JD Supra