BAM Financial, LLC

Agency: Federal Trade Commission (FTC)Washington
Description:

On July 14, 2016, the Federal Trade Commission (FTC) permanently banned these companies from engaging the debt collection business after charging the businesses with using false threats and other illegal collection tactics.

The complaint fined in October 2015, charged the company with collecting payments from consumers through using intimidation, lies, and other unlawful debt collection practices. According to the complaint the company bought consumer debts and collected payment on their own behalf by threatening consumers with lawsuits, wage garnishment and arrest, and by impersonating attorneys or process servers. They also unlawfully disclosed debts to, or harassed third parties, failed to identify themselves as debt collectors, and failed to notify consumers of their right to receive verification of the purported debts.

The stipulated final order entered into on July 14, 2016, bans the businesses from debt collection activities and prohibits them from misrepresenting material facts about financial-related products and services. The order also bars them from profiting from consumers’ personal information and failing to dispose of it properly. The order imposes a $4,802,646 judgment that will be partially suspended upon the surrender of certain assets and requires payment of $59,207 by Luis O. Carrera.

Details of the action can be found here.