WASHINGTON (CBSDC/AP) — One of the nation’s largest consumer debt buyers will pay a $2.5 million civil fine to settle deception allegations.
The Federal Trade Commission says Michigan-based Asset Acceptance agreed to the penalty and to changes in the way it collects debt.
The company, which has been around since 1962, buys unpaid debts from credit card companies, health clubs and others. The FTC alleged that Asset tried to collect debt in some cases that wasn’t even owed. In other cases, the FTC says the company told consumers they owed a debt that may have been too old to collect because it was past the statute of limitations.
As part of the proposed settlement, Asset Acceptance will have to tell consumers that their debt may be too old to be legally enforceable and that it won’t sue to collect.
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