FTC Starts Sending Out Checks in Debt Collection Case

The Federal Trade Commission today announced that an administrator working for the agency is mailing 3,852 checks averaging $91.14 each to consumers who were deceived into paying unnecessary “convenience fees” to Jacob Law Group, PLLC, on behalf of debt buyer Security Credit Services, LLC.

In 2013, the FTC charged both companies with violating the FTC Act and the Fair Debt Collection Practices Act (FDCPA) for allegedly deceiving consumers by charging them an extra fee for paying by telephone, and falsely threatening to sue consumers in order to get them to pay.

The checks, which total more than $761,000, range in amount from $14.93 to $1,218.21 and will be mailed to consumers who paid convenience fees. The checks must be cashed within 60 days after they are issued.