WASHINGTON (AP) — A debt collection operation that involved text messages and collectors posing as attorneys has led to a $1 million settlement with the federal government.
The Federal Trade Commission says a debt collector in Glendale, Calif., agreed to pay the civil penalty in order to settle FTC charges. The commission alleged that Archie Donovan and the two companies he controls — National Attorney Collection Services, Inc. and National Attorney Services LLC — used text messages and phone calls, and failed to disclose that they were debt collectors, which is against the law.
The FTC also says Donovan and his companies falsely threated lawsuits and illegally revealed debts to the consumers' family members, friends and co-workers.
A call to Donovan seeking comment was not immediately returned.