Facts

The Federal Trade Commission and the People of the State of New York filed a civil action against National Check Registry LLC, Check Systems LLC, Interchex Systems LLC, American Mutual Holdings Inc., Goldberg Maxwell LLC, Morgan Jackson LLC, Mullins & Kane LLC, Buffalo Staffing Inc., Ecapital Services LLC fka Consumer Check Reporting LLC, Joseph Bella III, Diane Bella, and Luis Shaw, individually and as an officer of one or more of the corporate defendants, for alleged violations of the Federal Trade Commission Act, the Fair Debt Collection Practices Act, and the business laws of New York State.

PLAINTIFFS' CONTENTIONS:
Defendants allegedly participated in unlawful debt collection practices by, among other things threatening arrest and/or wage garnishment and going after phony debts.

DEFENDANTS' CONTENTIONS:
Defendants denied any wrongdoing.

Result

The parties reached a settlement, under which National Check Registry and the other defendants agreed to be permanently enjoined from further violations of the FTC Act, FDCPA, and New York state laws. Defendants were, among other things, banned from engaging in any debt collection activities or making misrepresentations relating to financial-related products or services. Defendants also agreed to pay $8,395,423.

Other Information

FILING DATE: June 23, 2014.