Debt Collector to Pay $1 Million for Illegal Text Messages

Posted on September 29, 2013 by Noah Wood

A California debt collection company must pay $1 million to settle claims by the Federal Trade Comission related to using text messages in an unlawful attempt to collect debts. The California company, using the names National Attorney Collection Services, Inc. and National Attorney Services, LLC, are controlled by Archie Donovan. 

The illegal text messages falsely protrayed the company as a law firm, and threatened to sue consumers and garnish their wages. The debt collector also illegally revealed information about debts to vicitim's family members, friends, and employers. In collecting for payday lenders, the company threatened consumers with imprisonment or arrest.

In addition to the $1 million penalty, the settlement requires the company to sending the illegal text messages and obtain permission from the recipients prior to sending text messages.