Collectors, the FTC Wants You to Know: Do Not Buy, Sell, or Collect on These Debts

Just posted on the Federal Trade Commission blog is this, by Christopher Koegel, Assistant Director, Division of Financial Practices:

We’ve learned that portfolios of alleged payday loan debts serviced by AMG Services are circulating in the debt collection marketplace. The alleged lenders are USFastCash, 500FastCash, OneClickCash, Ameriloan, United Cash Loans, AdvantageCashServices, and StarCashProcessing. But these alleged debts are bogus. The consumers do not owe the alleged debts, and the lenders have never authorized, assigned, or sold any of their loans for third-party collection.

There can be no doubt that these loans are bogus. The former general counsel of AMG Services signed a declaration under penalty of perjury in the FTC’s lawsuit against Delaware Solutions, stating that USFastCash, 500FastCash, OneClickCash, Ameriloan, United Cash Loans, AdvantageCashServices, and StarCashProcessing loans have never been placed with, or sold to, any third party for collection.

So, what does all of that mean? If you are in possession of one of these portfolios, do not attempt to collect these debts, or try to sell the portfolio to anyone else. If someone tries to sell a portfolio of these debts to you, do not buy it.

If you do attempt to collect on these debts or sell them to someone else, you will likely be violating either the Fair Debt Collection Practices Act, the Federal Trade Commission Act, or both. Indeed, the FTC has already sued one debt collection business for, among other things, continuing to collect on one of these portfolios after being informed by AMG that the loans were bogus.

If you have any information about portfolios of purported USFastCash, 500FastCash, OneClickCash, Ameriloan, United Cash Loans, AdvantageCashServices, or StarCashProcessing payday loan debts being bought, sold, collected upon, or peddled, please contact Michael Goldstein at mgoldstein@ftc.gov or 202.326.3673.