Last week, the Federal Trade Commission settled with the remaining defendants in a case that drew the largest civil penalty ever imposed on a debt collector. 

The settlement was negotiated by the Department of Justice and the FTC with individual defendants Albert Bastian and Keith Hurt III, formerly of Academy Collection Service, Inc.  Academy, and its owner, previously settled with the FTC for $2.25 million.

According to the FTC complaint, Bastian and Hurt allegedly misled, threatened and harassed consumers, disclosed consumers’ debts to third parties and deposited post-dated checks early, in violation of the Fair Debt Collection Practices Act.

In what some may consider to be karmic justice, the recent settlement imposed stiff penalties of $375,000 and $300,000 on defendants Bastian and Hurt, respectively, and barred both from using abusive collection practices. However, based on their lack of ability to pay, the judgments were suspended on payment of $7,500 each.  If Bastian and Hurt are determined to have misrepresented their poor financial condition, the full amount of the judgments will become due.

Good work, FTC!