The Federal Trade Commission announced that it had reached a final settlement with Rumson, Bolling & Associates and owner David M. Hynes II over charges that the company engaged in illegal debt collection practices. The FTC’s complaint alleged that the debt collection agency used profane language, spoke to third parties about consumers’ debt, and threatened consumers with physical harm, arrest, garnishment, and so forth. The FTC also alleged that the company ripped off its clients by working on a contingency basis but not turning over money recovered to the creditors.
Hynes and his team operated under a variety of names, including Forensic Case Management Services, FCMS, Commercial Recovery Solutions, Commercial Investigations, Specialized Recovery, Joseph Steven & Associates, Specialized Debt Recovery, Commercial Receivables Acquisition, Commercial Recovery Authority, and The Forwarding Company.
The FTC settlement permanently bans the defendants from operating in the debt collection industry. The companies agreed to a $33.8 million judgment, but that judgment will be suspended because of the defendants’ inability to pay. Instead, they will pay $700,000.