The federal government has reached a settlement with a big debt collection company for alleged "deception."     

            One of the nation’s largest consumer debt buyers and collectors, Michigan-based Asset Acceptance, has agreed to pay a $2.5 million civil penalty to settle charges it violated the Fair Debt Collection Practices Act and the Fair Credit Reporting Act.

            According to the Federal Trade Commission, Asset Acceptance was charged with nine separate violations including:

• MISREPRESENTING THAT CONSUMERS OWED A DEBT WITHOUT SUBSTANTIATION
•  MAKING FALSE REPRESENTATIONS TO COLLECT DEBT
• FAILING TO DISCLOSE THAT THE DEBTS ARE TOO OLD BE LEGALLY ENFORCEABLE
• REPEATEDLY CALLING THIRD PARTIES WHO DIDN'T OWE A DEBT
• INFORMING THIRD PARTIES ABOUT A DEBT

            The FTC believes most consumers do not know their rights when it comes to the collection of old debts, and what a company can legally do to collect.

To find out more about the FTC settlement with Asset Acceptance:  www.ftc.gov/opa/2012/01/asset.shtm 

For the complete Fair Debt Collection Practices Act:   www.ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf

Understanding your rights when it comes to old debts:  www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt144.shtm