From the Rockford Register Star (local daily)...
Collection firm gets more time to pay
By SARAH ROBERTS, Rockford Register Star
ROCKFORD Capital Acquisitions and Management Co. Received a week's extension to pay $300,000 to settle charges of abusive and deceptive collection practices after company attorneys said they weren't given enough notice by the federal government.
Last week, the Federal Trade Commission filed a 13-count complaint in Rockford, accusing CAMCO of systematic and widespread violations of the Fair Debt Collection and Practices Act.
The company settled the charges by agreeing to adopt stringent record-keeping policies and pay $300,000 in civil penalties. The debt collection company is at 303 N. Main St.
The company had until Monday to pay the fine, but the FTC extended the deadline to April 5. A commission representative said the extension was granted as a courtesy to CAMCO attorneys.
An attorney with the Chicago law firm representing CAMCO said the firm raised hell with the U.S. Attorney's office and the FTC that the company did not know the settlement had been entered in court Friday until media inquiries began later that day. They didn't give us a notice they were going to court to have it entered. Not knowing when it started, we missed a couple of days (on the deadline), said Mike Hayes of Bell, Boyd and Lloyd.
Nadine Samter, FTC attorney, said the commission notified CAMCO attorneys twice: when it first sent its case to the U.S. Department of Justice for review and the day it filed the complaint in court.
The judge's decision to enter the settlement the same day was unusual, Samter said, but CAMCO attorneys were aware it would be entered within two weeks. We didn't do anything out of the ordinary, she said. We haven't had this problem with any other company.
Hayes said he expects CAMCO to meet the extended deadline.
The commission's complaint was the first regulatory action taken against the company. CAMCO did not admit wrongdoing in the settlement.
CAMCO's collection letters to consumers must include information about the federal law and how consumers can file complaints.
Company employees must also sign statements that they will comply with consumer protection laws.
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