The Federal Trade Commission (FTC) has reached a settlement with five California companies that ban the businesses from participating in the debt collection industry.
The five companies — BAM Financial LLC, d/b/a as West and Associates, Chelsea & Associates, and Chelsea Financial; Everton Financial LLC, also d/b/a West and Associates; and Legal Financial Consulting LLC, also d/b/a West and Associates Services — were charged by the FTC last October with using false threats and other illegal collection practices.
The companies were charged under the FTC’s “Operation Collection Protection,” a coordinated state and federal enforcement initiative aimed at stopping deceptive and abusive debt collection practices. The program was launched last November and has resulted in more than 100 enforcement actions to date.
The final order against the California companies bans them from debt collection activities and prohibits them from making any misrepresentations about financial products or services. In addition, the order imposes a $4.8 million judgment that will be partially satisfied by the surrender of certain assets as well as payments by company principals Luis O. Carrera and Roberto Llaury of $59,207 and $50,562 respectively.
The order was entered on July 11, 2016, by the U.S. District Court for the Central District of California.
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