by Paul MankinOwner Resource Group Purchases Debt Collection Agency
Owner Resource Group is a private investment firm located in Austin, Texas. In 2016 the company acquired GC Services, one of the country’s oldest and largest providers of call centers and debt collection services. The collection agency collects for a wide range of businesses and government entities, including utility companies, credit cards, retailers, and mortgage companies. It has been in business since 1957 and has more than 20 locations and 8,000 employees.
Since GC Services’ purchase by Owner Resource Group, it has had a handful of lawsuits filed against it for violating the Fair Debt Collection Practices Act (FDCPA), a federal law enacted by Congress in 1977 to help protect consumers from unfair, deceptive, and abusive collection practices. Consumers have also filed several complaints with the Better Business Bureau (BBB) and Consumer Financial Protection Bureau (CFPB).
Complaints Against Owner Resource Group’s GC Services
Since Owner Resource Group’s purchase of GC Services, the collection agency has had over a dozen complaints filed against it with the BBB and CFPB. These complaints allege that the debt collector violated the FDCPA:
- Continued to contact a consumer after being asked in writing to stop
- Failed to provide consumers with debt validation information
- Reported false information to the credit reporting agencies
- Contacted third parties about a consumers debt
- Continued contacting consumers after being told repeatedly they had the wrong person
- Contacted consumers at work when they knew the employer did not allow that type of call
- Attempted to collect fees not authorized by the original contract
Many of the complaints also allege that the debt collector refused to honor payment arrangement agreements and failed to report accounts as disputed on consumers’ credit reports.
Law Suits Against Owner Resource Group’s GC Services
In October of 2016, both GC Services and Owner Resource Group were sued by an Indiana resident for falsely informing her in a collection letter that a dispute of the debt must be in writing, when an oral dispute is valid under the FDCPA. In June of 2017, the court found that the law “plainly does not impose a writing requirement” when disputing a debt. The lawsuit was certified as a class action suit by the court in July of 2017 and has not yet been concluded.
In 2017 a complaint was filed by the Federal Trade Commission (FTC) in federal court in the Southern District of Texas. The FTC alleged that GC Services left voicemail message that disclosed information about consumers’ student loan debts to third parties and called consumers multiple times after being told they had the wrong person or the wrong number. The collection agency settled the lawsuit, agreeing to pay $700,000 in civil penalties.
Another lawsuit against GC Services was filed in Michigan in 2018, alleging that the debt collection agency violated the FDCPA in its attempts to collect on debts owed to the Michigan Treasury Department for back taxes. The letters contained the state of Michigan seal, a state of Michigan email address, and included a physical address is in Lansing, although the company is located in Texas. Under the FDCPA, a debt collector cannot falsely imply that is it affiliated with any government agency, which the letters clearly did. The complaint also alleges that the debt collection agency’s letters demanded payment within 10 days and threatened to levy consumers’ property and/or garnish their wages if payment was not received. The lawsuit has not yet been settled.
In December of 2018, a proposed class action lawsuit was filed in Texas alleging that GC Services’ failed to disclose in a collection notice that the consumer’s American Express debt was incurring interest and fees. The complaint says that this is an unfair, deceptive, misleading, and unconscionable way to collect on a debt and caused the Plaintiff to be unable to prioritize paying her debts properly, causing her damage. The suit is still ongoing and no settlement agreement has been filed or decision issued.
If Owner Resource Group or GC Services is using any unfair, deceptive, or abusive practices in order to collect a debt from you, it is time to hold them accountable for their actions. Please contact our office for a free, no obligation case review at 1-800-219-3577.
by Paul MankinPNC Bank Accused of Assisting in $85 Million Fraud Scheme
A federal lawsuit filed in June of 2019 in Florida’s Southern District court alleges that Jeremy Lee Marcus used PNC Bank accounts to run a fraudulent debt relief scheme that bilked consumers out of $85 million. Marcus used over a dozen business names, including 321 Loans, Helping America Group, Instahelp America Inc. and Financial Freedom National Inc., 142 internet domain names and 440 direct-dial phone numbers to convince consumers to participate in the phony debt relief program. The lawsuit was filed by Miami attorney, Jonathan Perlman, who was appointed receiver in a previous suit filed by the Federal Trade Commission (FTC) in May of 2017. As receiver, it was Perlman’s job to manage and investigate Marcus’ affairs and attempt to recover funds for consumers who were defrauded.
Marcus’ debt relief companies falsely told consumers that their unsecured debts would be settled or payment terms modified to reduce balances, interest rates or fees. Some were sent what appeared to be loan documents for low interest rate loans that were supposed to be used to consolidate and pay off their debts. Consumers’ bank accounts were debited monthly to pay off remaining debt, however, no loans were ever made and monthly payments were not applied to the consumers’ debt. Consumers eventually were told by their creditors that no payments were being made, and many were sued by their creditors, left in financial distress and forced into bankruptcy.
According to the lawsuit, “more than $32.8 million passed through PNC Bank accounts over the life of the banking relationship between the bank, Marcus, and the various companies he created.” Shortly after Marcus began his debt relief scheme in 2014, PNC Bank became suspicious of his companies activities and shut down his accounts. Despite this, PNC Bank resumed its banking relationship with Marcus just nine months later. The lawsuit alleges that PNC Bank assisted Marcus in funneling millions of dollars through his various PNC accounts and hundreds of thousands of dollars to offshore accounts held by Marcus’ different business entities. Marcus has repeatedly refused to comment on his relationship with PNC Bank and bank officials have stated that the bank does not comment on legal matters. The SunSentinel reports that a spokeswomen for the U.S. Attorney’s Office in the Southern District of Florida said by email that the Department of Justice “does not confirm or deny the existence of an investigation” into PNC Bank.
If you believe that you were a victim of a fraudulent debt relief agency, please contact our office for a free, no obligation consultation at 1-800-219-3577.