Capital Acquisitions and Management Corporation
Encyclopedia
Capital Acquisitions and Management Corporation (CAMCO) was a United States debt collection agency
and subsidiary of Risk Management Financial Services, Inc., that was fined and closed down for repeated violations of the Fair Debt Collection Practices Act
(FDCPA). Its closure marked the first time a Federal Trade Commission
investigation shut down a collection company. http://www.rmg.com.au/newsdisplay.asp?MenuID=4&NewsID=35
CAMCO was a debt buyer
focused on long overdue accounts
- sometimes over a decade old, i.e. well beyond the statute of limitations - that it purchased for less than a penny on the dollar. Its employees would contact debtors by phone to collect funds. Consumers complained that collectors were calling late at night and/or using threatening language. Consumers also complained that they often had never heard of the supposed debt. After receiving numerous complaints from consumer
s regarding these abusive debt collection practices, the Federal Trade Commission (FTC) began an investigation of CAMCO in 2003. On 24 March 2004, the FTC filed a formal complaint alleging multiple violations of the FDCPA. On the same day, a consent decree
was entered, in which CAMCO agreed to pay a $300,000 civil penalty and to refrain from further violations of the law.
Nothwithstanding the agreement, complaints of violations from consumers continued. Accordingly, on 3 December 2004, the FTC obtained an injunction
against CAMCO and its owners and froze their assets. CAMCO headquarters were shut down by local police officers and representatives from the Federal Trade Commission and the company ceased functioning.
The company was put into receivership
and was forced to sell the consumer debts it had bought for collection. On January 19, 2005, the debts were sold at a public auction
in New York to another debt buyer.
On 30 November 2006, CAMCO and the Federal Trade Commission entered into a stipulated settlement Order
whereby CAMCO, its owners and its affiliated companies agreed to pay an additional $1 million penalty and to a permanent ban from engaging in any debt collection activity.
Collection agency
A collection agency is a business that pursues payments of debts owed by individuals or businesses. Most collection agencies operate as agents of creditors and collect debts for a fee or percentage of the total amount owed....
and subsidiary of Risk Management Financial Services, Inc., that was fined and closed down for repeated violations of the Fair Debt Collection Practices Act
Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act , et seq., is a United States statute added in 1978 as Title VIII of the Consumer Credit Protection Act...
(FDCPA). Its closure marked the first time a Federal Trade Commission
Federal Trade Commission
The Federal Trade Commission is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act...
investigation shut down a collection company. http://www.rmg.com.au/newsdisplay.asp?MenuID=4&NewsID=35
CAMCO was a debt buyer
Debt buyer
A debt buyer is a company, sometimes a collection agency or a private debt collection law firm, that purchases delinquent or charged-off debts from a creditor for a fraction of the face value of the debt...
focused on long overdue accounts
Accounts receivable
Accounts receivable also known as Debtors, is money owed to a business by its clients and shown on its Balance Sheet as an asset...
- sometimes over a decade old, i.e. well beyond the statute of limitations - that it purchased for less than a penny on the dollar. Its employees would contact debtors by phone to collect funds. Consumers complained that collectors were calling late at night and/or using threatening language. Consumers also complained that they often had never heard of the supposed debt. After receiving numerous complaints from consumer
Consumer
Consumer is a broad label for any individuals or households that use goods generated within the economy. The concept of a consumer occurs in different contexts, so that the usage and significance of the term may vary.-Economics and marketing:...
s regarding these abusive debt collection practices, the Federal Trade Commission (FTC) began an investigation of CAMCO in 2003. On 24 March 2004, the FTC filed a formal complaint alleging multiple violations of the FDCPA. On the same day, a consent decree
Consent decree
A consent decree is a final, binding judicial decree or judgment memorializing a voluntary agreement between parties to a suit in return for withdrawal of a criminal charge or an end to a civil litigation...
was entered, in which CAMCO agreed to pay a $300,000 civil penalty and to refrain from further violations of the law.
Nothwithstanding the agreement, complaints of violations from consumers continued. Accordingly, on 3 December 2004, the FTC obtained an injunction
Injunction
An injunction is an equitable remedy in the form of a court order that requires a party to do or refrain from doing certain acts. A party that fails to comply with an injunction faces criminal or civil penalties and may have to pay damages or accept sanctions...
against CAMCO and its owners and froze their assets. CAMCO headquarters were shut down by local police officers and representatives from the Federal Trade Commission and the company ceased functioning.
The company was put into receivership
Receivership
In law, receivership is the situation in which an institution or enterprise is being held by a receiver, a person "placed in the custodial responsibility for the property of others, including tangible and intangible assets and rights." The receivership remedy is an equitable remedy that emerged in...
and was forced to sell the consumer debts it had bought for collection. On January 19, 2005, the debts were sold at a public auction
Public auction
A public auction is an auction held on behalf of a government in which the property to be auctioned is either property owned by the government, or property which is sold under the authority of a court of law or a government agency with similar authority....
in New York to another debt buyer.
On 30 November 2006, CAMCO and the Federal Trade Commission entered into a stipulated settlement Order
Court order
A court order is an official proclamation by a judge that defines the legal relationships between the parties to a hearing, a trial, an appeal or other court proceedings. Such ruling requires or authorizes the carrying out of certain steps by one or more parties to a case...
whereby CAMCO, its owners and its affiliated companies agreed to pay an additional $1 million penalty and to a permanent ban from engaging in any debt collection activity.