Plano, Texas – In a major victory for consumers, the U.S. District Court for the Eastern District of Texas has entered a permanent injunction and civil penalty judgment against David J. Devany, former vice president of Commercial Recovery Systems Inc. (CRS), of Plano, Texas, to prevent future deceptive and abusive debt collection practices.
According to the court order, Devany and CRS engaged in numerous instances of false and misleading statements to consumers, including claiming to be attorneys or judicial employees, and threatening to garnish wages, taxes, and 401(K) plans if consumers did not pay.
The court found that, in reality, CRS had neither the intent nor the authority to file lawsuits against consumers or attempt to have their wages garnished.
Devany, who served as vice president of CRS from 2011 to 2014, agreed to a stipulated order that permanently bans him from engaging in debt collection and related activities.
The stipulated order assesses a partially suspended judgment in the amount of $496,000, which approximates Devany’s earnings from 2011 to 2014, during which numerous violations took place.
The immediate civil penalty payment is $10,000, based on Devany’s current ability to pay.
“Deceptive debt collection practices are an all too common problem,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We at the Justice Department will continue to work with the Federal Trade Commission and others to ensure that these practices stop and that those who engage in them are held accountable.”
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Key Facts
- State: Texas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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