The investigation continues as to why the Federal Trade Commission closed Capital Acquisitions and Management Corporation. 23 News spoke with a former employee who says the company’s deceptive collection practices are true.
When the FTC came in and shut down CAMCO, former worker Tina Klein was not surprised. For a few weeks she had a taste of what it was like to be a debt collector.
Tina says, “You wouldn't survive unless you did it their way. That's why people dropped like flies."
In March, the FTC fined CAMCO $300,000 for violating the Fair Debt Collection Practices Act. Since that happened in March, the FTC told 23 News that they have received 2,000 complaints from consumers. Among the complaints is that CAMCO would threaten consumers to take legal action that in reality could not be taken. Another complaint states that debt collection managers would misrepresent themselves as attorneys. These are all accusation Tina says she saw first hand.
Tina recalls, "One of the seasonal people got on the phone and said he was an attorney and said he wanted to work it out before they would have to go to court."
Other allegations stem from creditors abusive and obscene language.
Tina tells 23 News, "The debtor must have said I'm a customer and you should not talk or scream like that to me. The employee then said, “I will scream and you every day until you pay. When you pay then you will be a customer."
As a paralegal by trade, Tina says she left knowing numerous laws were being broken. She says she couldn't work for a company who would stop at nothing to seal the deal.
Lepetomane 12 is the receiver who has been hired by the FTC to investigate CAMCO. Anyone with any questions or further allegations can call 1-312-832-5790.
The FTC plans to issue a statement about the investigation Wednesday morning.