In a business litigation lawsuit, Asset Acceptance LLC has agreed to a $2.5 million civil penalty and to make changes in their organization that will protect consumers. Michigan-based Asset Acceptance is one of the largest purchasers of old debts in the United States and was accused of improper activity when attempting to collect on those debts. The government alleges that the company collected on "zombie" debts without letting customers know that they were not actually enforceable by law. The business practices settlement requires that Asset adopt new business practices to include proper protection for customers in addition to investigating customer debt disputes.

When the customer agreed to pay or even made a promise to pay the debts, they may have unwittingly reset the clock on the statute of limitations on their debt. The government also alleges that Asset did not investigate people's claims that they didn't owe the debt or were the victim of identity theft as well as consumer claims that the debt had already been paid. Asset is also accused of reporting negative information to credit bureaus about consumers even with the knowledge that a debtor had not received a notice of fact. Consumers sometimes only learned that Asset had reported them when they applied for a loan.

The settlement ended with Asset Acceptance resolving the FTC investigation against them without admitting to any type of wrongdoing. The CEO of Asset is pleased that the settlement is over and believes that the agreement will give Asset a transparency in their practices that was missing before. He continued by saying that many of the requirements in the settlement have already been implemented and welcomes the opportunity to work with the FTC so that their new practices will become the new standards in the debt collection process.

The outcome of this case allowed Asset to continue the practice of debt collection and make changes to benefit consumers all without admitting any wrongdoing on their part. When businesses are accused of unlawful practices, speaking to an experienced attorney may be beneficial.

Source: The Detroit News, "Warren company settles federal suit over 'zombie' debts," David Shepardson, Jan. 31, 2012