(Legal Newsline) — The Federal Trade Commission (FTC) has announced that Jared
Irby, Richard Hughes, Coastal Acquisitions LLC, and PSC Administrative LLC have
been banned from the debt collection business after allegations of falsely
promising to resolve consumers’ payday loans through their hardship program.
defendants would allegedly dupe consumers into their programs, have them stop
making payments to their lenders but fail to provide the promised debt relief.
According to the FTC, this would put the consumers in even more financial
trouble – they would pay hundreds of dollars for what amounted to no reduction
or settlement of their loans.
stipulated final orders were announced, banning the defendants from all debt
relief-related activities. They are also barred from making misrepresentations
about their product and services.
imposes financial penalties of more than $23.7 million. The judgments will be
partially suspended once Irby and the corporate defendants pay $149,537 and
Hughes pays $8,037.26.
voted 3-0 to file the stipulated final orders against Irby, Coastal Acquisitions
and PSC Administrative, and against Hughes. The orders were filed Sept. 7 in U.S.
District Court for the Southern District of Alabama.