SHERMAN, Texas (Legal Newsline) — The Department of Justice
has announced that the Sherman Division of the Eastern District of Texas has entered a stipulated order for permanent injunction and civil penalty judgment
against David J. Devany. Devany is a former vice president of Commercial
Recovery System Inc. (CRS).
The stipulated order is meant to prevent future
deceptive and abusive debt collection practices.
“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 Department of Justice 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.”
CRS, a third party debt collector, collects auto loan and
credit card debts for creditors. According to the department, CRS collectors alleged to be attorneys or judicial employees when contacting consumers. Additionally, they
would allegedly tell consumers lawsuits had been filed against them.
Devany is banned from the debt collect business. He also
received a $496,000 penalty, most of which will be suspended due to his
inability to pay.