skip to Main Content

American Municipal Services Settles For $350,000 in Misconduct Case

American Municipal ServicesFTC Settlement

On March 24th, American Municipal Services Corporation and its owners settled charges with the FTC for allegedly using abusive debt collection practices, in violation of the FTC Act and the Fair Debt Collection Practices Act (FDCPA).

American Municipal Services collects court fines, parking tickets, and debts for utility bills and other services on behalf of more than 500 municipalities. The Company allegedly sent letters misrepresenting their status as official government notifications and threatened consumers with false claims if they did not pay their debts – including being subject to arrest, having their driver’s license revoked, and that their debts would be reported to consumer reporting agencies. Under the Proposed Stipulated Order, the Defendants are: · Prohibited from making misrepresentations to collect debts; ·Prohibited from making unsubstantiated claims and violating the FTC Act and the FDCPA; and · Required to pay a $350,000 judgment.

Back To Top