A Philadelphia debt collection agency has agreed to pay a $2.25 million fine to settle an investigation by the Federal Trade Commission into multiple alleged violations of the Fair Debt Collection Practices Act (FDCPA) and other unfair business practices.
In its November 21 announcement of the settlement, the FTC stated that the fine is the largest civil penalty it has ever received in a debt collection case.

Academy Collection Service, Inc., and owner Keith Dickstein agreed to the fine in partial settlement of charges that the company and its collectors misled, threatened, and harassed consumers; disclosed their debts to third parties; and deposited postdated checks early, in violation of federal law. Dickstein was cited for not stopping the violations.
The FTC said in a statement that more than 1,000 complaints had been filed against the company with the Commission, various state attorneys general, the Nevada and Pennsylvania Better Business Bureaus, and the company itself. In the course of its investigation, the FTC found that the company frequently ignored consumer complaints.

Two other company executives, Edward L. Hurt III and Albert S. Bastian, were also named in the complaint, but did not participate in the settlement. According to the FTC, Bastian and Hurt led the company’s Las Vegas collection operation. The agency’s case against the two is ongoing.

In addition to the fine, Academy Collection Service agreed to reform many of its business practices and stop certain practices, such as misrepresenting debts to consumers, improperly communicating with third parties about a debt; using false, deceptive, or misleading representations in debt collection efforts; communicating with a consumer at any unusual time or place, including the workplace; or harassing, oppressing, or abusing any person in connection with debt collection.