The Federal Trade Commission (FTC) and the New York Attorney General’s Office ended an illegal debt collection scheme, which was operated by Robert Heidenreich also known as “Bobby Rich.”
On Thursday, the FTC and AG Letitia James announced that Heidenreich agreed to settle the charges filed against him and his companies.
Fraudulent debt collection operator agreed to a $1.7 million monetary judgment
Under the settlement agreement, Heidenreich agreed to a monetary judgment of $1.7 million, which was partially suspected because of his inability to pay. He also agreed to the order permanently banning him from the debt collection business and prohibiting him from misleading consumers about financial products.
In October 2018, the FTC and AG Letitia James sued Heidenreich and his six companies including Campbell Capital LLC; Kahl, Heidenreich, and Nemmer LLC; Urban, Heidenreich, Melendez, and Associates, LLC; J & V Receivables LLC; Rich Financial LLC; and BCH & Associates Ltd.
The Commission and the Attorney General alleged that defendants’ employees demanded from consumers more money than the amount they owed. Such practice is called “overbiffing” in the debt collection industry.