FTC: $1M settlement in debt collection scheme

WASHINGTON (AP) — A debt collection operation that involved text messages and collectors allegedly posing as attorneys has led to a $1 million settlement with the federal government.

The Federal Trade Commission said Wednesday that a debt collector in Glendale, Calif., agreed to pay the civil penalty in order to settle FTC charges. The commission alleged that Archie Donovan and two companies he controls — National Attorney Collection Services, Inc. and National Attorney Services LLC — used text messages and phone calls, and failed to disclose that they were debt collectors, which is against the law.