A credit counseling outfit has the honor of being the first company to be sued by the Federal Trade Commission for alleged do-not-call violations.
The firm, National Consumer Council (NCC), was also charged with defrauding consumers and could end up paying millions of dollars in damages. A federal judge appointed a temporary receiver for the firm on May 3 and hit it with a temporary restraining order.
NCC, which operates a complex web of companies, left prerecorded messages on home answering machines claiming it was a nonprofit organization that helps consumers reduce their debt loads and stops creditors from hounding them, according to the FTC.
Some of the individuals called by the firm had registered on the FTC’s national do-not-call list. Others had already told NCC they didn’t want any further calls, the FTC alleged.