Business & Professional, Inc.

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I" THE LATTER OF BUSINESS & PROFESSlONAL, INC., ET AL.

SENT Order, ETC., IX REGARD TO Tile ALLEGED VIOLATION OF Tile FEDERAL TRADE CO:JfMISSlON ACT Docket C-524. Compla.lnt, July 16, 1965-Decision, July, 1963 Consent order requiring Roselle, N. J., collectors.of debts on a commission basis in which connection they used a variety of forms to obtain information regarding delinquent debtors, to cease using on post cards such misleading terms as "REGIO TAL REGISTRY BOARD" signed" Director printing at the end of demand letters the titles "Legal Department" Claims Department", and "Credit lanager, and mailng to delinquents printed forms resembling legal summons beaded "Final Notice Prior to Suit" CO:\IPLA.INT Pursuant to the provisions of the Federal Trade Commission Act and by virtue of the aut.hority vested in it by said Act, the Federal Trade COJ11nission, having reason to believe that Business & Pro ressional, Inc., a corporation, and Thomas Campagna, Sal1ianne Campagna, and Richard K. I-Iealc, inc1ividua11y and as offcers or said corporation, hereinafter referred to as respondents, have violated the provisions of said Act, and it appearing to the Commission t.hat a proceeding by it in respect t.hereof would be in the public inrsrest hereby issues its complaint stating its charges in tllat respect as follows:

P ARAGRArn 1. Respondent Business & Professional, Inc.. 13 a corporation organized, exist ing and doing busine,ss under alld by virtue of the la,\\s of the State of New Jersey \\ith its prindpal offce and place of business located at 613 St. Georges A 'Cenne iE the City of Roselle, State of Kcw Jersey. Respondents Thomas Campagna, S Lllianne Campagna and Richard N. Heale are offcers of the corporate respondent. They formulate, direct and control the acts and practices of the corporate respondent, including the acts ancl practices hereinafter set forth. Their address is the same as that or the corporate respondent. PAR. 2. Respondents arc now, and for some time last past have been, engaged in the collection of debts alleged to be due and owing by others, upon a commission basis, contingent upon collecti01l. PAR. 3. In the C011rse ancl conduct or their bllsiness, resrondents now cause, and ror some time last past have caused, printed forms to be mailed from their place of business iu the State of New J eroe:, BUSINESS & PROFESSIONAL, INC. , ET AL. 235 234 Complaint to alleged debtors located in various other states of the United , a,nd are now, receiving accounts for collectionStates, and have been from persons, firms and corporations and have been collecting accounts due by persons, firms and corporations located outside the State of New Jer ey aud received by means of the United States mail, letters, checks and documeuts to and from states other than the State of ew Jersey, and maintain, and at all times mentioned in saidherein have maintained, a substant.ial course of trade collection work in commerce, as "commerce:' is defined in the Federal Trade Commission Act.

PAR. 4. In the conTRe and conduct of their business, respondents frequently desire to obtain information as to the current addresses places of employment and other pertinent information as to persons whose alleged delinquent accounts the respondents are seeking to collect. For this purpose they use, and have used, certain printed forms and post cards. Typical, but not al1 inclusive, of said forms is the following, which is printed on a post card: GIONAL REGISTRY BOARD L'pon careful investigation of your records we find them incomplete.

It is urgent thrJt: :ran call- HU 6-3562 File # Mr. Russell Not a government agency. Director PAR. 5. Through the use of the desiguation "Regional Registry Board" and by the wording on said post card, particularly the words at the end "),11'. Ruesch, Director," respondents represent directly or by implication, to those to whom the post card is mailed that the respondents atc communicating with the addressee in some offcia.1 capacity, governmental or otherwise, and that the information is required for offcial purposes. In truth and in fact, respondents are not acting in any offcial capacity, governmental or otherwise, but desire the addressee to eontaet them solely for the purpose of locating the person to whom it is addressed and obtaining his present address, place of employment and other pertinent information.

Therefore, the aforesa.id representations were, and are, false, misleading aud deceptive.

PAR. 6. In the course and conduct of their business as a collection agency, respondents cause to be sent to the persons from whom they seek to collect alleged delinquent accounts, demand letters , . ___ .. 236 FEDERAL TRADE COIvIl\ISSION DECISIOXS Complaint 63 F.

at the end of which are printed certain titles. Typical but not all inclusi, , of sllch designations are the following: Legal Department Claims Department Credit Manager In truth and in fact, respondents have no Legal Department Claims Department or Credit ::Ianager, but, on the contrary, re spondents ' sale business is the collection of alleged delinquent accounts.

Therefore, the aforesa.id representations were, and are, false misleading and deceptive.

PAR. 7. In the course and conduct of their business, respondents have mailed to a1Jeged delinquent debtors certain printed,cl forms. Typical but not all inclusive of said forms is the following: FINAL XOTICE PRIOR TO SUIT To the above named debtor:

First: You wil please take notice that the undersigned claims that you are indebted to - - - -in the sum of ---_ - for goods sold and delivered, together with interest. Second: This is your Dual notice, and that unless you appear at the oilce of the Business & Professional, Inc. , located at 613 St. Georges Ave. , Roselle, N. on or before the ___n__ --_u day of _uu_--- - 19u, before 6:00 p. rn of that day, for payment or adjustment of this claim, suit wil forthwith be brought for the total amount, with interest, costs and attorney s fees. Dated at Roselle, St.ate of New Jersey, this _ __n_ _--- day of _ 19u BUSINESS & PROFESSION.\AL , 1.\ C.

Collecting Agents for per______---------- AFFIDA VIT STATE OF EW ,JERSEY County of Union:

On this - - - - - u day of - - _u - - - - , 19- - , before me pcrsonally appeared A. Armand who being duly sworn, deposes and says: That he is the manager of the Business & Professional, Inc. collecting agents for--___ -_u , and there is now due from the debtor the snm of - - , which includes interest. Further affant salt.h naught.

Subscribed and sworn to before me - a notary public in and for the County of Union, State of ::ew Jersey, This is not a court order or process.

(The words in the last line are printed in type which is much smaller than the other type used on said form.

BUSI\LESS & PROFESSION TAL , INC. , ET AL. 237 234 Decision and Ord€r PAR. 8. By the use of said form set forth in the last preceding paragraph respondents lead alleged delinquent debtors into the belief that such form is a legal summons, notice, writ or other legal.l process or document and that said form imposes upon the recipient thereof a legal obligation to respond, and t.hat failure to so respond will or may result, in the entry of a default judgment, or other leg,l1 consequences.

In truth and in fact, snjd form is not a legal.l document or process but, on the contrary, it i:3 a. de-mand for payment before suit is brought.

Therefore, said form is false misleading and deceptive. PAR. 9. The use, as hereinbefore set forth, of said representations and said forms has had, and now has, the tendency a,ncl capacity to deceive a.nd mislead persons into the erroneous and mistaken behef that said representations and lmplicat.ions are true, and induce the recipients t.hcreof to supply information which they otherwise would not have supplied and the pilymcnt of accounts to respondents, by reason of said erroneous and mistaken belief. PAR. 10. The aforesaid acts and pnlctices of respondents as herein alleged, were a.nd are, all to the prejudice and injury of the public and constituted, :ll1cl now constit.ute, unfair and deceptiyc acts and practices in commerce, in violation of Section 5 of the Federal Trade Commission Act.

DECISlOX A:'D ORDER The Federal Trade Commission having initiated an investigation of certain acts a.nd practices of the respondents named in the caption hereof, and the respondents having been furnished the.le,after with a copy of a draft of complaint which the Bureau of Dcceptiyc Practices proposed to present to the Commission for its eonsiderrttion and which, if issued by tho Commission, \\ould cha.lge respondents "With violation of the Federal Trade Commission Act; and The respondents and counsel for the Commission having thereafter executed an agreement containing a. consent order an admission by the respondents of ajj the jurisdictionat facts set forth in the aforesaid draft of complaint, a statement that the signing of sa,icl agl'ef'ment. is for settlement purposes only and does not constitute an a.admission by the respondents that. the la,\" has been violated as fll1egcd in sllch complaint, and "Wa,ivers and provisions as required by t.he Commission s .rules; and The Commission, having reason to believe that the respondents have violated the FedoraJ Trade Commission Act, and having determined that complaint should issue stating it.s charges in that , 238 FEDERAL TRADE COMMISSIO DECISIQ)IS Decision and; Order 63 respect, hereby issues its complaint, accepts said agreement, makes the foJ1owing jurisdictioual findings and enters the foJ1owing order: 1. Respondent Business & Professional, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New Jersey, with its offce and principal place of business located at 613 St. Georges Avenue, in the city of Roselle, State of :Yew Jersey.

Respondents Thomas Campagna, SalEmme Campagna and Richard N. I-Ieale, are offcers of said corporation and their address is the same as that or said corporation.

2. 'The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and or the respondents, and the proceeding is in the public interest.

ORDER It is ordered That the respondent, Business & Professional, Inc. a corporation, and its offcers, and respondents Thomas Campagna Sallanue Campagna and Richard N. Heale, individually and as offcers or said corporation, and respondents' representatives, agents and employees, directly or through nny corporate or other device in connection ,with the collection of, or the attempt to conect, alleged delinquent accounts in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from: 1. Using, or placing in the hands of others for llse any forms, letters or any other materia.1s, printed or ,YI'itten, which do not clearly and conspicuously reveal tJ1ereon that the purpose thereof is to obtain information regarding alleged delinquent debtors.

2. Using post cards, forms, letters or other material ,vhieh represent, directly or by implication, that respondents' business js other' than that of collecting alleged delinquent debts for themselves or others.

3. Using as a designation to any form, letter or other material the \\orcls "Legal Department" Claims Departmenf' or " Credit :Manager ' or any similar designation of any department, bntnch or division unless the respondents have such department, branch or division actually in operation as a part of their organization or otherwise representing that respond ents' business is other than that of an agency for the collection of debts from alleged delinquent debtors. 4. Using, or placing in the hands of others for use, respondents' present form designated " Final otiee Prior to Suit" or any other form or material which simulates legal process. LEEDS WATCH CASE CORP. ET AL. 239 234 Complaint It i8 further ordered That the respondents herein shall, within sixty (60) days after service upon them of this order, file with the Commission a report in writing settiug forth in detail the manner and form in which they have eomplied with this order.