NEW YORK — The Federal Trade Commission said Thursday that several debt collectors have been banned from the business for abusive practices, including berating consumers, telling their neighbors about their debts and even threatening to dig up the bodies of relatives if they did not repay funeral bills.
The FTC said David M. Hynes II and Lorena Quiroz-Hynes agreed to the permanent ban as part of a settlement that also includes a series of businesses connected to Hynes. The FTC agreed to accept a payment of $700,000 on what was a $33.8 million assessment, saying the accused cannot pay the full amount.
The collection operation was based in Van Nuys, Calif., but the FTC says they worked with small businesses around the country.
There was no listed phone number for Hynes and Quiroz-Hynes in Van Nuys, and a message left with a lawyer who has represented them was not immediately returned.