Collection Agency Scams Defunct Magazine Company’s Customers
March 31st, 2008 amy
Just when you think you’ve heard it all as far as collection agency scams go, the folks at Consumer Affairs always break something new. This time it’s collection agencies trying to collect for debts (some not even owed) for a magazine peddling company the FTC put out of business five years ago for fraudulent business practices.
In 2003, the FTC essentially closed the door on Consolidated Media Services (CMS) and the network of companies under the Cross Media Marketing name after they settled for $350,000 and agreed to end the myriad of alleged deceptive sales tactics they were accused of. Although CMS appears to have dissolved, consumers write that a collection agency — Luebke Baker and Associates of Peoria, Ill. — has been trying to collect on CMS debts, some as old as 11 years. Some consumers say they paid the balance of these debts years ago while others say they have never heard of the companies that generate these charges.
Some of Luebke Baker’s clients are reportedly third-party buyers of debt who purchased the names and accounts of the consumers from defunct companies such as CMS and other sources. That explains why a company now out of business is still trying to gather funds and why consumers say Luebke Baker representatives won’t give out company phone numbers or addresses.
