CFPB Sues Firm for Debt Collection Practices

By Staff Writer January 14, 2022

The Consumer Financial Protection Bureau sued United Debt Holding, JTM Capital Management, United Holding Group, and their owners, Craig Manseth, Jacob Adamo and Darren Turco, for illegal debt-collection practices. The Bureau alleges that the defendants placed consumer debt with, or sold consumer debt to, collection companies that used unlawful and deceptive collection tactics. The defendants knew, or should have known, the collection companies made false threats and false statements to consumers. And although some of the defendants have been the subject of prior enforcement action, they continued their unlawful practices.

“This debt collection ring and its operators created the conditions for rampant abuse,” said CFPB Director Rohit Chopra. “Companies cannot profit and evade liability simply by creating a maze of shape-shifting entities and enabling third parties to take advantage of consumers.”

United Holding Group, headquartered in Williamsville, N.Y., was founded by Manseth, Adamo, and Turco in May 2017. Before co-founding UHG, Manseth owned United Debt Holding, Turco worked at UDH as a manager, and Adamo owned JTM. All three companies are debt collectors that buy debt portfolios from creditors, or other debt sellers, and then place the portfolios with or sell them to other collection companies. From September 2017 through April of 2020, the defendants collectively placed debts with a face value of more than $8 billion. The three individuals formed UHG, and UHG then managed ongoing business for UDH and JTM. The CFPBureau alleges all three companies allowed third-party collection companies to deceive consumers and placed or sold debt portfolios to collection companies engaged in unlawful behavior.

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Last modified on Friday, 21 January 2022 15:43