Business ProfileforInternational Credit Recovery Inc.

As a result of action by the Federal Trade Commission and the Commonwealth of Pennsylvania, debt collection company International Credit Recovery, Inc. (ICR), officer Richard Diorio, Jr., and manager Cynthia Powell, have agreed to a permanent ban from the debt collection industry after being charged with engaging in bogus debt collection efforts against businesses and non-profits. 

The FTC and Pennsylvania alleged that ICR was a key part of a telemarketing scheme run by American Future Systems, Inc., (AFS), which also does business as Progressive Business Publications and the Center for Education and Employment Law. ICR allegedly collected on debts AFS claimed organizations such as businesses, schools, fire and police departments, and non-profits owed for book and newsletter subscriptions they did not order.

The FTC and Pennsylvania charged that, in connection with its debt collection activities, ICR contacted consumers that it knew or had reason to know did not agree to order paid subscriptions. They also charged that ICR used false or unsubstantiated representations to try to get consumers to pay, and that ICR illegally threatened consumers if they did not pay.

The court order, which was agreed to by the defendants to settle the case, permanently bans them from the debt collection industry, as well as requires them to cooperate since the case will continue against the other defendants AFS, Progressive Business Publications of New Jersey, Inc. and Edward Satell.

BBB finds a pattern and high volume of complaints regarding collection activities for consumers on client accounts for Progressive Business Publications of Malvern, PA. Consumers have advised BBB that they have not ordered any publications from Progressive Business Publications and therefore they do not owe any debt to International Credit Recovery.  The company response to many of these BBB complaints with a response stating: "However, after careful review of this customer’s complaint we now have dead-filed the account stopping all collection activity as a courtesy to this company and Progressive Business Publications was notified. There will not be a balance due on this invoice, we will not run her credit card. This matter is considered closed." 

The business responded to this pattern of complaints with the following statement:

In response to that, a majority of complaints appear to be billing/collection issues approximately 400. The customers are upset they are being billed for product they feel they didn’t order. They are now upset they are being contacted by a collection agency. They express to us they thought it was only a trial or free issue. However, they are told it will be a year subscription if not cancelled after their 30-day trial period. They are also sent a confirmation email with those terms. We found that a majority of the complaints misunderstood those terms and have not fully read the email sent to them or disregard it altogether. In our attempts to correct this we do explain step by step their original agreement and if a customer is still dissatisfied we will clear them from collection. 

The percentage of customers with this problem is minimal compared to the customers we are contacting.

An average of 28,500 customers is turned over to us annually, so in 3 years that is 85,500 customers.

Of those an average of 500 in 3 years has complained regarding Progressive Business Publications’ business practices. That is 1% of the customers we contact the other 99% (85,000) we either are able to resolve ourselves or they pay their debt and do not send in a complaint.

We have been given authority by our client Progressive Business Publications to dead-file accounts with similar problems. They also contact us with customers to pull from collections as well to resolve any issues they may have. Our relationship with our client is strictly third party, however we have done business with them for 25+ years and have established a relationship of trust to be able to dead-file accounts we feel have reason to not continue their subscription.