Associated Community Services Files for Chapter 11
Associated Community Services, one of the largest charity telemarketers in the U.S., has filed for chapter 11 protection, the Detroit Free Press reported today. The company, which keeps as much as 90 percent of the money it raises for its not-for-profit clients, has come under fire in various states for some of its phone tactics. In March, for example, the company agreed to a $45,000 settlement with the Michigan Attorney General’s office for misleading senior citizens in their phone pitches. ACS names 39 creditors in the court documents it submitted last month, including AT&T, the cities of Dearborn and Southfield, Ricoh, PNC Bank, Oakland County, a Missouri law firm and a Syracuse, N.Y. headphones company. It owes the IRS more than $15.5 million and the state of Michigan more than $1.1 million, according to court documents.