FTC-PR-241104-2 (11-04-24) (FTC-PR-2411)
FTC Takes Action Against Phantom Debt Collector That Collected Millions In Bogus Debt From Consumers – Federal court temporarily halts operations while lawsuit proceeds
Excerpt: The Federal Trade Commission is taking action against a Georgia-based debt collector that tricked consumers into paying more than $7.6 million in bogus debt by threatening them with jail time, harassing their family members, and other unlawful actions.
In response to a federal court complaint (PDF) filed against Global Circulation, Inc. (GCI) and its owner, Kenneth Redon, III, the court agreed to temporarily halt (PDF) the company’s operation and ordered it to turn its assets over to a court-appointed receiver.
“Debt collectors should know that harassing families and making empty threats of jail time is illegal,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “This action should send a clear message that illegal collection practices will come with heavy consequences.”
In its complaint, the FTC alleges that GCI and Redon contacted consumers under a number of fictitious company names, including Total Mediation Solutions, Total Consumer Solutions, and Consumer Impact Recovery. The company’s collectors call consumers out of the blue and threaten them with arrest, wage garnishment, and lawsuits if they don’t pay a supposed debt.
According to the complaint, however, the debts GCI is attempting to collect either don’t exist at all or are not debts GCI can legally collect. The company’s calls to consumers can be incessant, with some receiving calls multiple times a day, leaving voicemails saying to call about an urgent legal matter. When consumers answer, they’re told that, unless they pay the bogus debts on that phone call using a credit or debit card, they’ll face legal peril.
Categories: Debt Collection Practices – Deceptive Business Practices
FTC-PR-241104-2 (11-04-24)