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FTC Has Court Turn Off Collector of Fake Pay Day Loan Debts

FTC Has Court Turn Off Collector of Fake Pay Day Loan Debts

Patrick Lunsford

A U.S. district court has granted a temporary restraining order halting an operation based in Atlanta and Cleveland that allegedly used deceptive and threatening tactics to collect phantom payday loan “debts” that consumers either did not owe, or did not owe to the defendants at the request of the Federal Trade Commission. The court order freezes the defendants’ assets to preserve the chance of supplying redress to customers, and appoints a receiver.

In line with the FTC, the defendants operated under a number of fictitious company names that implied an affiliation with a statutory lawyer or a police force agency, such as for example Global Legal Services, Allied Litigation Group, United Judgment & Appeals, Dockets Liens & Seizures, and United Judgment Center. Utilizing robocalls and sound messages that threatened legal action and arrest unless customers responded in just a few days, the defendants have actually collected and prepared vast amounts in payment for phantom debts, based on the issue. Their techniques have actually created very nearly 3,000 complaints to your FTC’s customer Sentinel.

The issue charges the defendants with breaking the FTC Act in addition to Fair Debt Collection methods Act (FDCPA) by falsely telling people who: