FTC Halts Collection of ‘Phantom Debts’

Defendants allegedly collected millions of dollars from consumers for debts they did not owe.

2/11/2019 11:30 AM

FTC Halts Collection of ‘Phantom Debts’

The U.S. District Court for the Western District of North Carolina – Charlotte Division, at the request of the Federal Trade Commission, issued a temporary restraining order to halt a debt collection scheme resulting in consumers paying debts they did not know.

According to a news release from the FTC, Global Asset Financial Services Group LLC, operating in in North Carolina and New York, “falsely claimed to be attorneys or affiliated with attorneys to pressure consumers into making payments on debts they did not owe, and threatened to take legal action against consumers if they did not pay.”

The FTC’s complaint, filed in the district court Feb. 4, names 10 companies and six individuals as proposed defendants.

The complaint charged that the defendants’ deceptive and unfair tactics violated the FTC Act and the Fair Debt Collection Practices Act.

When there are admissible facts evidencing egregious conduct, ACA International supports law enforcement efforts to target bad actors, stop illegitimate debt collection activity, and safeguard consumer rights by removing known violators from the financial marketplace.  ACA has worked consistently with the FTC and other regulators to help them understand the complex issues that legitimate debt collectors face, and takes pride in its frequent and varied industry compliance educational services and offerings in support of the overwhelming majority of legitimate debt collectors who operate lawfully, take consumer protection seriously and play a unique and much-needed role in our credit-based economy.

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