At the request of the
The FTC alleges that many consumers the defendants contacted had inquired about a payday loan online at one time, and submitted contact information, which later found its way into the defendants' hands.
"Many consumers in this case were victimized twice," said
The FTC alleged that the defendants' tactics violated the Federal Trade Commission Act and the Fair Debt Collection Practices Act. In addition to the deception and false threats, the defendants violated federal law by telling consumers' family members, employers, and co-workers about the debt; failing to identify themselves as debt collectors; using profanity; making repeated inconvenient or prohibited calls; failing to provide information in writing about the debt; and making unauthorized withdrawals from consumers' bank accounts.
This is the FTC's sixth recent case charging "phantom debt" scams with law violations. Other cases include
For more consumer information on this topic, see Dealing with Debt.
The Commission vote authorizing the staff to file the complaint was 5-0. The complaint was filed in the
NOTE: The Commission files a complaint when it has "reason to believe" that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court.
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