On November 4, the FTC has taken action against a debt collection business and its owner for allegedly deceiving consumers into paying over $7.6 million in fake debts. According to the FTC’s complaint, the defendants contacted consumers under a number of false names, threatening them with arrest, lawsuits, and wage garnishment if they failed to pay up. The defendants’ actions were alleged to have violated Section 5 of the FTC Act for unfair and deceptive practices, the FDCPA and Regulation F for abusive collection practices, and Section 521 of the GLBA for obtaining consumer information through false or fraudulent means. Following the grant of an ex parte restraining order against the defendant, the matter remains pending in the U.S. District Court for the Northern District of Georgia.
