FTC Has Court Power Down Collector of Fake Pay Day Loan Debts

FTC Has Court Power Down 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 purchase freezes the defendants’ assets to protect the likelihood of supplying redress to consumers, and appoints a receiver.

Based on the FTC, the defendants operated under a bunch of fictitious company names that implied an affiliation having law practice or a police agency, such as worldwide Legal Services, Allied Litigation Group, United Judgment & Appeals, Dockets Liens & Seizures payday loans Virginia, and United Judgment Center. Making use of robocalls and sound messages that threatened legal action and arrest unless customers responded in a few days, the defendants have actually gathered and processed huge amount of money in re re payment for phantom debts, in line with the issue.Read more