FTC Wins $4 Million in Refunds to Debt Collection Victims
The business owners will also be banned from the debt-collection industry and must give up its business assets.
“Consumers shouldn’t be subjected to threats and intimidation,” said an FTC spokeswoman. “We’re pleased that victims of this scheme will be getting money back from the defendants.”
Asset Capital allegedly engaged in a scheme to set up multiple business entities that pretended to be court officials, threatening arrest, wage garnishment, and asset seizure.
Under the federal Fair Debt Collection Practices Act (FDCPA), debt collectors are typically prohibited from making these types of threats. Debt collectors are also prohibited from engaging in any other behavior that is unfair or deceptive.