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Persistence pays off. Three years ago, I told you the FTC and New York Attorney General (NY AG) announced complaints against debt collectors that allegedly used a slew of abusive and deceptive tactics to pressure consumers into making payments on questionable debts.

Today, the FTC and NY AG announced final orders that permanently ban 4 Star Resolution, LLC, six related companies, and three individual defendants from the debt collection industry.

The defendants allegedly threatened consumers with lawsuits, arrest, imprisonment, seizure of property, or garnishment of wages if consumers did not make immediate payments on purported debts. The complaint alleges they claimed or implied they were acting on behalf of law enforcement or the courts, and often impersonated attorneys, investigators, or process servers. Defendants also concealed their true identities and locations by using bogus company names, spoofed phone numbers, and mail drops throughout the U.S. and Ontario, Canada. According to the complaint, the collectors used abusive language, failed to provide consumers with proof of the purported debt, and told third parties, including consumers’ family members, friends, and employers, about the alleged debts. All of these actions are against the law.

In a related criminal case, the U.S. Attorney’s Office for the Southern District of New York obtained 14 guilty pleas from individuals involved in the scheme, including two of the defendants from the FTC’s lawsuit who were each sentenced to more than 7 years in prison. The FTC’s referral of this matter to federal prosecutors is part of the agency’s long-standing partnerships with criminal law enforcement to help protect consumers. To learn more about the assistance the FTC provides to prosecutors, visit the FTC’s Criminal Liaison Unit page.

Understanding your legal rights when dealing with debt collectors can help you avoid the bad ones who will say anything to get you to pay.

 

 

If you believe a collector has violated those rights, the FTC wants to hear about it. Your complaint gives us a lead to follow up on, and may stop it from happening to someone else.

If you need help regaining control of your finances, check out the FTC’s free information.

14 Comments


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The purpose of this blog and its comments section is to inform readers about Federal Trade Commission activity, and share information to help them avoid, report, and recover from fraud, scams, and bad business practices. Your thoughts, ideas, and concerns are welcome, and we encourage comments. But keep in mind, this is a moderated blog. We review all comments before they are posted, and we won’t post comments that don’t comply with our commenting policy. We expect commenters to treat each other and the blog writers with respect.

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JO
March 22, 2018
Justice!!!!
Haddy
March 22, 2018

In reply to by JO

Thank you. Ive been hounded and pursued by one of the criminal companies/individual for 5 years. Its good to know there is justice for consumers if we persist.
Shambala
March 22, 2018
Thank you for your success that is finally getting some justice for well deserved criminals. Each time that you offer your news about these situations, you are also educating the public throughout our country. I hope that you receive awards again for this hard hitting despicable, and corrupt behavior that is going to be stopped, because of your interventions and continued education for the citizens of this country.
Don'gitty64t u…
March 22, 2018

I have been sending you so much information on these so called grants that people now like Jason White who says he is the boss for the federal treasury An I’m to be receiving a grant but first I have to pay an initiation fee, then their was a tact fee all these fees are paid via ITunes cards. I’ve send phone numbers names an messages. They even sent me a copy of a Federal Check made out to me for the amount of the grant. Please contact me.

GG3
March 22, 2018
Great to hear this. A consumer victory over total scum.
kjoy
March 22, 2018
Thank you so much
Jb
March 22, 2018
So glad to hear this cause they do it so Much and never get caught.... we need tbe attorney General of new york to come to California and show ours how it's done...
sirjohn2015
March 22, 2018

I am sick of these rotten scammers and its no more evident when these folks claim to be from the IRS and they are in the state of TX and let's hope our FTC people stop them and arrest them and hit all of them with hefty fines for their cruel and nasty tactics they use on us people in our nation today. FTC is for our concerns in everything that gets our attention and the above news article is a must read for all of us. Don't get taken . HEADS UP!!!!

#90863999
March 22, 2018
I want help in getting money refund $2,000. I want this impostor of claiming she, Burgess IRIES, is a Federal Grant Representative. Her and her boss CHARLES and one other person which I identified on my REPORT BE HELD ACCOUNTABLE for their action,
bojo333
March 23, 2018

Thank you for closing them down. I didn't make a report but I got a text message from Cash Net USA insisting I owed the 350 and penalties and interest is Dailey. I ignored it. Then I received another one and responded, Sue Me. Haven't heard from them since. I didn't know they were contacting so many, I would have filed a complaint. I don't have the texts now. Thank you

DesMoinesBlond
March 26, 2018
I have used many of the different resources that the government provides online and as a teacher, I shared the information with students (the Website). I just wish that it was easier to forward the information such as the above, which I would like to share with my children.
Regine
May 01, 2018
I have a same problem about scum for the person name is Selena Gleen he told me that he direct to hired me as a nanny, and he give me some details,and in that time he told me first that he give me on a good salary,and that details showed I need to pay $310,for labor fee,and I get that transaction labor I seen another person, pop up that I seen the name,Paige Denison different address from Selena Gleen,then I think doubt or hesitate that they want me to pay through money gram. Hoping for your good cooperation on it because I Already send my personal information to them..
JMH#
November 05, 2018
this Phone # 619- 354-6305 continue to call me I have called it back and they would not give me any info unless I gave them my ssn# and phone # I asked to speak to a supervisor and that put my on hold and never came back
jford1956
November 16, 2018
Scram with college loan payment.don't get my loans forgiven or reduced the companies Alumni Aids Assistance got payment from me to put my loans into deferment, also interest owed on them can keep growing. Student Aid Centers made some situation worse by telling people to stop contact their lenders.