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.
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In reply to Justice!!!! by JO
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.
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!!!!
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