Phantom debt

FTC Acts to Shut Down Unlawful Debt Collection Operation

Retrieved on: 
Thursday, October 15, 2020

In many cases, the defendants were attempting to collect on so-called phantom debtdebts that either were never owedor debts that were no longer owed.

Key Points: 
  • In many cases, the defendants were attempting to collect on so-called phantom debtdebts that either were never owedor debts that were no longer owed.
  • The case was brought as part of the Operation Corrupt Collector law enforcement sweep.
  • The defendants also refused to provide information about the alleged debts as required under the Fair Debt Collection Practices Act (FDCPA).
  • The complaint charges that Critical Resolution Mediation LLC, Parliament Services LLC, and Brian Charles McKenzie violated both the FTC Act and the FDCPA.

FTC Acts to Shut Down Unlawful Debt Collection Operation

Retrieved on: 
Thursday, October 15, 2020

In many cases, the defendants were attempting to collect on so-called phantom debtdebts that either were never owedor debts that were no longer owed.

Key Points: 
  • In many cases, the defendants were attempting to collect on so-called phantom debtdebts that either were never owedor debts that were no longer owed.
  • The case was brought as part of the Operation Corrupt Collector law enforcement sweep.
  • The defendants also refused to provide information about the alleged debts as required under the Fair Debt Collection Practices Act (FDCPA).
  • The complaint charges that Critical Resolution Mediation LLC, Parliament Services LLC, and Brian Charles McKenzie violated both the FTC Act and the FDCPA.

FTC, State, and Federal Law Enforcement Partners Announce Nationwide Crackdown on Phantom and Abusive Debt Collection

Retrieved on: 
Tuesday, September 29, 2020

The Federal Trade Commission, along with more than 50 federal and state law enforcement partners, today announced a nationwide law enforcement and outreach initiative to protect consumers from phantom debt collection and abusive and threatening debt collection practices.

Key Points: 
  • The Federal Trade Commission, along with more than 50 federal and state law enforcement partners, today announced a nationwide law enforcement and outreach initiative to protect consumers from phantom debt collection and abusive and threatening debt collection practices.
  • This crackdown encompasses more than 50 enforcement actions against debt collectors engaged in these illegal practices brought by the FTC, three federal partners, and partners from 16 states.
  • The initiative, called Operation Corrupt Collector, includes five FTC law enforcement actions, including two newly announced cases and settlements in three prior actions.
  • The two new FTC cases allege that companies were trying to collect debts they cannot legally collect or that a consumer does not owea practice known as phantom debt collection.

FTC, State, and Federal Law Enforcement Partners Announce Nationwide Crackdown on Phantom and Abusive Debt Collection

Retrieved on: 
Tuesday, September 29, 2020

The Federal Trade Commission, along with more than 50 federal and state law enforcement partners, today announced a nationwide law enforcement and outreach initiative to protect consumers from phantom debt collection and abusive and threatening debt collection practices.

Key Points: 
  • The Federal Trade Commission, along with more than 50 federal and state law enforcement partners, today announced a nationwide law enforcement and outreach initiative to protect consumers from phantom debt collection and abusive and threatening debt collection practices.
  • This crackdown encompasses more than 50 enforcement actions against debt collectors engaged in these illegal practices brought by the FTC, three federal partners, and partners from 16 states.
  • The initiative, called Operation Corrupt Collector, includes five FTC law enforcement actions, including two newly announced cases and settlements in three prior actions.
  • The two new FTC cases allege that companies were trying to collect debts they cannot legally collect or that a consumer does not owea practice known as phantom debt collection.

Operation Corrupt Collector cracks down on illegal debt collection tactics

Retrieved on: 
Tuesday, September 29, 2020

Thats the message of Operation Corrupt Collector, a coast-to-coast crackdown by the FTC, three other federal agencies, and partners from 16 states.

Key Points: 
  • Thats the message of Operation Corrupt Collector, a coast-to-coast crackdown by the FTC, three other federal agencies, and partners from 16 states.
  • Operation Corrupt Collector encompasses more than 50 actions challenging some of the worst-of-the-worst debt collection tactics, including phantom debt collection the practice of coercing consumers to pay debts they dont owe or the company has no right to collect.
  • As part of Operation Corrupt Collector, the FTC has announced two new cases and settlements in three pending actions.
  • Operation Corrupt Collector also includes two actions filed by the Consumer Financial Protection Bureau, three criminal cases brought by the Department of Justice and U.S.

FTC Stops Phantom Debt Collection Scheme

Retrieved on: 
Friday, February 8, 2019

At the Federal Trade Commissions request, a federal court has temporarily halted and frozen the assets of a debt collection scheme that allegedly bilked consumers out of millions of dollars, using deceptive and threatening tactics to collect phantom debts that they did not owe.

Key Points: 
  • At the Federal Trade Commissions request, a federal court has temporarily halted and frozen the assets of a debt collection scheme that allegedly bilked consumers out of millions of dollars, using deceptive and threatening tactics to collect phantom debts that they did not owe.
  • One of the companies behind the operation, Midwestern Alliance, is a debt broker that allegedly bought, sold, and placed fake debt portfolios that it obtained from former payday loan generator Joel Tucker even after consumers said they did not recognize the debt or had already paid it.
  • The complaint charged that the defendants deceptive and unfair tactics violated the FTC Act and the Fair Debt Collection Practices Act.
  • This action is part of the FTCs continuing crackdown on all players involved in phantom debt schemes, including those who sell fake debt portfolios and those who harass consumers to collect the phony debt.

FTC Stops Phantom Debt Collection Scheme

Retrieved on: 
Friday, February 8, 2019

At the Federal Trade Commissions request, a federal court has temporarily halted and frozen the assets of a debt collection scheme that allegedly bilked consumers out of millions of dollars, using deceptive and threatening tactics to collect phantom debts that they did not owe.

Key Points: 
  • At the Federal Trade Commissions request, a federal court has temporarily halted and frozen the assets of a debt collection scheme that allegedly bilked consumers out of millions of dollars, using deceptive and threatening tactics to collect phantom debts that they did not owe.
  • One of the companies behind the operation, Midwestern Alliance, is a debt broker that allegedly bought, sold, and placed fake debt portfolios that it obtained from former payday loan generator Joel Tucker even after consumers said they did not recognize the debt or had already paid it.
  • The complaint charged that the defendants deceptive and unfair tactics violated the FTC Act and the Fair Debt Collection Practices Act.
  • This action is part of the FTCs continuing crackdown on all players involved in phantom debt schemes, including those who sell fake debt portfolios and those who harass consumers to collect the phony debt.

The Masked Ringer

Retrieved on: 
Friday, February 8, 2019

Consider The Masked Singer, a surprise TV hit in which a panel of celebrities tries to guess the identity of other celebrities who sing karaoke while wearing elaborate disguises.

Key Points: 
  • Consider The Masked Singer, a surprise TV hit in which a panel of celebrities tries to guess the identity of other celebrities who sing karaoke while wearing elaborate disguises.
  • According to the FTC, the defendants are part of a large phantom debt collection operation.
  • The defendant debt collectors are charged with multiple violations of the FTC Act and the Fair Debt Collection Practices Act .
  • But even at this early stage, the lawsuit is a reminder to industry members to scrutinize what youre buying and selling.