FTC Takes Action Against Phantom Debt Collector That Collected Millions in Bogus Debt From Consumers

Excerpt:  “The Federal Trade Commission is taking action against a Georgia-based debt collector that tricked consumers into paying more than $7.6 million in bogus debt by threatening them with jail time, harassing their family members, and other unlawful actions. In response to a federal court complaint filed against Global Circulation, Inc. (GCI) and its owner, Kenneth Redon, III, the court agreed to temporarily halt the company’s operation and ordered it to turn its assets over to a court-appointed receiver. … In its complaint, the FTC alleges that GCI and Redon contacted consumers under a number of fictitious company names, …. The company’s collectors call consumers out of the blue and threaten them with arrest, wage garnishment, and lawsuits if they don’t pay a supposed debt. According to the complaint, however, the debts GCI is attempting to collect either don’t exist at all or are not debts GCI can legally collect.”