A U.S. district court has granted a temporary restraining order halting an operation based in Atlanta and Cleveland that allegedly used deceptive and threatening tactics to collect phantom payday loan вЂњdebtsвЂќ that consumers either did not owe, or did not owe to the defendants at the request of the Federal Trade Commission. The court purchase freezes the defendantsвЂ™ assets to protect the chance of supplying redress to customers, and appoints a receiver.
In accordance with the FTC, the defendants operated under a bunch of fictitious company names that implied an affiliation by having law practice or a police force agency, such as for example worldwide Legal Services, Allied Litigation Group, United Judgment & Appeals, Dockets Liens & Seizures, and United Judgment Center. Utilizing robocalls and vocals messages that threatened legal action and arrest unless customers reacted in just a few days, the defendants have actually gathered and prepared huge amount of money in re payment for phantom debts, in line with the problem. Their methods have actually produced almost 3,000 complaints towards the FTCвЂ™s Consumer Sentinel.