Court Temporarily Halts Phantom Debt Collection Operation and Freezes Assets at FTC's Request
At the Federal Trade Commission's request, a federal court has temporarily halted and frozen the assets of a debt collection operation that allegedly used deceptive and unlawful tactics to pressure consumers into paying debts that they frequently did not owe, the FTC announced on November 9.
According to the complaint, McDonnell & Associates LLC, also doing business as First Capital Group, Maxwell & Bryant Group and Lewis, McDonnell & Associate LLC, and owners Oscar Gerardo Gonzalez Martin and Oscar Ruiz Canela, falsely claimed to be a law firm or affiliated with attorneys and used high-pressure tactics to coerce consumers to make payments on debts that the consumers often did not owe, a practice known as phantom debt collection. The complaint alleges the scheme collected over $20 million from consumers.
The defendants allegedly left deceptive voicemail messages to get consumers to respond and threatened to contact consumers' employers and family members if they did not pay. When consumers called back, the defendants allegedly threatened legal action, wage garnishment and liens on their properties, actions they did not take nor intend to take.
The FTC also alleges the defendants failed to make legally required disclosures, including that they were debt collectors, and failed to provide debt validation notices. In reality, most consumers did not owe the alleged debts, or the defendants lacked the authority to collect them.
"Pretending to be a law firm or affiliated with attorneys and threatening to contact consumers' employers and family members to induce consumers to pay debts they do not owe is illegal," the Director of the FTC's Bureau of Consumer Protection said.
(Source: U.S. Federal Trade Commission)
Source: U.S. Federal Trade Commission
Published by GSM · USA (original Chinese edition)
Photo: 图：位于华盛顿的美国联邦贸易委员会总部 Apex 大楼。Harrison Keely 摄，CC BY 4.0，经 Wikimedia Commons。 / Photo: The Apex Building, headquarters of the U.S. Federal Trade Commission in Washington, D.C. Photo by Harrison Keely, CC BY 4.0, via Wikimedia Commons.
