Sun.May 18, 2025

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FTC Settles with Debt Collector

Collection Industry News

On May 1, 2025, the Federal Trade Commission (FTC)announcedthat it had filed anamended complaintand entered into aproposed final orderwitha debt collector and its owner, resolving allegations that the company engaged in a fraudulent debt collection scheme. In its amended complaint, the FTC alleged that the debt collector used threats of arrest, lawsuits, wage garnishment, unlawful third-party communications, and repeated communications, to coerce consumers into paying debts they did not owe, in