On September 29, 2020, the Federal Trade Commission (FTC) announced that it had filed a pair of lawsuits in federal district court against two debt collection companies, related entities, and owners for allegedly violating the Federal Trade Commission Act (“FTC Act”) and the Fair Debt Collection Practices Act (“FDCPA”). The FTC suits were part of a larger nationwide effort by the agency called “Operation Corrupt Collectors” to crack down on deceptive debt collection practices and tactics.
According to the FTC complaints, available here and here, the companies allegedly used deceptive practices to collect debts from consumers, including practices such as leaving voicemail messages which implied the consumer was being audited or subject to some legal proceedings. Additionally, the FTC alleged the companies would threaten legal action if consumers did not immediately pay debts.
The complaints were filed in the United States District Court of the District of South Carolina. Both actions seek injunctive relief as well as monetary relief, including restitution, consumer refunds, and disgorgement.