FTC Action Results in Court Issuing Temporary Restraining Order Halting Phantom Debt Collection Operation

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.  “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,” said Christopher Mufarriage, Director of the FTC’s Bureau of Consumer Protection. “We are pleased that the court stopped this scheme—sending a clea…