FTC Shuts Down Bogus Payday Debt Collectors in Cleveland, Atlanta

October 24, 2013
Cleveland Plain Dealer (OH) 
debt settlement news

The Federal Trade Commission (FTC) has had call centers in Cleveland and Atlanta shuttered after an investigation into bogus payday debt collection calls. Workers at the call centers harassed U.S. consumers to pay debts on payday loans that they did not owe and sometimes never even took out.

This is the fifth suit that the FTC has filed alleging bogus payday debt collection calls. Consumers say callers threatened them with lawsuits or felony charges, prompting some of them to pay money out of fear. The FTC got a court order halting the call centers and temporarily freezing their assets. If the agency wins the suit, consumers may recover at least some of their money. The complaint names Credit Source Plus LLC, which has offices in Georgia and Ohio, and Ohio-based Premium Express Processing as well as some of their partners and principals. The suit alleges multiple violations of the FTC Act and the Fair Debt Collection Practices Act.

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