Call Us About Your Debt, We Are Definitely Not A Government Agency
The Federal Trade Commission says a federal court entered a $106.8 million default judgment against a group of corporate defendants tied to Accelerated Debt Settlement. The court permanently banned the operators from the debt-relief industry after the FTC alleged they impersonated banks, credit-card companies and government agencies.
The complaint alleged that the operation contacted consumers through telemarketing, direct mail and online advertising. It allegedly promised to cut debts by 75% or more, collected illegal advance fees, and used official-looking identities to make the pitch feel less like a pitch.
Targeting People Who Already Have Enough Problems
The FTC specifically says the operation targeted seniors and veterans. The October 14 order bars the defendants from debt-relief services, telemarketing, impersonation and a long list of misrepresentations about savings, credit records and cancellation policies.
That is a special kind of scam logic: find someone already drowning in bills, put on a fake institutional voice, and charge them for the privilege of being lied to by an apparently official stranger.
The Bottom Line
The FTC says money collected from individual defendants could become available for consumer redress. A court judgment is not the same thing as money in every victim’s account, but it is at least a formal declaration that “we can fix your debt” is not a business plan when the fix is another debt.
Source
Federal Trade Commission: Court permanently shuts down illegal debt-relief operation