WASHINGTON (Sputnik) — The US Federal Trade Commission (FTC) and the New York State Attorney General’s Office filed complaints to shut down two illegal debt collection operations and related individuals in Buffalo, New York, according to a FTC statement.
“The Federal Trade Commission is pleased to work with the New York Attorney General to stop abusive debt collectors,” FTC Bureau of Consumer Protection Director Jessica Rich said on Thursday.
The authorities filed a complaint against 4 Star Resolution, six other corporate entities and three individuals for threatening consumers into making payments on supposed debts, according to the statement.
4 Star’s representatives refused to provide consumers documentation of proof of debt, informing them they would receive proof in court or only after the debt was paid, according to the statement.
The FTC and New York Attorney General have also targeted Vantage Point Services for misleading consumers that they had committed a crime, and informing them an arrest warrant would be issued unless they paid the alleged debts.
Moreover, Vantage Point used third parties such as supposed debtors’ friends to try to collect debts by informing the supposed debtors that they had committed a crime, and refused to provide identity information over phone with their consumers, according to the statement.
The FTC and New York Attorney General are also seeking to provide a full refund to the consumers, the statement said.
