Liz Crenshaw's Guide to Consumer Issues, Recalls and More

FTC Stops Debt Collection Scams

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    NEWSLETTERS

    TK
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    Tuesday the Federal Trade Commission (FTC) announced it put a stop to two fake debt scams that bilked millions of dollars from consumers.

    The FTC said two Florida-based companies worked with a call center in India and called consumers with threatening debt collecting tactics.

    The FTC said the companies took $5 million from consumers who either did not owe the debt or owed a debt to someone else.

    The government said the companies also used a phony interest rate reduction scheme.

    The calls were placed between January 2010 and August 2011.

    The FTC said it imposed a judgment of more than $25 million against the companies.