WASHINGTON, D.C. — The Federal Trade Commission (FTC) has intervened against Global Circulation, Inc. (GCI), a Georgia-based debt collection agency accused of deceiving consumers into paying over $7.6 million in non-existent debts. The agency’s aggressive tactics included threats of imprisonment and harassment of consumers’ family members, practices that violate federal law.
The FTC’s complaint, filed in federal court, outlines a series of allegations against GCI and its owner, Kenneth Redon, III. According to the complaint, the company operated under several fictitious names, such as Total Mediation Solutions, Total Consumer Solutions, and Consumer Impact Recovery, to deceive consumers. GCI’s collectors purportedly used high-pressure tactics, including threats of arrest, wage garnishment, and lawsuits unless immediate payment was made.
Notably, these threats were often baseless; the debts either did not exist or were not legally enforceable by GCI. The company employed relentless calling strategies, often contacting consumers multiple times daily and leaving urgent voicemails. Collectors reportedly demanded immediate payment via credit or debit card during these calls, creating a false sense of legal urgency among consumers.
The complaint further alleges that GCI extended its harassment tactics to consumers’ family members, perpetuating these threats even after direct contact with the consumer had been established. Such practices blatantly disregard the Fair Debt Collection Practices Act (FDCPA), which mandates that debt collectors must identify themselves and prohibits harassment or abuse of debtors.
In a decisive development, a federal court issued a temporary restraining order on October 29, 2024, effectively freezing GCI’s assets and placing the company under a court-appointed receiver’s control. This order aims to cease the company’s operations while legal proceedings continue, safeguarding consumers from further deceptive practices.
Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, emphasized the gravity of the situation, stating that debt collectors resorting to harassment and empty threats face significant legal consequences. This action underscores the FTC’s commitment to protecting consumers from predatory collection practices.
As the case against GCI proceeds, it serves as a stark warning to other debt collectors about the repercussions of employing deceitful tactics. The FTC remains vigilant in its efforts to enforce consumer protection laws and hold violators accountable. Consumers are encouraged to report any suspicious debt collection activities to the FTC to aid in ongoing regulatory efforts.
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