The Federal Trade Commission (FTC) has scored a significant victory for consumers by putting a stop to a deceptive phantom debt collection scheme that has been preying on individuals across the nation. The FTC’s legal action has resulted in a federal court issuing a temporary restraining order to halt the illegal operations of the scam and freeze the assets of the individuals behind it.
The fraudulent scheme, operating under various names such as Blackrock Services, Blackstone Legal Group, Capital Legal Services, Quest Legal Group, and Viking Legal Services, has allegedly caused millions of dollars in losses to consumers. At the heart of this deceptive operation are Ryan and Mitchell Evans, along with their network of affiliated companies, who are accused of running a widespread phantom debt collection scheme.
The defendants’ employees and affiliates reportedly sent deceptive letters and made harassing phone calls to consumers, falsely claiming that the recipients owed a debt linked to payday loans or other sources. Threats of legal action, wage garnishment, damage to credit reports, arrest, and seizure of homes were used to intimidate individuals into paying these fabricated debts. The letters often contained personal details like the last four digits of Social Security numbers to appear more legitimate, exploiting consumers’ fears.
Furthermore, the operators behind the scheme went as far as impersonating legitimate law firms and government agencies, violating the FTC’s Rule on Impersonating Government and Businesses to gain credibility and instill confusion and anxiety among victims.
The FTC’s complaint also alleges violations of the Fair Debt Collection Practices Act (FDCPA), as the defendants failed to properly identify themselves as debt collectors and used various business names and websites to deceive consumers. The FTC has taken legal action to halt the illegal activities of the defendants and provide restitution to affected consumers, filing the complaint in the U.S. District Court for the Central District of California with unanimous approval.
This lawsuit represents the FTC’s commitment to safeguarding consumers from phantom debt collection scams. The court’s temporary restraining order will prevent further fraudulent activities while the case progresses, aiming to provide justice and relief to those harmed. As the legal proceedings continue, the court will determine appropriate measures against the defendants, emphasizing the importance of protecting vulnerable individuals from financial threats posed by deceptive schemes.
Consumers are advised to exercise caution when dealing with debt collectors and report any suspicious activity to the FTC. The agency’s swift action against this deceptive scheme underscores the crucial role of federal agencies in holding fraudsters accountable and safeguarding consumers’ financial well-being.