The defendants’ debt collectors also allegedly pretended as law enforcement personnel and threatened consumers with arrests. Other collectors threatened consumers with lawsuits if they did not make a payment on their purported debt.
In a statement, FTC Bureau of Consumer Protection Director Andrew Smith said, “Together, the FTC and the New York Attorney General stopped the latest in a line of illegal and abusive debt collectors. As a result of this joint law enforcement action, Mr. Heidenreich will never again be allowed to collect debts.”
On the other hand, AG James stated, “We will not sit idly by as businesses extort payment from consumers by using illegal, deceitful tactics. Collecting on money that consumers do not owe, and doing so using false threats of arrest and other unscrupulous means is inexcusable and unlawful. My office is committed to protecting New Yorkers from illicit scams, and I thank the FTC for their partnership on this case.”
