Its collectors allegedly threatened consumers with arrest and imprisonment to deceive and force them into paying “phantom debts,” which were never owed in the first place or had already been paid.
The FTC also alleged that the defendants used other tactics to threaten consumers into paying such as contacting co-workers and family members about supposed owed debts, threatening to revoke drivers licenses and lowering credit scores, and garnishing wages.
When consumers attempted to challenge the scammers on the validity of their debt claims, Critical Resolution Mediation allegedly used profane language and refused to allow consumers to review key information regarding their debt, a direct violation of the FDCPA.
A federal court granted the FTC’s request for an order to shut down the operations of Critical Resolution Mediation.
This marks another big victory in the FTC’s ongoing battle against phantom debt collectors who have fleeced consumers for millions of dollars over the course of the last few decades.
