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FTC shuts down fake payday loan collection scam

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Federal Trade Commission, Plaintiff, v.

Pinnacle Payment Services, LLC,

Velocity Payment Solutions, LLC,

Heritage Capital Services, LLC,

Performance Payment Processing, LLC,

Credit Source Plus, LLC (Georgia),

Credit Source Plus, LLC (Ohio),

Reliable Resolution, LLC,

Premium Express Processing, LLC (Ohio),

Premium Express Processing, LLC (Georgia),

 

Lisa J. Jeter, Nichole C. Anderson, Hope V. Wilson, Angela J. Triplett, and DeMarra J. Massey, Defendants

(United States District Court for the Northern District of Georgia)
FTC File No. 1323043
Case No. 1:13-CV-3455

 

At the request of the Federal Trade Commission, a U.S. district court has halted an operation based in Atlanta and Cleveland that allegedly used deceptive and threatening tactics to collect phantom payday loan “debt” that consumers either did not owe, or did not owe to the defendants. The court order freezes the defendants’ assets to preserve the possibility of providing redress to consumers, and appoints a receiver.

 

According to the FTC, the defendants operated under a host of fictitious business names that implied an affiliation with a law firm or a law enforcement agency, such as Global Legal Services, Allied Litigation Group, United Judgment & Appeals, Dockets Liens & Seizures, and United Judgment Center. Using robocalls and voice messages that threatened legal action and arrest unless consumers responded within a few days, the defendants have collected and processed millions of dollars in payment for phantom debts, according to the complaint. Their practices have generated almost 3,000 complaints to the FTC’s Consumer Sentinel.

 

According to documents filed with the court, a typical message stated: “[T]his is the Civil Investigations Unit. We are contacting you in regards to a complaint being filed against you, pursuant to claim and affidavit number D00D-2932, where you have been named a respondent in a court action and must appear. There is a contact number on file which you must call, 757-301-4745. Please forward this information to your attorney in that the order to show cause contains a restraining order. You or your attorney will have 24 to 48 hours to oppose this matter.”

Working out of offices in Cleveland and Atlanta, the defendants threatened consumers that if they did not pay, their bank accounts would be closed, their wages would be garnished, they would face felony fraud charges, they would have to appear in court thousands of miles from their homes, or they would be arrested at their workplace, according to documents filed with the court. Many consumers ended up paying the defendants for debts they did not owe because they feared the threatened repercussions of failing to pay, believed the defendants were legitimate and collecting real debts, or simply wanted to stop the harassment, according to the complaint.

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FTC released an announcement yesterday that these scum were fined over $9 million and permanently banned from collection activities (direct or indirect).

 

Details of the injunction here.

 

That's all the FTC can do. They are limited to civil remedies. However, looking at the case including the fact the US Marshals came to help the receiver take control over all records, I expect the DoJ is doing its thing as well and expect indictments and eventually a long stay in the federal prison system.

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That's all the FTC can do. They are limited to civil remedies. However, looking at the case including the fact the US Marshals came to help the receiver take control over all records, I expect the DoJ is doing its thing as well and expect indictments and eventually a long stay in the federal prison system.

Based on the amount of loss, that will be a very, very long stay indeed.

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FTC released an announcement yesterday that these scum were fined over $9 million and permanently banned from collection activities (direct or indirect).

 

Details of the injunction here.

 

That's all the FTC can do. They are limited to civil remedies. However, looking at the case including the fact the US Marshals came to help the receiver take control over all records, I expect the DoJ is doing its thing as well and expect indictments and eventually a long stay in the federal prison system.

 

There is much "win" in that statement. Would be awesome if it were to happen.

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There is much "win" in that statement. Would be awesome if it were to happen.

It is extremely likely to happen. It's a slam-dunk case and would be politically popular to prosecute. Even assuming the benefit of an extraordinarily lenient plea deal, they'll be very lucky to get any less than ten years in federal prison, along with forfeiture of all their assets to pay for restitution and permanent, non-dischargeable restitution debts, enforced and collected by the federal government, for the rest of their lives after they are released.

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I've had the dubious honor of being courted by these "alleged" perps. This has been a great week for watching justice befall my gentlemen (and lady) callers. Godspeed, @ssho1es.

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There is much "win" in that statement. Would be awesome if it were to happen.

It is extremely likely to happen. It's a slam-dunk case and would be politically popular to prosecute. Even assuming the benefit of an extraordinarily lenient plea deal, they'll be very lucky to get any less than ten years in federal prison, along with forfeiture of all their assets to pay for restitution and permanent, non-dischargeable restitution debts, enforced and collected by the federal government, for the rest of their lives after they are released.

 

 

Yup...they get to enjoy paying a huge debt with no SOL...that's karma, indeed!

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I never get the good phone calls.

 

:(

 

I think it has something to do with the fact I don't have a phone # from a major provider

and I don't have a cell phone that I use for personal use / give away the # to.

 

Maybe I should paint it on a bathroom stall and see what happens.

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I never get the good phone calls.

 

:(

 

I think it has something to do with the fact I don't have a phone # from a major provider

and I don't have a cell phone that I use for personal use / give away the # to.

 

Maybe I should paint it on a bathroom stall and see what happens.

Me neither. I could have so much fun with these toads.

Edited by cashnocredit

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FTC released an announcement yesterday that these scum were fined over $9 million and permanently banned from collection activities (direct or indirect).

 

Details of the injunction here.

 

That's all the FTC can do. They are limited to civil remedies. However, looking at the case including the fact the US Marshals came to help the receiver take control over all records, I expect the DoJ is doing its thing as well and expect indictments and eventually a long stay in the federal prison system.

 

Nah, don't need a long stay. Bring them to USP Terre Haute and execute them bastages.

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I've had the dubious honor of being courted by these "alleged" perps. This has been a great week for watching justice befall my gentlemen (and lady) callers. Godspeed, @ssho1es.

That was so elegantly stated Ms. HL!!

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I've had the dubious honor of being courted by these "alleged" perps. This has been a great week for watching justice befall my gentlemen (and lady) callers. Godspeed, @ssho1es.

That was so elegantly stated Ms. HL!!

Thanks...I even did a little curtsy at the end. :P

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I've had the dubious honor of being courted by these "alleged" perps. This has been a great week for watching justice befall my gentlemen (and lady) callers. Godspeed, @ssho1es.

That was so elegantly stated Ms. HL!!

Thanks...I even did a little curtsy at the end. :P

 

 

:grin:

Edited by FromBadtoGood

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FTC released an announcement yesterday that these scum were fined over $9 million and permanently banned from collection activities (direct or indirect).

 

Details of the injunction here.

 

That's all the FTC can do. They are limited to civil remedies. However, looking at the case including the fact the US Marshals came to help the receiver take control over all records, I expect the DoJ is doing its thing as well and expect indictments and eventually a long stay in the federal prison system.

 

Nah, don't need a long stay. Bring them to USP Terre Haute and execute them bastages.

 

 

Nah. when they get out they get to have their salaries garnished for the rest of their life. Very fitting.

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FTC released an announcement yesterday that these scum were fined over $9 million and permanently banned from collection activities (direct or indirect).

 

Details of the injunction here.

 

That's all the FTC can do. They are limited to civil remedies. However, looking at the case including the fact the US Marshals came to help the receiver take control over all records, I expect the DoJ is doing its thing as well and expect indictments and eventually a long stay in the federal prison system.

 

Nah, don't need a long stay. Bring them to USP Terre Haute and execute them bastages.

 

 

Nah. when they get out they get to have their salaries garnished for the rest of their life. Very fitting.

 

I know - pay them slave wages to break rocks into gravel in the prison yard then garnish their wages while inside!!

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Scum. Not even Pond Scum.

 

At least Pond Scum has use. lol

 

:clapping: to shutting down blatant scammers that take the money with IMPUNITY!!!

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