Consumers Targeted by Phony Debt Collection Scheme to Receive Refunds

The defendants in this case are permanently banned them from the debt collection industry

Consumers Targeted by Phony Debt Collection Scheme to Receive Refunds
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July 26, 2018

Consumers who were targeted by debt collectors and tricked into paying debts that they did not really owe will soon receive a refund check from the Federal Trade Commission (FTC).

The FTC is mailing checks that collectively total more than $184,000 to victims of this con.

Ignored evidence of invalid debts, falsely threatened arrest or litigation for failure to pay

In October 2015, the FTC and the State of New York charged a group of defendants known as Delaware Solutions with collecting on debts that they knew were bogus.

According to the complaint, the defendants ignored evidence that the supposed debts were invalid, failed to identify themselves as debt collectors, falsely portrayed themselves as process servers or attorneys, and falsely threatened arrest or litigation for failure to pay.

As part of the settlement reached with the FTC and the State of New York, the defendants agreed to an order that permanently banned them from the debt collection industry.

The average refund amount is this case is $308.37 per impacted consumer. The refund checks must be deposited or cashed with 60 days of the date on the check or they will become void.

Beware of Scams

Always keep in mind that the FTC NEVER requires consumers to pay money or provide personal information to cash refund checks. If anyone asks for such information, it's likely a scam. Any suspected fraud attempts should be reported to the FTC immediately.

Get More Info

Consumers with questions about this case or the refund process should contact the FTC's refund administrator, Analytics Consulting LLC, at (855) 687-2078.

To learn more about the FTC's refund program, visit ftc.gov/refunds.