The Federal Trade Commission has filed a lawsuit and received a temporary restraining order freezing the assets and taking control over a Georgia-based debt collection agency, Global Circulation, Inc., after it was accused of using deceptive and abusive tactics to collect debts from consumers. The complaint, filed in the District Court for the Northern District of Georgia, alleges that the agency tricked consumers into paying more than $7.6 million by falsely representing debts and threatening extreme consequences, including lawsuits, asset seizures, and even arrest.
The defendants, Global Circulation, Inc., and its sole owner Kenneth Redon III, are accused of violating multiple federal laws, including the FTC Act, the Fair Debt Collection Practices Act, and Regulation F. The FTC’s investigation found that the agency made repeated misrepresentations to consumers, claiming they were delinquent on payday loans or other debts. In many cases, these debts were either non-existent or were not owed to at all. To add legitimacy to their threats, the defendants often had access to private information, such as Social Security numbers and bank account details, which were used to pressure consumers into compliance.
The FTC’s complaint also highlights that the defendants used unlawful and abusive methods, including harassing phone calls made to consumers’ family members, threats of arrest, and failing to disclose their identity as debt collectors. Additionally, the defendants often failed to provide legally required notices, such as written communications disclosing the amount of debt, the name of the creditor, and the consumer’s right to dispute the debt within 30 days.
The court has issued a temporary restraining order, freezing the assets of the agency and appointing a receiver to take control of the company. The FTC is pursuing permanent injunctive relief, monetary compensation, and other remedies to protect consumers. “There is good cause to believe that immediate and irreparable harm will result from Defendants’ ongoing violations,” noted the court order, citing consumer declarations and complaints as evidence.
