The Federal Trade Commission (FTC) has taken decisive action against Global Circulation, Inc. (GCI), a Georgia-based debt collection agency, accusing the company of using unlawful tactics to coerce consumers into paying more than $7.6 million in false debts. According to the FTC, GCI and its owner, Kenneth Redon III, misled consumers by making threats of jail time, harassing their family members, and using various other illegal practices to collect bogus debts.
Following a federal complaint filed by the FTC, a federal court has ordered a temporary suspension of GCI’s operations and directed the company to transfer its assets to a court-appointed receiver.
“Debt collectors should know that harassing families and making empty threats of jail time is illegal,” stated Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “This action should send a clear message that illegal collection practices will come with heavy consequences.”
Deceptive Practices Alleged in FTC Complaint
The FTC’s complaint describes a range of predatory practices by GCI and Redon. Using fictitious names like Total Mediation Solutions, Total Consumer Solutions, and Consumer Impact Recovery, GCI’s collectors reportedly cold-called consumers, threatening arrest, wage garnishment, and lawsuits if the debts were not immediately paid.
The FTC further alleges that many of the debts targeted by GCI either don’t exist or are legally uncollectible. Consumers frequently received persistent calls, sometimes multiple times a day, with voicemails indicating an urgent legal issue. Upon answering, individuals were reportedly pressured to make immediate payments via credit or debit cards to avoid “legal peril.”
In some instances, the company allegedly contacted family members of the targeted consumers, delivering similar legal threats, even after directly engaging with the primary consumer.
The FTC complaint also accuses GCI of routinely failing to disclose their identity as debt collectors—a clear violation of the Fair Debt Collection Practices Act (FDCPA). Representatives were often in possession of, or claimed to have, sensitive personal information about consumers, which they used to add legitimacy to their demands for payment.
These deceptive practices and the urgency of GCI’s claims reportedly pushed thousands of consumers into paying at least $7.6 million in fabricated debts.
Court Ruling and Ongoing Case
On October 29, 2024, the court issued a temporary restraining order, freezing GCI’s assets and placing the company under the control of a court-appointed receiver. This restraining order will remain in effect as the case progresses.
The FTC’s unanimous 5-0 vote in favor of filing the complaint reflects the agency’s commitment to upholding fair collection practices and protecting consumers from deceptive tactics. The complaint was submitted to the U.S. District Court for the Northern District of Georgia.
Important Note
The FTC files a complaint when it has “reason to believe” that the named defendants are violating or are likely to violate the law and considers it in the public interest to proceed with legal action. The final decision in the case will be made by the court.
Author: Jennifer Evancic
Jennifer.Evancic@ResourceManagement.com
Jennifer Evancic is a third-party auditor valued by creditors and large organizations for her knowledge in call monitoring within the collections industry. With meticulous attention to detail and a firm grasp of regulatory requirements, she ensures compliance with clients’ criteria and state and federal regulations.
Jennifer audits collections calls, ensuring they meet client-specific criteria and comply with regulations, providing valuable insights and maintaining industry standards.
Beyond her auditing responsibilities, Jennifer takes the lead in organizing and facilitating monthly call calibrations. These sessions serve as a collaborative forum where clients and their vendors come together to discuss call monitoring results and address any findings or areas for improvement. Jennifer’s guidance fosters open communication and ensures alignment between clients and vendors, driving continuous improvement in collections practices.
Jennifer stays up-to-date with compliance and industry best practices by participating regularly in peer meetings, regulatory updates and industry webinars. This keeps her informed about emerging issues and ensures she remains a knowledgeable leader in collections compliance.
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