FTC and New York AG File Joint Suits Against Debt Collectors

FTC Debt Collection Litigation

On February 26, the FTC and the New York State Attorney General announced joint lawsuits to cease certain practices of two debt collection operations based in upstate New York.  The complaints allege that the defendants unlawfully used threats and abusive language, including false threats that consumers would be arrested, to collect more than $45 million in supposed debts.  The FTC and the State of New York are also seeking monetary relief to provide refunds to consumers.  FTC v. 4 Star Resolution LLC, No. 1:15-cv-00112-WMS (W.D.N.Y. Feb. 9, 2015), FTC v. Vantage Point Services, LLC, No. 1:15-cv-00006-WMS (W.D.N.Y. Jan. 5, 2015).  The District Court has temporarily enjoined the defendants’ practices in both cases.