The Federal Trade Commission (FTC) has initiated legal action against Global Circulation, Inc. (GCI), a debt collection company based in Georgia, and its owner, Kenneth Redon III. The FTC alleges that the company tricked consumers into paying over $7.6 million in non-existent debts by using threats of jail time and harassment.
A federal court has responded to the FTC's complaint by temporarily halting GCI's operations and ordering the company to hand over its assets to a court-appointed receiver. Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, stated: “Debt collectors should know that harassing families and making empty threats of jail time is illegal.” He emphasized that such practices would have serious consequences.
According to the FTC's complaint, GCI used fictitious names like Total Mediation Solutions, Total Consumer Solutions, and Consumer Impact Recovery when contacting consumers. The company's collectors allegedly threatened consumers with arrest, wage garnishment, and lawsuits for debts that either did not exist or were not legally collectible by GCI.
The complaint further states that some consumers received multiple calls daily from GCI demanding immediate payment via credit or debit card under threat of legal action. In certain cases, GCI also contacted family members of consumers with similar threats.
GCI representatives reportedly failed to identify themselves as debt collectors as required by law and claimed to possess sensitive personal information to lend credibility to their demands. This approach convinced many consumers to pay substantial sums in bogus debts.
On October 29, 2024, a temporary restraining order was issued by the court freezing the defendants' assets and placing the company under a receiver's control while legal proceedings continue. The Commission unanimously voted 5-0 to authorize filing the complaint in U.S. District Court for the Northern District of Georgia.
The FTC reminds consumers it never demands money or makes threats. Consumers are encouraged to learn more about their rights at consumer.ftc.gov or report fraudulent activities at ReportFraud.ftc.gov.
