The Federal Trade Commission (FTC) has taken decisive actions against Global Circulation, Inc. (GCI) and its owner, Kenneth Redon III, based on allegations of illegal debt collection practices. The FTC claims that the company used coercion tactics, including threats of jail, lawsuits, and wage garnishments, to force consumers into paying debts they did not owe.
In the amended complaint, the FTC accused GCI and Redon of falsely claiming connections with specific lenders, thus violating the FTC's Impersonation Rule. The proposed order aims to ban both from engaging in any debt collection activities permanently.
"Using a playbook of intimidation and threats of jail time to coerce consumers into paying debts that they don’t owe is beyond the pale,” stated Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “The FTC will not hesitate to act against phantom debt collectors to shut down their operations.”
Back in November 2024, the FTC obtained a temporary restraining order, effectively halting the fraudulent operations of GCI. The allegations include contacting consumers under false pretenses, issuing arrest threats, attempting to collect nonexistent debts, failing to identify as debt collectors per the Fair Debt Collection Practices Act (FDCPA), and unlawfully acquiring financial information against the Gramm-Leach-Bliley Act.
Under the terms of the proposed order, Redon and GCI face several prohibitions. They cannot collect or brokering debts anymore, misrepresent facts related to any goods or services, or falsely claim affiliations with any businesses. Furthermore, they must adhere to federal laws such as the FTC's Impersonation Rule and the Gramm-Leach-Bliley Act.
The monetary judgment of $9,684,338 will be suspended once Redon and GCI surrender their remaining assets. However, the full payment will be mandated if they are found to have misrepresented their financial status.
The FTC Commission voted unanimously to file the amended complaint and stipulated the final order in the U.S. District Court for the Northern District of Georgia. The action reflects the Commission's commitment to public interest, with such orders becoming enforceable upon court approval.
The case is managed by FTC staff attorneys Gregory Ashe and Sarah Abutaleb from the Bureau of Consumer Protection.
