Debt Articles

FTC Sends a Bit of Cash to Debt Collection Scam Victims

Written by Steve Rhode

The Federal Trade Commission is mailing 597 checks totaling more than $184,000 to people who were allegedly tricked into paying phony debts.

In October 2015, the FTC and the State of New York charged a group of defendants known as Delaware Solutions with collecting on debts that they knew were bogus. According to the complaint, the defendants ignored evidence that the debts were invalid, failed to identify themselves as debt collectors, falsely portrayed themselves as process servers or attorneys, and falsely threatened arrest or litigation for failure to pay. The defendants agreed to – and in August 2016, a federal court in New York entered – an order that permanently banned them from the debt collection industry.

The average refund amount is $308.37. Recipients should deposit or cash checks within 60 days, as indicated on the check. The FTC never requires people to pay money or provide account information to cash a refund check. If recipients have questions about the refund program, they should contact the FTC’s refund administrator, Analytics Consulting LLC, at 855-687-2078.

To learn more about the FTC’s refund program, visit www.ftc.gov/refunds.

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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