FTC Shuts Down Debt Collector for Deceptive and Illegal Practices

SheppardMullin reports that the Federal Trade Commission (FTC) filed an amended complaint and final order in Federal Trade Commission v. Global Circulation, Inc. and Kenneth Redon III.

Global Circulation is a debt collection company owned by Redon that is accused of using deception and coercion to collect illegitimate debts.

The FTC alleges that the company violated the FTC Act, the Fair Debt Collection Practices Act, Regulation F, the Gramm-Leach-Bliley Act, and the FTC’s Impersonation Rule. The final order resulted in a permanent ban on the company’s debt collection activities and a suspended judgment of $9.68 million.

The FTC’s complaint outlines a pattern of misconduct spanning several years, during which Global Circulation allegedly employed intimidation tactics and misrepresented its products to manipulate consumers.

The company is accused of falsely threatening arrest and legal action, impersonating legitimate lenders, and using fictitious business names to appear credible.

In addition, the defendants allegedly accessed consumers’ financial information unlawfully and failed to meet the legal disclosure requirements under the FDCPA and Regulation F. They also reportedly contacted third parties, including family members, and improperly shared personal debt information.

The court’s order imposes strict penalties, permanently prohibiting Redon and Global Circulation from both brokering and debt collection. It also bans impersonation, false representations, and unauthorized access to financial data.

The $9.68 million judgment will be suspended if the company turns over its assets, including bank accounts, cryptocurrency, and personal property.

Additionally, the order requires the destruction of consumer data collected during the alleged scheme and enforces a 20-year compliance and record-keeping obligation to prevent future violations.

According to SheppardMullin, attorneys should be aware that although the role of the Consumer Financial Protection Bureau under Trump is unclear, the FTC, as well as state financial regulators, remain active and aggressive as of now.