FTC to Ban Debt Collector Who Allegedly Coerced Consumers into Paying Debt They Didn’t Owe

The Federal Trade Commission alleged that Global Circulation, Inc. (GCI) and its owner, Kenneth Redon III, threatened consumers with jail time, lawsuits, and wage garnishments to pressure them into paying debt they didn’t actually owe. In an amended complaint, the FTC further alleged that GCI and Redon falsely claimed affiliation with specific lenders to trick consumers into paying, a violation of the FTC’s Impersonation Rule. The FTC’s proposed order would permanently ban GCI and Redon from the debt collection business.

“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,” said 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.”

In November 2024, the FTC obtained a temporary restraining order shutting down the fraudulent debt collection scheme. The FTC alleged that GCI and Redon:

• Contacted consumers under a number of fictitious company names,
• Called consumers out of the blue and threatened them with arrest, wage garnishment, and lawsuits if they didn’t pay a supposed debt,
• Attempted to collect debts that either didn’t exist at all or were not debts GCI could legally collect,
• Failed to identify themselves as debt collectors as required by the Fair Debt Collection Practices Act (FDCPA), and
• Unlawfully obtained consumers’ financial information in violation of the Gramm-Leach-Bliley Act.

Under the proposed order, Redon and GCI will be:

• Permanently banned from debt collection and debt brokering activities;
• Prohibited from misrepresenting any material fact related to the sale, promotion or marketing of any good or service; and
• Prohibited from misrepresenting their affiliation or connection to any person or business and from violating the FTC’s Impersonation Rule and the Gramm-Leach-Bliley Act.

The order also imposes a monetary judgment of $9,684,338, which will be suspended after

Redon and GCI turn over their remaining assets. GCI and Redon will be required to pay the full amount if they are found to have lied about their finances.

The Commission voted 3-0 to authorize the staff to file the amended complaint and stipulated final order in the U.S. District Court for the Northern District of Georgia.

NOTE: The Commission files a complaint when it has “reason to believe” that the named defendant(s) are violating or are about to violate the law, and it appears to the Commission that a proceeding is in the public interest. Stipulated final orders have the force of law when approved and signed by the District Court judge.

The staff attorneys on this matter are Gregory Ashe and Sarah Abutaleb of the FTC’s Bureau of Consumer Protection.