At the request of the Federal Trade Commission, a U.S. District Court has halted several debt operations that allegedly deceived and abused consumers.

The companies, operating as Rincon Debt Management, allegedly made bogus threats that consumes had been sued or could be arrested over debts they often didn’t even owe. The companies called consumers and their employers, friends, family and neighbors, posing as process servers seeking to deliver legal papers that was supposedly related to a lawsuit. These practices, which aren’t unique to this collection company, are blatant violations of the Fair Debt Collection Practices Act.

This is the 2nd consecutive month that a debt collection company has had their operations halted by the FTC’s investigations and actions.

Fortunately, the FTC seems to be taking a much tougher stance on these sort of collection companies. Unfortunately, there are dozens more that are still operating in violation of many of the laws that apply to them.

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