FTC Stops Debt Collection Scheme That Targeted Spanish-Speaking Consumers

At the request of the Federal Trade Commission, a U.S. district court judge in Miami has temporarily shut down a fraudulent phantom debt collection operation that allegedly deceived Spanish-speaking consumers across the country.

On October 20, the FTC filed a complaint against Centro Natural Corp., Sumore LLC, and several individual defendants alleging that defendants illegally collected over $2 million from consumers.  The court issued a temporary restraining order against the defendants on the same day that the complaint was filed.

In its complaint, the FTC charged that "Defendants use deceptive and abusive tactics to pressure consumers to 'settle' debts that consumers do not actually owe and to pay for goods consumers do not seek or want ... .  They threaten consumers with harsh consequences, such as arrest or referral to law enforcement, if consumers fail to make the payments that Defendants demand."