Consumers Receive $1 million in Refunds as FTC Busts Debt Collection Scam

Advocate Andy

Nearly 2000 consumers were scammed by Global Asset Financial Services

The Federal Trade Commission (FTC) has announced that 1966 consumers who were scammed by Global Asset Financial Services in a "phantom debt" scheme will receive refunds totaling more than $1 million.

The scam by Global Asset involved representatives of the company telling consumers they were attorneys or were working with attorneys and would take legal action to collect debts. However, the consumers called did not owe a legitimate debt and the company's representatives were falsely representing themselves as attorneys.

An FTC settlement agreement reached with Global Asset permanently banned them from debt collection.

Consumers responded to the scam by issuing payment to Global Asset, even though there was no debt they owed. In other words, the coercive power of potential legal action resulted in fraudulent payments to the company.

The average payment in the scam was $516. Each consumer who was defrauded in the scheme will receive 100% of the money they paid by way of a refund through the FTC.

Consumers who believe they were defrauded by Global Asset or who have received a payment connected with the case and have questions should call the refund administrator, Analytics, at 866-948-2713.

The FTC says it returned more than $400 million to consumers in 2021 alone. The agency has an interactive dashboard where refunds can be tracked by state.

The FTC cautions consumers about false threats of legal action over the phone. It is unlawful for agencies to use threats to collect debt and any legal action should be presented to a consumer in writing. If a caller is threatening legal action over a debt, consumers should ask for all the information about the debt in writing.

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Andy Spears is a middle Tennessee writer and policy advocate. He reports on news around public policy issues - education, health care, consumer protection, and more.

Nashville, TN
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