The Federal Trade Commission has crushed a predatory debt collection agency with a $9.68 million penalty for extorting money from innocent consumers through fake lawsuits and impersonation schemes.
Key Takeaways
- Global Circulation, Inc. (GCI) and owner Kenneth Redon III collected over $4.5 million by coercing consumers to pay debts they didn’t actually owe
- The FTC obtained a $9.68 million judgment against the company for violations of the FTC Act, Fair Debt Collection Practices Act, and other regulations
- Defendants threatened consumers with arrest and legal action while impersonating legitimate creditors to appear authentic
- The court permanently banned the company from debt collection activities and ordered the destruction of all unlawfully obtained consumer data
- A 20-year compliance monitoring requirement has been imposed to prevent future violations
Systematic Deception and Fraud
On April 30, 2025, the U.S. District Court for the Northern District of Georgia delivered a powerful blow against fraudulent debt collection practices, stated by “Global Circulation, Inc. (GCI)” and its owner, Kenneth Redon III, were hit with a $9.68 million judgment for orchestrating a massive scheme that violated multiple federal laws, including the FTC Act, Fair Debt Collection Practices Act (FDCPA), Regulation F, Gramm-Leach-Bliley Act (GLBA), and the FTC’s Impersonation Rule. GCI systematically contacted consumers about debts they either didn’t owe or that GCI had no authority to collect, using intimidation and deception to extract payments.
The company’s fraudulent tactics were comprehensive and calculated. GCI used fictitious business names to appear legitimate while falsely claiming affiliation with actual creditors. The collection agency targeted vulnerable consumers with alleged debts that were often already paid, never sold as charged-off loans, or completely fabricated. Through these deceptive methods, GCI successfully collected more than $4.5 million from innocent consumers who were bullied into paying money they didn’t legitimately owe.
Coercive Tactics and Legal Violations
The FTC’s investigation revealed egregious violations of consumer protection laws. GCI repeatedly threatened consumers with arrest and legal action that would never materialize. These false threats were designed to create fear and panic, pushing individuals to make payments simply to end the harassment. The company also deliberately shared sensitive debt information with consumers’ family members, violating privacy protections established under federal law and creating embarrassment and additional pressure on their targets.
Beyond their collection tactics, GCI illegally accessed consumer financial information in violation of the stated by, “Gramm-Leach-Bliley Act” the company failed to provide legally required disclosures under the FDCPA and Regulation F, which are designed to ensure consumers understand their rights when dealing with debt collectors. These violations weren’t occasional oversights but represented a business model built entirely on deception and intimidation of American consumers.
Swift FTC Action and Severe Penalties
The FTC took decisive action to halt GCI’s predatory practices, obtaining a temporary restraining order in November 2024 that effectively shut down the operation. A receivership was established to manage and liquidate the defendants’ assets, ensuring that ill-gotten gains would be properly handled. The final judgment delivered on April 30, 2025, permanently bans GCI and Redon from all debt collection and debt brokering activities, effectively ending their ability to victimize consumers in this industry.
The $9.68 million monetary judgment will be suspended contingent upon the defendants turning over their assets. The court has also mandated the complete destruction of all consumer data obtained during the scheme, preventing the information from being used for future fraud or sold to other bad actors. Additionally, the defendants must provide regular acknowledgments, reporting, and recordkeeping for the next twenty years, ensuring long-term compliance monitoring.
Protecting Hardworking Americans
This case represents a significant victory for consumer protection under stated by, “President Trump’s administration” The aggressive action taken by the FTC demonstrates a commitment to protecting hardworking Americans from predatory financial practices. The comprehensive nature of the judgment – including the permanent ban, monetary penalties, data destruction requirements, and long-term monitoring – creates a powerful deterrent for other companies that might consider similar fraudulent practices.
While the $9.68 million judgment is substantial, the true impact lies in preventing future harm to countless consumers who might have fallen victim to GCI’s tactics. The FTC’s action sends a clear message that deceptive debt collection practices will not be tolerated, regardless of how sophisticated or extensive the scheme may be. American consumers deserve protection from financial predators who use intimidation and deception to extract undeserved payments.
