ATLANTA (CBS46) — The Atlanta-based debt collection company, Critical Resolution Mediation LLC, and its owners will soon be banned from the industry, according to a press release from the Federal Trade Commission.
According to the FTC, the company and its agents threatened consumers with arrest and imprisonment and tried to collect debts that consumers did not actually owe.
The FTC said that employees would regularly pose as law enforcement officers, attorneys, mediators and process servers.
In addition to be banned from the debt collection business, the defendants are also prohibited from representing themselves as attorneys or as an affiliate with a law firm. They are also prohibited from making any misleading claims while selling a product or service.
The company is also required to destroy any consumer information they have within 30 days and prevents them from profiting from that information in any way.
Additionally, they are required to may more than $266K to the commission as part of the settlement. The total monetary judgment of more than $3 million is partially suspended upon that payment due to the defendants’ inability to pay. If the defendants are found to have misrepresented their financial condition, then the full amount of the judgment will be immediately due.