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Debt collection action halted

Daniel Gutierrez

Debt collection action halted

CREATED Oct. 25, 2013

A federal court halts the collection of allegedly fake payday debts.

The Federal Trade Commission requested the action, accusing an operation based in Atlanta and Cleveland, of deceptive and threatening practices. They allegedly were collecting fake debts that people didn't owe.

So here's what you need to know; A collection company must provide a written notice of any debt and they legally must give you at least 30 days to respond.

If you don't think you owe a debt, don't be afraid to dispute the claim and ask for more proof.

And if you think you've been mistreated by an abusive debt collector, file a complaint with the Federal Trade Commission.

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