Debt Collectors Receive Lifetime Ban in Settlement with FTC, Pennsylvania AG

  • The FTC and Pennsylvania AG Michelle Henry settled with International Credit Recovery, Inc. and two related individuals (collectively, “ICR”) to resolve allegations that ICR engaged in fraudulent debt collection efforts against organizations including schools, fire and police departments, and non-profits.
  • According to the complaint, ICR worked in conjunction with American Future Systems, Inc. (AFS) to target the organizations, in which AFS telemarketers would allegedly offer to send free samples of books or newsletters for an organization to try, but would then enroll the entity in a subscription program for the materials without consent. When the organizations did not pay for the unwanted subscriptions, AFS would forward their accounts to ICR, which would use false threats to collect on the fraudulent debts.
  • Under the terms of the settlement, ICR and the two related individuals are permanently banned from engaging in debt collection activities. They must also cooperate with the ongoing case against AFS and other co-defendants.