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“Operation Corrupt Collector”: A Nationwide Crackdown on Phantom and Abusive Debt Collection

  • The Federal Trade Commission (“FTC”) has undertaken a nationwide initiative titled “Operation Corrupt Collector” to crack down on phantom debt collectors and abusive debt collection practices, targeting debt collectors who employ such illegal practices as collecting on debt not owed, using threatening or deceptive robocalls, and falsely threatening consumers with improper legal action.
  • To date, Operation Corrupt Collector includes more than 50 enforcement actions by the FTC, the Consumer Financial Protection Bureau, 16 AGs, and other federal law enforcement agencies.
  • The initiative also includes consumer education and an online dashboard for reports received from consumers of collection attempts on debts not owed and other abusive collection practices.