Los Angeles, March 5, 2025 –The FTC has shut down a fake debt collection ring that used fear tactics and lies to extort millions from consumers. Victims were threatened with arrests, wage garnishments, and lawsuits for debts they never owed.
The Federal Trade Commission (FTC) has taken down a massive fake debt collection scam that terrorized consumers with bogus threats of lawsuits, arrests, and home seizures.
The fraudulent operation, which ran under multiple names including Blackrock Services, Quest Legal Group, and Viking Legal Services—is accused of stealing millions from unsuspecting victims by falsely claiming they owed money on payday loans and other debts.
This ruthless scheme operated across California, New York, and Texas, using deceptive letters, aggressive phone calls, and stolen Social Security numbers to appear legitimate. Victims were coerced into paying non-existent debts out of fear of financial ruin.
FTC Chair Lina Khan said:
They scared people into paying fake debts with threats of jail time.
The FTC’s lawsuit led to a court-ordered asset freeze and a temporary restraining order against the scammers, halting their fraudulent operations.
Scammers posed as law firms and government agencies, a direct violation of the Fair Debt Collection Practices Act (FDCPA). Now, the FTC is pushing for full restitution for affected consumers. A consumer rights attorney Mark Reynolds:
This wasn’t just fraud—it was intimidation, exploitation, and outright theft.
Scammers exploited stolen data, ExpressVPN encrypts your online activity, keeping your personal information out of the hands of fraudsters.
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