Don’t look now, but there was an enforcement action involving a debt collection company announced by a federal regulator. The Federal Trade Commission has obtained an injunction that halts the operations and freezes the assets of a pair of defendants — Ryan and Mitchell Evans — which operated a multitude of companies, including Blackrock Services, Blackstone Legal Group, Capital Legal Services, Quest Legal Group, Viking Legal Services, and others.
The background: According to the FTC’s complaint, the lawsuit stems from a widespread pattern of deceptive tactics used by the defendants to coerce consumers into paying debts that did not exist or that the defendants had no authority to collect.
- Consumers received dire-sounding warning letters or phone calls claiming they owed money to a payday lender or another creditor. These messages threatened legal action, wage garnishment, and even arrest if recipients did not pay immediately.
- The FTC further alleges that the defendants went so far as to impersonate legitimate businesses and law firms, complete with websites that displayed ominous “warnings” of imminent lawsuits.
- A key factor prompting the lawsuit was the use of extensive personal data — including portions of consumers’ Social Security numbers — in the letters. The FTC maintains that such highly specific information gave consumers the false impression that these entities were legitimate, ultimately pressuring many to pay a debt they did not owe.
The claims: The complaint accuses the defendants of multiple illegal practices. First, they allegedly misrepresented themselves as attorneys or members of a law firm. Second, the FTC claims they violated the Fair Debt Collection Practices Act by failing to disclose that they were acting as debt collectors and by making threats — arrest, property liens, and wage garnishment — that they could not legally enforce. Additionally, the complaint highlights that the defendants impersonated existing businesses, violating the FTC’s Rule on Impersonating Government and Businesses.
- The temporary restraining order seeks to stop these unlawful acts, protect consumers from further harm, and preserve funds for potential restitution.
