KANSAS CITY, Mo., September 18, 2015/PRNewswire/ --Reform Online Lending (ROL) today praised the Federal Trade Commission’s “game over” sanction against Broadway Global Master Inc. and In-Arabia Solutions Inc. The action permanently bans these companies from the debt collection business for their alleged fraud in harassing consumers into paying phantom debts.
“The resolution of the FTC’s recent settlement is a big win for the innocent consumers who were defrauded out of more than $5.2 million,” said Mark Curry, founder of Reform Online Lending. “The FTC’s action is also a boost for legitimate online lenders, who represent a majority of this marketplace. Additionally, the FTC sanctions help ROL in our effort to create a safer borrowing space by weeding out the bad actors.”
Phantom debt collection occurs when fraudsters harass consumers to collect on debt that is not owed. These collectors often use intimidating and illegal tactics to collect on this non-existent debt. According to the FTC’s order, the operators of this recent phantom debt collection scheme are prohibited from making falsifications about any product or service, using customers’ personal information for profit or inadequately disposing of any customer information.
“We strongly support the FTC’s decision to deliver such harsh sanctions to the fraudulent operators who are contaminating the marketplace,” Curry said. “It is our hope that actions like these will protect current and future consumers from becoming victims of this kind of fraud.”
ReformOnlineLending.org is a program of entrepreneur and industry leader Mark Curry to identify and bring justice to scammers who take advantage of consumers of the online financial services industry. The program is designed to educate American consumers on the scams that are perpetrated in the online lending industry, and to work with government authorities to prosecute scammers who seek to take advantage of the industry's millions of consumers.
Reform Online Lending
SOURCE Reform Online Lending