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Watch Out For Scam Debt Collectors

The Federal Trade Commission shut down a debt collector that used fictitious names and threatened consumers into paying debts they may not have owed.

Pinnacle Payment Services LLC and its principals are barred from debt collection and subject to a $9,384,628 judgment, which has been suspended for most defendants due to their inability to pay.

Jessica Rush, Director of the FTC’s Bureau of Consumer Protection, said Pinnacle “threatened many consumers by telling them their bank accounts would be closed, their wages garnished, they would face felony fraud charges, or they would be arrested if they failed to pay the phantom debts.”

According to the FTC complaint filed in 2013, the defendants collected millions of dollars. Many of the consumers who paid did not owe the debt. In order to heighten the threat, the Pinnacle defendants used fake business names implying an affiliation with a law firm or law enforcement agency, such as Global Legal Services, Allied Litigation Group, and Dockets Liens & Services.

If a debt collector is threatening you contact my office for a free consultation.

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