WASHINGTON—The Federal Trade Commission is sending payments totaling more than $1 million to 1,966 consumers who were harmed by a debt collection scheme that conned consumers into paying debts they did not owe.
The defendants used several names including GAFS Group, Global Mediation Group, and Mediation Services.
“Consumers will be recovering all the money they lost to the scammers, averaging $516 for each payment. Consumers will receive either a PayPal payment or a check in the mail,” the FTC said.
The FTC sued GAFS Group in February 2019 for falsely claiming to be attorneys or affiliated with attorneys, pressuring consumers into making payments on debts they did not owe. The defendants threatened to take legal action against consumers if they did not pay these phantom debts. In December 2019, the defendants agreed to a settlement that permanently banned them from debt collection, debt brokering activities, misleading consumers, and from misrepresenting to consumers whether they are attorneys, the FTC said.
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