The CFPB filed a lawsuit Wednesday against the leaders of a debt collection operation for harassing, threatening and misleading consumers. The payment processors and a telemarketing company that provided the platform for the criminals were also included in the suit.
Marcus Brown of New York and Mohan Bagga of Georgia allegedly led the group of individuals and entities that deceived consumers into paying debt they did not actually owe. The group formed companies such as Universal Debt Solutions, LLC, Check & Credit Recovery, LLC and Credit Power, LLC, to carry out the scheme. Each company is mentioned in the CFPB's complaint.
According to the complaint, Bagga and Brown violated the law by threatening consumers with jail time, legal action and wage garnishment to collect the phantom debt.
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