WASHINGTON — The Federal Trade Commission (FTC) has filed an amended complaint against Global Circulation, Inc. (GCI) and its owner, Kenneth Redon III, alleging they used threats of jail time, lawsuits, and wage garnishments to coerce consumers into paying nonexistent or uncollectible debts. The FTC’s proposed order, announced on May 3, 2025, would permanently ban GCI and Redon from the debt collection industry and impose a $9.6 million judgment.
“Using a playbook of intimidation and threats of jail time to coerce consumers into paying debts that they don’t owe is beyond the pale,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “The FTC will not hesitate to act against phantom debt collectors to shut down their operations.”
The FTC alleges that GCI and Redon operated under fictitious company names, contacting consumers unexpectedly to demand payment for debts that either did not exist or were not legally collectible by GCI. The agency claims the defendants falsely posed as affiliates of specific lenders, violating the FTC’s Impersonation Rule. Additionally, GCI and Redon failed to identify themselves as debt collectors, breaching the Fair Debt Collection Practices Act (FDCPA), and unlawfully obtained consumers’ financial information, violating the Gramm-Leach-Bliley Act.
In November 2024, the FTC secured a temporary restraining order to halt GCI’s operations. The amended complaint, filed in the U.S. District Court for the Northern District of Georgia, builds on these allegations, detailing how the defendants’ tactics misled and intimidated consumers. The Commission voted 3-0 to authorize the filing of the complaint and the stipulated final order, which awaits approval by a District Court judge.
The proposed order imposes stringent measures on GCI and Redon, including a permanent ban from debt collection and debt brokering activities. It also prohibits them from misrepresenting affiliations or material facts in the sale or promotion of goods and services and from further violations of the Impersonation Rule and Gramm-Leach-Bliley Act. A monetary judgment of $9,684,338 is included, though it will be suspended upon the surrender of their remaining assets. If Redon or GCI are found to have misrepresented their finances, they will be required to pay the full amount.
The case is being handled by FTC Bureau of Consumer Protection attorneys Gregory Ashe and Sarah Abutaleb. The FTC emphasized that complaints are filed based on “reason to believe” that defendants are violating the law, and stipulated final orders carry the force of law once signed by a judge. The action reflects the FTC’s ongoing efforts to protect consumers from fraudulent debt collection practices, particularly those involving intimidation and false claims.
Consumers affected by similar schemes are encouraged to report incidents to the FTC, which continues to monitor and address violations in the debt collection industry. The case underscores the importance of compliance with federal consumer protection laws and the consequences for deceptive practices.
