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Action requiredFTCNov 14, 2026

FTC Enforcement Action: Phantom Debt Collection

The FTC secured a temporary restraining order against McDonnell & Associates LLC for engaging in phantom debt collection practices, which involved misleading consumers about debts they allegedly owed. This enforcement action underscores the ongoing regulatory scrutiny on debt collection practices.

The FTC secured a temporary restraining order against McDonnell & Associates LLC for engaging in phantom debt collection practices, which involved misleading consumers about debts they allegedly owed. This enforcement action underscores the ongoing regulatory scrutiny on debt collection practices.

What changed

Immediate cessation of operations for the defendant and asset freezes were enforced.

Compliance perspective

Debt collectors must ensure their practices comply with lawful collection methods to avoid similar enforcement actions.

Key date

Effective date: November 5, 2026.

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