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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