On June 4, the FTC announced settlements with a North Carolina-based debt collection business and its principals resolving allegations that the business violated the FTC Act and the Fair Debt Collection Practices Act (FDCPA) by making false, unsubstantiated, or misleading representations regarding debt owed on payday loans or other debts and threatening legal action. As previously covered in InfoBytes, the business allegedly used a variety of “trade names” that sound like law firms to threaten individuals if they failed to pay debt they did not actually owe or that the defendants had no right to collect. The terms of the settlement call for a $2.7 million judgment against the business and one of the principals, as well as a $1.8 million judgment against the remaining principal, with all parties jointly and severally liable for approximately $1.6 million. The judgments will be partially suspended after defendants surrender certain assets. The settlements also prohibit all defendants from debt collection activities as well as from buying or selling debt in the future.