The FTC alleges that McDonnell & Associates LLC and other defendants used false legal threats and other deceptive tactics to collect more than $20 million in debts consumers often did not owe. A federal court issued a temporary restraining order freezing the defendants’ assets and placing the company under a court-appointed receiver while the case continues.
The court’s temporary restraining order halts the operation, freezes the defendants’ assets, and places the company under the control of a court-appointed receiver while the case continues.
Review vendor agreements with debt collectors and collection-service providers for warranties requiring compliance with debt collection laws, accurate representation of collection authority, and delivery of required disclosures and debt validation notices. Add restrictions on false or coercive threats, requirements to substantiate debts before collection, audit and record-access rights, prompt escalation of consumer complaints and regulatory inquiries, and termination or suspension rights for unlawful conduct. Customer agreements governing collections should clearly allocate responsibility for notices and validation, while privacy and data-processing terms should limit use of consumer information to authorized collection purposes and require appropriate oversight of collection vendors.
Entity
McDonnell & Associates LLC, also doing business as First Capital Group
Industry
Financial ServicesOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2026/11/ftc-action-results-court-issuing-temporary-restraining-order-halting-phantom-debt-collection
FCG TRO
https://www.ftc.gov/system/files/ftc_gov/pdf/FCG-TRO.pdf
FCG Complaint
https://www.ftc.gov/system/files/ftc_gov/pdf/FCG-Complaint.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"McDonnell & Associates LLC, also doing business as First Capital Group"
"The court’s temporary restraining order, issued on November 5, 2026"
"the defendants did not make legally required disclosures"
"The defendants also failed to provide consumers with legally required debt validation notices"
"The FTC alleges that the defendants’ deceptive conduct violated the FTC Act, the Fair Debt Collection Practices Act and the Gramm-Leach-Bliley Act."
"The court’s temporary restraining order, issued on November 5, 2026, freezes the defendants’ assets and puts the company under the control of a court-appointed receiver while the case continues."
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$49.8M
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