FTC Sends $12M To Victims of Debt Collector and Office Supplies Schemes

The FTC recently sent out refund checks to consumers who may have been deceived by Global Processing Solutions and Midway Industries.

Global Processing Solutions FTC Checks

On Sept. 4, the Federal Trade Commission (FTC) announced that it was sending out 3,977 refund checks to consumers in connection with a recent debt collection scheme by Global Processing Solutions.

The checks are worth a combined total of $516,000 with an average refund amount of $129.

According to the FTC, Global Processing Solutions utilized “false claims and threats” to collect on debts that were not valid or debts that the defendants were not eligible to collect.

The company reportedly operated under multiple names, including Global Processing and Advanced Mediation Group. In some cases, the debts had already been paid or Advanced Mediation had no authority to collect the debts, according to the FTC.

Global Processing Solutions allegedly told consumers that they would be sued, have their wages garnished, or be thrown in jail if they didn’t pay their debts.

The Advanced Mediation operator allegedly committed further violations of federal law by contacting employers and other third parties in connection with debt collection. To top it all off, the companies reportedly failed to provide written notices and disclaimers as required by debt collection laws.

The FTC sought justice against Global Processing Solutions and other operators, resulting in a settlement. This settlement is funding the FTC refund checks recently sent out by the agency.

If consumers receive a refund check from the FTC, they should cash the check within 60 days. Any further questions can be directed to the refund administrator Rust Consulting at 1-877-465-4816.

Midway Industries FTC Checks

On Aug. 30, the FTC announced that it was mailing 29,333 checks worth a combined total of more than $11.6 million. The checks are refunding consumers who were deceived by an office supply scheme which tricked companies into paying for supplies they never ordered. The average refund check amount is $396.

The scheme was reportedly perpetrated by companies operating under the names of Midway Industries and Standard Industries. These companies would reportedly call organizations and claim to have previously done business with the organizations. Then, they would allegedly offer a free sample, ask for employee information, or confirm a shipping address.

These organizations would reportedly be targeted later with invoices for products they hadn’t actually ordered. Many companies ended up paying the invoices they received because they assumed that the employee listed had actually ordered supplies.

“Organizations that paid one invoice became targets for future shipments of unordered merchandise,” the FTC claims.

In 2014, the FTC filed a lawsuit against these companies for allegedly deceiving companies and non-profits into paying for supplies they didn’t actually purchase. In 2016, a settlement was reached to resolve these claims and Midway Industries was forbidden from future schemes. This settlement is now funding FTC refund checks.

If consumers receive an FTC refund check for the Midway Industries settlement, they should cash or deposit the check within 60 days. Further questions regarding the settlement and refund checks can be directed to Epiq Systems at 1-855-424-2580.

Did you receive a check for either of these two FTC refunds? If so, let us know in the comment section below.

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