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FTC reveals entire industry behind robocalls

On Behalf of | Jul 18, 2019 | Chapter 13 Bankruptcy |

A recent crackdown by the Federal Trade Commission revealed that robocall operations out of Virginia and other states were tied to large illegal organizations. This most recent action by the FTC targeted groups that tried to sell fake products, multilevel marketing schemes or real products marketed using illegal tactics. The crackdown provides the clearest picture yet of the people and structures behind these illegal activities.

A common way for robocalls to proliferate is through a multilevel marketing scheme. Founders of these schemes push packages on to their members, and they promise that these packages will lead to large amounts of revenue with practically no effort. Members of a franchising scheme reportedly made thousands of dollars per week while one of the founders claimed to earn more than $6 million. It’s unclear how much money was made in one particular scheme. The defendant’s attorneys declined to comment.

Another organization that generated leads for a home solar energy company was reported to place thousands of robocalls to a single phone number. They also placed repeated calls to many other numbers in an attempt to push sales. Some companies sold subscriptions for medical products while another defendant acted alone in an effort to defraud millions of different people.

People who are being harassed by creditors using robocalls may be able to find relief by filing for Chapter 13 bankruptcy. The first step is to consult with an attorney who may help their client determine if this type of legal action is in their best financial interests. If Chapter 13 is pursued, the attorney may work to get their client the best possible payment structure. During the three- or five-year payment period, creditors are prohibited from starting or continuing any collection activities.