New lawsuit aims to refund consumers targeted in debt collection scheme

New York's top prosecutor is taking legal action to shut down a phantom debt collection scheme.

Attorney General Barbara Underwood announced a joint lawsuit Wednesday with the Federal Trade Commission to stop the alleged collection and distribution of debts that consumers did not owe.

The complaint alleges that Hylan Asset Management, LLC and its owner Andrew Shaevel, and Worldwide Processing Group, LLC and its owner Frank Ungaro Jr. violated New York State's fair debt collection statute as well as the FTC Act. It also alleges certain defendants violated the Fair Debt Collection Practices Act. 

“It’s unconscionable to collect on fake debts that consumers don’t actually owe in order to make a quick buck,” said Attorney General Underwood. “We’ll continue to work with our partners in government to hold these phantom debt collectors accountable.”

The lawsuit aims to put an end to the alleged illegal conduct and to obtain money to provide refunds to consumers.