Feds: Georgia Debt Collectors Bullied, Lied

Lifestyle and Budget Associated Press

Federal authorities in New York say they brought criminal charges against seven people in a debt collection scam run out of Georgia.

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Prosecutors planned a news conference Tuesday afternoon to describe how the Atlanta-based company bullied people in all 50 states from 2009 through April.

They say the company threatened arrests to collect more than $4 million from over 6,000 victims.

According to a criminal complaint, debt collection business employees falsely claimed they worked for, or were in contact with, the Justice Department, the U.S. Marshals Service, the FBI and sheriffs' departments.

It said victims were falsely told they would be arrested if they did not call back or pay specified amounts immediately.

Investigators say some of the debts were real, but some weren't.