The Online Lender’s Alliance (OLA) applauded the actions of the Federal Trade commission (FTC), which closed a fraudulent debt collector and issued a temporary freeze of their assets. 
The Tracy, California based Kirit Patel and two companies that he controls were charged by a U.S. district court with violating the FTC act and the Fair Debt collection Practices Act.

The FTC, in a press release on their website, says that the firms would target and call consumers who may or may not have taken out payday loans and harass them.  The level of the alleged harassment varied from pretending to be law enforcement officers to one complaint from a woman saying that her children were threatened.  Many were threatened with arrest if they did not immediately provide checking account or credit card information.

Lisa McGreevy, President and CEO of OLA said in a press release, "We will continue to work with the FTC and other law enforcement agencies to protect our customers from these fraudulent predators who threaten consumers into paying debts they don't owe."

OLA has taken steps to assist consumers impacted by fraudulent debt collectors by establishing a system for consumers who think they have been victims of fraud which includes a website and consumer hotline: 1-866-299-7585.