Phony Debt Collectors Threatened Victims With Jail Time, Authorities Say

Major crackdown underway on alleged scam that threatens debtors with jail time if they don't pay bills.
2:02 | 11/19/14

Coming up in the next {{countdown}} {{countdownlbl}}

Coming up next:

{{nextVideo.title}}

{{nextVideo.description}}

Skip to this video now

Now Playing:

{{currentVideo.title}}

Comments
Related Extras
Related Videos
Video Transcript
Transcript for Phony Debt Collectors Threatened Victims With Jail Time, Authorities Say
a major crackdown on debt collection. It's a scam where victims are threatened with jail time unless they paid bills for things they never bought to the tune of millions of dollars. Rebecca Jarvis has the story. ? You're going around getting loans, not paying them back. You're on the way to jail. Reporter: It's a vicious call, and the feds say it's illegal. I'm not working. With that being said, I will have no choice but to forward it to Los Angeles county. However, Los Angeles county will issue a warrant for your arrest. Reporter: This morning the FBI and U.S. Attorney saying calls like this are an example of a scam sweeping the nation. We arrested seven people and shut down the business. You have to bring the hammer of the criminal law to bail. Reporter: Announcing charges against georgia-based William, Scott and associate, alleged thieves who they say conned 6,000 people out of $4 million. Tricking victims into believing they committed a crime and bullying them into paying up bogus debts. You think an eight months pregnant woman wants to go to jail. I don't care if you're 9 months pregnant. I have a job to do. Reporter: But there are more scammers on the loose. We shut down one today. And there are a lot of companies that do this, victimize not just 6,000 people, but hundreds of thousands of people around the country. Reporter: How do you spot a fake? A legitimate debt collector will not lie or deceive, try to abuse the consumer into collecting the debt or call at inappropriate times or use other high-pressure tactics. Reporter: Know the warning signs, harassing calls, threats of jail time or arrest. These are red flags. For "Good morning America," Rebecca Jarvis, ABC news, new York.

This transcript has been automatically generated and may not be 100% accurate.

{"duration":"2:02","description":"Major crackdown underway on alleged scam that threatens debtors with jail time if they don't pay bills.","mediaType":"default","section":"ABCNews/GMA","id":"27019454","title":"Phony Debt Collectors Threatened Victims With Jail Time, Authorities Say","url":"/GMA/video/phony-debt-collectors-threatened-victims-jail-time-authorities-27019454"}