At the Federal Trade Commission’s request, federal courts in New York and Georgia have temporarily halted three debt collection operations that allegedly violated federal law by threatening and deceiving consumers via text messages, emails, and phone calls. The FTC seeks to permanently end the unlawful practices.
American Bill Pay and American Benefits Foundation are getting slammed again by the FTC. Two new defendants have been named in a case against a phony debt relief and credit repair scheme.
While largely ceremonial, President Obama today signed an executive order at the Consumer Financial Protection Bureau mandating the use of smart payment cards in the U.S. for government payments. The payment transistion in the U.S. from mag stripe/signature card payments to Chip/PIN (EMV) is already underway and will be in full steam in 2015.
Pinnacle Payment Services, operating out of Atlanta and Cleveland, has been halted for abusive debt collection practices of an operation that used fictitious names and threatened consumers into paying debts they may not have owed. The Federal Trade Commission (FTC) says the Company is subject to a Nearly $10 million judgement.
At the request of the Federal Trade Commission (FTC), a federal court has shut down Butterfly Labs, a Missouri-based company that allegedly deceptively marketed specialized computers designed to produce Bitcoins, a payment system sometimes referred to as “virtual currency.”
A Missouri online payday loan company has been shuttered by The Federal Trade Commission (FTC). The firm allegedly bilked consumers out of tens of millions of dollars by trapping them into loans they never authorized and then using the supposed “loans” as a pretext to take money from their bank accounts.
The I Works scam continues to haunt CardFlex. In December 2010, the FTC charged I Works with scamming consumers out of more than $275 million via deceptive “trial” memberships for bogus government-grant and money-making schemes.
The FTC says the I Works credit card processing deception took in more than $26 million in illegal credit and debit card payments through the Visa and MasterCard payment networks. Three of the defendants have agreed to settle the FTC’s charges.
The former president of Your Money Acces payment processing has agreed to settle a civil case brought by the FTC and the consumer affairs agencies of Illinois, Iowa, Nevada, North Carolina, North Dakota, Ohio, and Vermont on allegations the company’s client merchants made unauthorized debits from consumers’ bank accounts and violated the FTC’s Telemarketing Sales Rules. Under the settlement agreement, the former presidentvoluntarily agreed not to participate in certain dimensions of payment processing and to not knowingly aid anyone who is violating the Telemarketing Sales Rule. He also made a $15,000 payment to the FTC.
In support of National Consumer Protection week, Capital One is making some ID protection
recommendations to consumers of all ages. To reduce fraud, Capital One is recommending cardholders
Keep their web browsers and operating system up to date; watch out for emails from scammers
offering to give away
free money or asking for help moving a large sum of money; and beware of bogus online donation
scams â Following the Haiti earthquake, the FBI is advising people to be careful when evaluating
programs related to the earthquake. Instead of following a link in an email,
go directly to the charityâs website and never release personal
information to someone soliciting money.
When shopping onlie, look for an unbroken key or padlock at
the bottom of your web browser when providing payment information. When
youâre asked to provide payment information, the beginning of the Web
siteâs URL address should change from http to shttp or https, indicating
that the purchase is encrypted or secured; check out the seller; use caution with social media;
consider how youâll pay. Credit cards generally are a safe option
because they allow buyers to seek a credit from the issuer if the
product isnât delivered or isnât what was ordered and keep your password private.
The Association of Settlement Companies has issued a warning to consumers about rate reduction scams.
The Federal Trade Commission recently filed a complaint and received an injunction against one or more of these companies, which have used deceptive tactics in making representations and providing warranties to consumers guaranteeing to have interest rates on credit cards lowered, thereby substantially reducing the balance on the consumerâs credit card account. TASC wants consumers to know that the services being offered by these companies are not debt settlement programs and that none of its members offer this type of service. Furthermore, all TASC companies are specifically prohibited from providing this service, along with the other services such as mortgage modification programs and credit repair services, as a condition of their membership in TASC.
The FTC has filed a complaint in federal court against
Low Pay, Inc.d/b/a as LPC Inc., lowpaycard.com, and mylpcard.com; LP
Capital Holdings, Inc.; Century Luxury, Inc.; the
Mardan Afrasiabi Living Trust; Mardan M. Afrasiabi; and Ramin Rahimi.
alleging that their catalog credit card operation deceptively marketed
The defendants are charged with violating the FTC Act and the FTCâs
Telemarketing Sales Rule (TSR) by falsely representing that the card
could be used to
fully finance purchases; that it would provide access to a no-fee, low
guaranteed cash advance benefit; and that consumers could improve their
credit ratings by using the card. They also failed to disclose that they
debit from consumersâ bank accounts the advance fees, a non-refundable
and 30% of a productâs price plus shipping costs. In addition, the
defendants falsely claimed that they would refund the $120 activation
consumers who returned the card and catalog in timely fashion. The
allegedly violated the TSR by charging an advance fee for a guaranteed