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Debit Card/Payday Loan Scam Settles with FTC

The FTC has reached a settlement with VirtualWorks, LLC, a/k/a Virtual
Works, EverPrivate Card and Secret Cash Card, and f/k/a Private Date
Finder, over an alleged debit card scam. The FTC alleged that thousands
of consumers who applied for a payday loan online
were charged up to $54.95 for a prepaid debit card with a zero balance.
According to the FTC, the debit card company sold Visa- and
MasterCard-brand debit cards through a payday loan marketer whose Web
site homepages contained a loan application form and a button for
submitting it. On numerous Web sites, consumers who clicked the submit
button were taken to another page offering four products unrelated to
the loan, each with tiny “Yes” and “No” buttons. “No” was pre-clicked
for three of the products; “Yes” was pre-clicked for a debit card, with
fine-print disclosures asserting the consumers’ consent for their bank
account to be debited. Consumers who failed to change the debit card
offer to “No” and simply clicked the prominent button labeled “Finish
matching me with a payday loan provider!” incurred the fee for the debit
card. On other Web sites, the homepage touted the debit card
as a “bonus” and disclosed the enrollment fee only in the fine print
below the submit button.