Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Auto loan modification scam banned under FTC settlement, (Jul 10, 2015)
Organizations Mentioned:Regency Financial Services, LLC
By Linda O’Brien, J.D., LL.M.
The operators of a vehicle loan modification scheme have agreed to a permanent ban on telemarketing and the advertising, marketing, or sale of any debt relief products or services to settle FTC charges that they falsely promised consumers auto loan modifications, the FTC announced today (FTC v. Regency Financial Services, LLC, File No. 142-3059).
In January 2015, the FTC filed a complaint in the federal district court for the Southern District of Florida, against Regency Financial Services, LLC and its chief executive officer Ivan Levy. In its complaint, the FTC alleged that, since 2009, Regency and Levy violated the FTC Act and Telemarketing Sales Rule by promising consumers services to stop the repossession of their vehicles, and to obtain lower interest rates and monthly auto loan payments for an upfront fee of $499. The FTC’s complaint also alleged the company failed to honor its “money-back guarantee.”
In addition to the bans on telemarketing and debt relief products and services in the stipulated order, the defendants also agreed to a judgment of $330,000 to redress the victims of their scheme. The settlement order also prohibits defendants from misrepresenting the terms or rates that are available for any loan or extension of credit, and the ability to improve a consumers’ credit rating.
Companies: Regency Financial Services, LLC
News: ConsumerProtection FederalTradeCommissionNews