Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC Goes After Phony Debt Relief Services, (Jan 28, 2013)
By Jody Coultas, J.D.
The FTC has filed a complaint against an operation known as Innovative Wealth Builders, Inc. (IWB) in the federal district court in Tampa, alleging violations of the FTC Act and the Commission’s Telemarketing Sales Rule (FTC v. Innovative Wealth Builders, Inc., FTC File No. 122 3127, Case No. 8:13-cv-00123-VMC-EAJ, announced January 28, 2013).
IWB allegedly operated a credit card interest rate reduction scam in which IWB cold-called consumers and offered them the deceptive program. Consumers were promised reduced interest rates in return for service charges between $500 and $2000, which would be returned if IWB failed to meet its promises. IWB did not actually obtain reduction in consumers’ interest rates and refused to return consumers’ money. Consumers were merely offered a comparison between the amount consumers would pay if they only paid the minimum monthly amount and the total amount consumers would pay if they paid more than their monthly minimum payment.
The FTC alleged that IWB violated the FTC Act and Telemarketing Sales Rule by misrepresenting its services, return policy, and by billing consumers’ credit cards without authorization.
The Tampa court granted the FTC a temporary restraining order against the company that shut down IWB’s business pending the resolution of the case.
News: ConsumerProtection FederalTradeCommissionNews