Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC Issues $7.4 Million in Refunds Following Action Against Credit Card Operation, (Jan 31, 2013)
Organizations Mentioned:Apogee One Enterprises LLC | CR Ventures LLC | Express Platinum Card | Marquee Marketing LLC | Maxim Management Group LLC | Oakmont Management Services | Platinum Trust Card
The FTC has sent 70,511 refund checks totaling over $7.4 million to consumers harmed by a telemarketing operation that offered fake platinum credit cards (Federal Trade Commission v. Apogee One Enterprises, LLC, FTC File No. 1123212, Case No. 12-cv-588).
The refunds followed a settlement reached between the FTC and the principals of the operation. The FTC had charged the entities and individuals involved in the operation with violations of the Federal Trade Commission Act and the Telemarketing Fraud and Abuse Act.
The operation had allegedly offered consumers a purported credit card with a credit limit of up to $9,500, in exchange for an advance fee of up to $99 and a monthly fee of $19. Although the operation claimed that the credit card would function as an ordinary general-purpose credit card, and would help rebuild consumers' credit ratings through reports to the major credit bureaus, the FTC claimed that the defendants did not actually report to credit bureaus, and that the cards only permitted consumers to access an online store the operation owned. The store allegedly sold a variety of overpriced products, mostly in bulk quantities.
The operation would allegedly obtain consumers’ personal and bank account information from payday loan applications filled out by the consumers, and would frequently use the information to withdraw fees from consumers’ accounts even when the consumers rejected the credit card offers.
In addition to the refunds, which the FTC claims represent 97% of consumers’ loss from the operation, the settlement also bars the defendants, which included Blake Rubin, also doing business as Platinum Trust Card, Express Platinum Card, CR Ventures LLC, and Maxim Management Group LLC; Chase Rubin, also doing business under those names and as Oakmont Management Services; Apogee One Enterprises LLC, also doing business as Apogee Enterprises LLC, Platinum Trust Card and Express Platinum Card; Marquee Marketing LLC, also doing business as Express Platinum Card; Jules Shore; and Justin Diaczuk, from offering credit card products and services and from engaging in telemarketing.
Companies: Platinum Trust Card; Express Platinum Card; CR Ventures LLC; Maxim Management Group LLC; Oakmont Management Services; Apogee One Enterprises LLC; Marquee Marketing LLC
News: ConsumerProtection FederalTradeCommissionNews