Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC settles robocall rate reduction services case, (Jul 15, 2013)

By Jody Coultas, J.D.

Five companies charged with making millions of illegal pre-recorded robocalls claiming to be from “Rachel” and “Cardholder Services” and pitching credit card interest rate reduction services have agreed to settle the FTC action against them, the agency announced Friday (FTC v. A+ Financial Center, LLC, FTC File No. 122 3197, Case No. 2:12-CV-14373-DLG, announced July 12, 2013).

In complaints filed in October 2012, the FTC charged the companies and their principles with misleading consumers about their services, calling phone numbers on the Do Not Call Registry, illegally collecting up-front fees, and making illegal robocalls. Consumers were allegedly told that the companies would lower their credit card interest rates for an up-front fee of between $495 and $1,595. The companies did not actually help consumers lower their rates.

As part of the settlement, the companies are banned from making robocalls, selling unsecured debt relief services, misrepresenting the attributes of any financial product or service, and engaging in abusive telemarketing practices. The order also prohibits the companies from misrepresenting the attributes of any goods or services, and from misrepresenting their relationship with any bank, credit card issuer, credit reporting agency, other lender, or government entity.

In addition, a judgment of $9,238,155 was suspended until after defendants transfer all of their assets (except $25,000), including a 2007 Mercedes Benz CL, a 1999 boat valued at approximately $17,000, and a 2002 boat worth about $45,000.

News: ConsumerProtection FederalTradeCommissionNews