Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Telemarketers’ deceptive credit card services illegal robocalls halted, (Jun 29, 2015)

By Linda O’Brien, J.D., LL.M.

An Orlando-based operation has been stopped from bombarding consumers with massive robocall campaigns, designed to trick them into paying up-front for worthless credit card interest rate reduction programs, the FTC announced today. A federal district court has issued a temporary restraining order against the telemarketers, halting their illegal calls, many of which targeted seniors and claimed to be from “credit card services” or “card member services” (FTC v. All US Marketing LLC, File No. 142-3256).

On June 22, the FTC and Florida Attorney General filed a joint complaint in the U.S. District Court for the Middle District of Florida, Orlando Division, alleging that the defendants have been illegally calling thousands of consumers nationwide since 2011 – including many seniors – claiming that their program will save them at least $2,500 in a short period of time and will enable them to pay off their debts more quickly. After convincing consumers to provide their credit card information, the defendants then charged between $300 and $4,999 up-front for their worthless service. In some cases, they illegally charged consumers without their consent.

The complaint alleges that the defendants failed to provide consumers with the promised interest rate reductions or savings. Instead, some consumers receive a package of financial education information that they did not request or agree to pay for. In other cases, the defendants use consumers’ personal information to apply for new credit cards, presumably with low introductory interest rates, without consumers’ knowledge or consent.

The complaint also charges the defendants with making many calls to consumers whose phone numbers are on the FTC’s National Do Not Call Registry and with a number of violations of the FTC’s Telemarketing Sales Rule and Florida’s Telemarketing and Consumer Fraud and Abuse Act.

The defendants include: (1) All US Marketing LLC; (2) Global Marketing Enterprises Inc.; (3) Global One Financial Services LLC; (4) Your #1 Savings LLC; (5) Ovadaa LLC; (6) Royal Holdings Of America LLC; (7) Gary Rodriguez; (8) Marbel Rodriguez; (9) Carmen Williams; (10) Jonathan Paulino; (11) Fairiborz Fard; (12) Shirin Imani; and (13) Alex Serna.

The same day that the complaint was filed, the court entered a temporary restraining order, freezing the defendants’ assets, and appointing a temporary receiver over the business.

“Working with the Florida Attorney General, we’re shutting down a scam that blasted robocalls to older people and offered bogus solutions to relieve credit card debt,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “It’s illegal to sell products or services with out-of the-blue robocalls, and if you get one you can expect that the sales pitch is a lie, too.”

Companies: All US Marketing LLC; Global Marketing Enterprises Inc.; Global One Financial Services LLC; Your #1 Savings LLC; Ovadaa LLC; Royal Holdings Of America LLC

News: ConsumerProtection FederalTradeCommissionNews