Refunds Mailed from Credit Card Interest-Rate Scheme: FTC

The Federal Trade Commission said that 4,468 checks are being mailed this week to consumers defrauded by a telemarketing scheme that pitched worthless credit card rate reduction programs.
According to the FTC, the telemarketers claimed that they could lower the interest rates on consumers’ credit cards for an up-front fee that typically ranged from $990 to $1,495.
Each consumer will receive a check for between $31 and $1,300, based on how much money he or she lost in the scam, the FTC said.
The refunds are part of the July 2010 judgment in one of several cases the FTC brought against operators of illegal robocalls to consumers, using names including “Heather from card services” and “client services.”
The scheme’s operators falsely stated that consumers who did not save the “guaranteed” amount from interest rate reductions – typically $4,000 or more – could get a full refund of the up-front fee.
“However, after consumers paid the fee, the defendants did little to negotiate better terms on their behalf and refused refunds to consumers who were dissatisfied with their services,” the FTC said.
Consumers with questions should call the redress hotline at 1-866-224-5404.

Leave a Reply

Your email address will not be published. Required fields are marked *