FTC Sends Refund Checks to Those Duped by Phony '$10K Credit Lines'

FTC Sends Refund Checks to Those Duped by Phony '$10K Credit Lines'The Federal Trade Commission is mailing checks totaling more than $3.7 million to 26,176 consumers who were told they would be offered $10,000 credit lines.
Instead,the FTC alleges that these consumers were signed up for memberships to a website selling goods.
The consumer accounts were debited without prior consent by EDebitPay LLC, Dale Paul Cleveland and William Wilson, the FTC says.
“The FTC strives to return as much money as possible to defrauded consumers;” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “It is particularly gratifying when we can make consumers whole again.”
In 2011, a federal district court ordered Cleveland and Wilson to pay more than $3.7 million after finding that the defendants were in contempt of court for violating a 2008 court order against selling the bogus “$10,000 credit lines”.
They also sold “no cost” prepaid debit card with hidden fees to consumers who were unemployed or had poor credit, the agency said.
After obtaining this judgment, the FTC collected it in full.
Many affected consumers will receive more than $100; the amounts vary based upon the victim’s loss.
Those who receive the checks from the FTC’s refund administrator should cash them within 60 days of the mailing date.
The FTC never requires consumers to pay money or to provide information before refund checks can be cashed.
Those with questions should call the refund administrator, Gilardi & Co., at 1-877-290-6229, or visit www.FTC.gov/redress for more information.

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