WASHINGTON– The Federal Trade Commission reported it is sending refund checks totaling nearly $2.3 million to people who lost money to credit card debt relief schemes.
In a complaint announced in July 2019, the FTC and the state of Ohio alleged Educare Centre Services, Inc. and Tripletel, Inc. made false and unfounded promises that they would significantly reduce the interest rates on consumers’ credit cards, and also promised a 100% money-back guarantee if the promised rate reduction failed to materialize or if consumers were otherwise dissatisfied.
In December 2019, the FTC and Ohio amended their complaint and added Voice over Internet Protocol (VoIP) service provider Globex Telecom, Inc. as a defendant. The amended complaint alleged that Globex knowingly provided the Educare scheme with the means to make calls to U.S. consumers, including illegal robocalls, to market Educare’s phony credit card interest rate reduction services.
In addition, the FTC and Ohio filed a separate complaint in 2019 that alleged that Madera Merchant Services and B&P Enterprises generated and processed remotely created payment orders or checks that allowed dishonest merchants to withdraw money from their victims’ bank accounts. Madera and B&P Enterprises supported many unscrupulous merchants, including Educare’s deceptive telemarketing scheme, according to the FTC.
Checks of Nearly $300
As a result of the settlements reached with these defendants, the FTC is mailing 7,786 refund checks averaging about $293 each, the FTCF said.
The FTC reminded that it offers interactive dashboards for refund data(link is external) that provide a state-by-state breakdown of FTC refunds.
In 2020, FTC said its actions led to more than $483 million in refunds to consumers across the country, but recently the United States Supreme Court ruled the FTC lacks authority under Section 13(b) to seek monetary relief in federal court going forward.