WASHINGTON–The Federal Trade Commission has cracked down on at least three companies using a very effective—and fraudulent—strategy for getting consumers’ attention: telling them their credit card payment has been declined.
The companies targeted by the FTC have been sending text messages such as, “YOUR PAYMENT DECLINED WITH CARD ****-****-****-5463 . . . CALL 866.256.2117 IMMEDIATELY.” The FTC said it is seeking to ban such text messages as part of its “Messaging for Money” enforcement sweep.
The text message above, and others that were similar, were sent by New York-based Unified Global Group, according to the FTC. Some of the consumers who received the text message had not set up any type of card payment with the company, which also failed to identify itself as a debt collector in the message, a violation of the Fair Debt Collections Practices Act, according to the FTC.
The FTC has also obtained restraining orders against New York-based Premier Debt Acquisitions and Georgia-based Primary Group, accusing each of sending texts and making phone calls in violation of federal law.
The FTC has alleged that Premier also went as far as to impersonate state or law enforcement officials, falsely threaten consumers with a lawsuit or arrest, and falsely threaten to charge some consumers with criminal fraud, garnish their wages, or seize their property. The FTC says the firm claimed in text messages that it would sue the consumers and threatened to seize their possessions unless they paid.
The FTC also accused Primary Group of sending illegal texts such as, “I’m a process server w/ Primary Solutions, appointed to serve you papers for case [eight digit number]. Would you like delivery at [consumer’s home address]?”