The FTC Takes Down Telemarketers Making False Promises of Reducing Credit Card Interest Rates.
The Federal Trade Commission has reached a settlement with four of the defendants in an allegedly phony debt relief services operation that claimed that, for a thousand bucks, it would reduce consumers’ credit card interest rates. (FTC, v. Direct FinancialManagement, Inc., et al. Case No. 10-7194 (N.D. Ill. Feb. 8, 2012). Under the settlement, the defendants will be banned from robocalling consumers and from selling debt relief services. The settlement also includes a judgment of more than $13.1 million, which will be suspended upon payment of $159,000 by the defendants who are part of the settlement. Additional funds are expected from the court-appointed receiver’s sale of the defendants’ assets in the U.S.