April 12, 2010
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An End To Shady Telemarketers, Pt.2
Turn over the cash!The win is a big one for the Federal Trade Commission who has been after Nicholson and his companies for several years. Nicholson's companies have been scamming credit card customers since 2006 when they began the deceptive telemarketing scheme which preyed on consumers with poor or no credit offering them a general credit card. Customer's were required to pay a $250 up-front fee for a credit card that would give them cash advances, a line of credit, and provide them with a positive credit report that would be sent to the three major credit reporting bureaus. However, the customer's soon discovered that the credit card could only be used on one of Nicholson's online company sites. Furthermore, there was no access to any cash advance nor were their credit histories reported to the credit bureaus.
After a lengthy investigation, the FTC filed a complaint against Nicholson and his companies in 2009 charging them with deceptive telemarketing since 2006. Shortly after that filing, the FTC amended their complaint to include four additional companies plus new charges relating to the fictitious advance fee credit card interest rate reduction and debt negotiation programs operating under the name of Credit First Financial Solutions. Court documents indicate that the telemarketers misrepresented the program saying that in exchange for an up-front fee they would negotiate lower credit card interest rates and negotiate debt reduction. Furthermore, the telemarketers promised a reduction in debt from $1,500 to $20,000 within the first month or the customer would receive a full refund.
In addition to banning Nicholson and his companies from participating in any telemarketing, the settlement also bans them from selling any advance-fee loans or credit cards. Furthermore, Nicholson is banned from assisting anyone in telemarketing or marketing such loans. Nicholson and his companies are prohibited from participating in or marketing any business related to credit goods or services. Lastly, all the defendants were handed a $17.2 million judgment which was suspended because of an inability to pay. Nicholson was ordered to hand over a 31 foot boat, a Nissan Pathfinder, jewelry, and art. Brett Fisher, the CEO of Group One was also banned from participating in the sales and marketing of credit and will hand over $21,000 in cash. The remaining defendants will relinquish over $200,000 in cash and assets.