December 11, 2009
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News: FTC Sues Deceptive Robocalls
The Federal Trade Commission (FTC) wants to crack down on advisory service companies advertising false interest rate terms. The Commission filed a lawsuit against three organizations that promised a reduction on credit card interest rates and failed to deliver. According to the FTC, Economic Relief Technologies, Dynamic Financial Group, and JPM Accelerated Services all supported robocalls to Americans with using such aliases as "card services," "credit card services," or "account services" promising it could negotiate lower interest rates for the consumer's credit cards. Court documents say that the three companies allegedly participated in "illegal pre-recorded robocalls" misleading consumers into believing the company was affiliated with the consumer's lender.
The telemarketers claimed that they could save the consumer thousands of dollars by negotiating lower credit card interest rates which would assist them in paying down debt faster. Consumers were charged an upfront fee between $495 and $1,495. In actuality, the companies collected the fees and never negotiated anything with the credit card companies. Furthermore, when the companies received customer complaints when they did not follow through with their promises, the customer was not given any refund. The FTC has taken swift action in filing the lawsuit and wants the public to know that they intend to prosecute to the fullest extent.
This is not the first incidence where the FTC has received complaints about deceptive robocalls. Americans have been outraged over the past few years by the automotive repair insurance scams and credit card relief scams that have imposed extra burdens on them. The FTC Chairman Jon Leibowitz released a statement saying today's lawsuits “are not the first, nor will they be the last.” Consumers can expect to learn about further action that the agency is taking to protect them against the "intrusive, illegal, and deceptive telemarketing robocalls." Consumers should visit the FTC website at http://ftc.gov/bcp/edu/pubs/consumer/alerts/alt162.shtm to learn more about two new alerts regarding recorded telemarketing calls.