On February 2, a Canadian telemarketer that falsely claimed it could reduce U.S. consumers’ credit card rates, was stopped by a federal court.
The FTC’s complaint alleges that the defendants have sold credit card interest rate reduction services since December 2005, claiming affiliation with consumers’ credit card companies. The defendants promise to effect credit card rates between 4.75 percent and 9 percent, thus saving consumers at least $2,500, and that if consumers do not save that amount their money will be refunded. The complaint also alleges that the defendants engaged in Caller ID spoofing, causing consumers’ caller identification services to display telephone numbers that do not belong to the defendants, but rather to innocent victims whose telephone numbers are misappropriated.
The defendants sent consumers promotional materials with promises to reduce their interest rates, and a “financial profile form” that the consumers had to mail back for $675 plus $20 for shipping and handling. The form asks consumers to list their current balance, credit limit, interest rate, and suggested minimum payment for each of their credit card and other debts, as well as their social security number and other personal information.
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