FTC Issues Consumer Refunds for Credit Card Interest Rate Reduction Services

The FTC recently announced that it would begin mailing 1,244 checks to consumers who, after they had been allegedly contacted through illegal robocalls, bought credit card interest rate reduction services that were deceptively marketed.  Most of the refunds will total $1,100 or more.

The FTC previously filed suit in the U.S. District Court for the Middle District of Florida against several defendants who operated a credit card scheme.  The defendants allegedly used illegal robocalls to promise to lower credit card interest rates for an upfront fee.  After receiving the upfront fees, the defendants did not provide interest rate reductions or savings. 

The district court found several of the defendants liable on summary judgment.  WBK previously discussed the ruling on appeal against one of the defendants, a credit card payment processor, here.  Subsequently, a settlement was reached for the defendants to pay the FTC $1.7 million.