| November 16, 2010

Courts shut down illegal credit card debt relief operation

At the request of the Federal Trade Commission, a district court in Chicago, Illinois, has closed an international robocall scheme that allegedly scammed those looking alleviate credit card debt.

The company promised it could reduce debt, but instead conned consumers out of nearly $1,000 each, providing no debt reduction for customers. FTC says the company defrauded nearly 13,000 individuals out of almost $13 million.

From 2007 until the present, the company used 10 different names to con New York and Toronto residents into the phony settlements, Consumer Affairs reports. The complaint charges that the operation violated the FTC’s new Telemarketing Sales Rule, calling those on do-not-call lists and made illegal robocalls.

On November 8th, Judge Joan Lefkow filed a restraining order and an asset freeze, which halted the operations until a pending trial, the news source says.

The FTC and the Ministry of the Attorney General of Ontario are seeking to put a halt to the company’s allegedly illicit activity and return gains to consumers.

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