FTC settles suit with card companies

As the result of a settlement, a set of companies offering credit cards have surrendered their assets to the Federal Trade Commission (FTC).

The funds have been used by the FTC in order to provide restitution for consumers who claimed they had been defrauded by Integrity Financial Enterprises, National Benefits Exchange, Inc., and the companies’ owner.

According to the suit, the companies offered credit cards that were only good on their website and for products available through their catalogue. Consumers, however, were allegedly led to believe the cards could be used like normal credit cards.

In order to get the cards, consumers had to fork over an upfront payment ranging from $200 to $300. As a result of the settlement, consumers who filed a claim with the FTC were sent checks that averaged $200.

The FTC also got a permanent injunction against a Canadian telemarketing company that claimed it could help consumers with credit card debt. As a result of the injunction, Select Personnel Management Inc. will no longer be allowed to operate its telemarketing operation.