FTC Penalizes Fraudulent Interest Rate Reduction Company
National Credit Card Monitor LCC, responsible for an alleged nationwide credit card interest rate reduction scheme, has been barred from the telemarketing industry and must turn over all remaining (currently frozen) funds according to the Federal Trade Commission.
How the Fraudulent Credit Card Scheme Worked
- Telemarketers would cold-call consumers and tell them the company could reduce their interest rates.
- Telemarketers would state National Credit Card Monitor could obtain the customer new credit cards with lower interest rates that the customer could then transfer their existing debt to.
- Offers included credit cards with interest rates down to zero percent.
- The customer would be charged an upfront cost of up to $599.
- Telemarketers would then assure the customer that the purchase had a money back guarantee and would be issued a refund should the cards not arrive.
- According releases by the FCC, most customers would not receive the guaranteed product and would find it near impossible to get their promised refund.
Penalties Levied Against National Credit Card Monitor
- The company is now barred from the telemarketing industry.
- The company’s assets have been frozen.
- The credit card company must turn over all remaining funds.
- Current judgment for $2,329,409 levied by the FTC for misrepresentation and making unsubstantiated claims. The judgment may be suspended upon the turning over of all frozen funds.
Texas Cities, Including San Antonio, Vulnerable to Interest Rate Scheme
Texan consumers may have been especially vulnerable as Texas currently holds three spots for cities with the highest average credit card debt.
Currently, San Antonio is ranked as having the highest credit card debt in the nation with an average credit card debt per person of approximately $5,177, nearly 21% higher than the national average.
Contact an Experienced Consumer Protection Attorney
Thomas J. Henry are leaders in the area of consumer protection litigation. Our attorneys have the knowledge and resources to represent clients efficiently and aggressively.
If you or a loved one has suffered as a result of unfair or unsafe business practices, contact Thomas J. Henry immediately. We are available 24/7, nights and weekends.