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FTC refunds $650K to consumers

By Janna Herron · Bankrate.com
Tuesday, October 1, 2013
Posted: 6 am ET

The Federal Trade Commission is sending $650,000 in refunds to consumers who were victims of two separate credit card scams, the government agency said Monday.

The FTC is refunding $518,000 to consumers duped by a phony company that sent mailers offering a preapproved platinum-level credit card that could help build credit and with a guaranteed $7,500 credit line and cash advance benefit. The scam, run by Low Pay Inc., targeted consumers with bad credit.

In another action, the agency is giving back $132,000 to consumers who lost money to a bogus debt-relief company that promised to reduce interest rates on the consumers' credit cards. The sham company operated under several names, including AFL Financial Services, and contacted consumers through robocalls supposedly from card services. The FTC is mailing the 134 refund checks that cover the consumers' full loss, ranging between $289 and $2,600.

The government agency reminded consumers who receive the refund checks to cash them within 60 days of the mailing date.

The FTC investigates anti-competitive business practices and takes enforcement action when necessary. Consumers can file a complaint with the FTC regarding identity theft; credit and debt; unwanted telemarketing, text or spam; mobile devices or telephones; Internet services, online shopping or computers; and jobs and making money, among other areas.

Have you been a victim of a credit card scam?

Follow me on Twitter: @JannaHerron

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