A Connecticut couple have agreed to settle Federal Trade Commission charges that they deceived customers in credit card mailings.
Philip and Allyson Pestrichello offered unsecured credit cards to people with bad credit for fees ranging from $45 to $105, according to an FTC complaint filed last year. However, the consumers never received the cards, the FTC continued.
A $1.1 million judgment against Phillip Pestrichello has been suspended based on financial disclosures submitted to the FTC. But he is banned from any involvement in credit-related goods or services.
Allyson Pestrichello must pay $80,888 in consumer redress from assets frozen by the court. In addition, the defendants, which also include Credit Services of America, Inc. and First Credit Alliance, are prohibited from misrepresenting their offers or refund policies, the FTC said.
According to the FTC, brochures mailed by a defendant company, Credit Services of America promised consumers guaranteed credit card approval or a refund. What the consumers got was photocopies of Visa or MasterCard applications from banks or credit card companies, the FTC continued.
When Credit Services of America ceased operations, Phillip Pestrichello started First Credit Alliance, “a nearly identical business,” the FTC charged.
