At the request of the Federal Trade Commission, a federal judge has put a stop to three companies’ allegedly deceptive telemarketing calls that promised to reduce consumers’ credit card interest rates, according to the FTC.
The court also froze their assets and appointed a receiver to take control of the business, according to the FTC.
Named as defendants were: AMS Financial, Rapid Reduction Systems LLC, and their principals Ryan Bishop and Michael Rohlf, all of Spokane, WA, and PDM International, Inc., doing business as Priority Direct Marketing International, Inc. (PDMI) of Bedford, TX, and its principal William Fithian, of Colleyville, TX, the FTC said.
According to the Commission, over the past two years, the defendants made or authorized calls to consumers nationwide, claiming that they could negotiate with credit card issuers to substantially lower the interest rates on the consumers’ credit cards.
They also allegedly delivered prerecorded “robocalls” that consisted of urgent-sounding messages from “Card Services” or “Financial Services,” stating that consumers needed to “press one” to speak to a representative about their credit card interest rates. Many consumers believed the calls were from their credit card issuers, according to the FTC.
Consumers who signed up for the defendants’ services were charged from $499 to $1,590 upfront and promised their money back if the callers failed to deliver at least $2,500 in interest rate savings, the FTC alleged.
Instead of arranging reduced interest rates, the defendants sent consumers instructions to pay down their credit card debts early, thus saving money on interest. Consumers who complained and demanded refunds allegedly were denied outright, got the runaround, or had a $199 “nonrefundable fee” deducted from their refund, charged the FTC
U.S. District Judge Lonny Suko has issued an order appointing two receivers to take over the businesses, and freezing the assets of Advanced Management Services NW LLC.
The case is on file at U.S. District Court for the Eastern District of Washington.
