Consumers who lost money via inbound telemarketing fraud will see a portion of that money returned under the terms of a stipulated court order.
The case, brought through the Federal Trade Commission, targeted defendants who allegedly placed ads in magazines or mailed postcards to consumers to pitch advance-fee credit cards to prospective buyers deceptively.
According to the FTC, consumers who called the company in response to the ads had to pay up-front for the promised products, often receiving little or nothing in return. Through the order settling the case, the court has prohibited the defendants from engaging in similar deception in the future and secured $1.4 million that the FTC will use for consumer redress.
Consumers paid fees averaging between $79 and $229.
“Consumers should take marketers’ easy-money claims with a big grain of salt, whether the pitch is made through a cold call, a telephone pole promotion or in a classified ad,” said Howard Beales, Director the FTC’s Bureau of Consumer Protection, in a statement. “The FTC continues to pursue cases against illegal advance-fee credit schemes and other scams. We’re pleased that these particular defendants won’t be making their deceptive claims any longer.”
The FTC filed its complaint against Thomas Gregg Holloway, First Freedom Financial Corp., and Southern Telmark Corp.
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