FTC Complaint Hits Debt Consolidation Service
The Federal Trade Commission has filed a complaint against Florida based Express Consolidation Inc. for allegedly violating the FTC Act the Telemarketing and Consumer Fraud and Abuse Prevention Act.
The FTC accuses the firm of using a sham nonprofit company to evade telemarketing regulations that apply to commercial operations, but exempt nonprofit entities. According to the complaint the firm violated the FTC’s Do-Not-Call Registry and played recorded messages, rather than connecting consumers to live sales representatives.
It alleges that telemarketers associated with the operation falsely represented fees charged to consumers for debt consolidation services.
The complaint names as defendants Randall L. Leshin an officer with Express Consolidation and Maureen A. Gaviola an officer Consumer Credit Consolidation Inc. CCC solicited and procured business for Express Consolidation, according to the FTC.
The FTC is seeking consumer redress, a freeze of the company’s assets and an end to its alleged illegal activities. The complaint was filed at the U.S. District Court for the Southern District of Florida.
