The Federal Trade Commission has settled charges with a Colorado-based telemarketing firm and its principal it accused of deceiving consumers in financial distress out of more than $200 each with offers for credit cards and promises to help them rebuild their credit.
This settlement permanently bars Sainz Enterprises, LLC, and owner Joe P. Sainz III from marketing certain credit products, making any claims that violate the FTC’s Telemarketing Sales Rule or knowingly assisting others who are violating the TSR.
The order also requires the defendants to review all sample scripts and other marketing materials from any telemarketer or seller in connection with their business.
From 2002 through early 2003, the defendants telemarketed advance-fee credit cards and credit repair materials, which they billed as “Credit Securities Resources,” according to the FTC.
The defendants allegedly targeted consumers who needed financial assistance or were trying to repair their credit, including consumers who had recently filed for bankruptcy, and offered them a “Credit Repair Kit,” according to the FTC.
The defendants promised that consumers would receive an “unsecured” Visa or MasterCard for a fee of $209, which they debited from consumers’ bank accounts. Instead, consumers allegedly received a stored-value card that could only be used if they loaded money onto it, according to the FTC.
The FTC’s complaint alleged that the defendants violated the FTC Act by misrepresenting that consumers could get an unsecured major credit card for an advance fee. The FTC also charged that the defendants violated the TSR by deceiving consumers through telemarketing and collecting money from consumers after promising them a credit card.
The order permanently bars the defendants from knowingly assisting fraudulent telemarketers. To ensure that the defendants comply with this provision, the order requires the defendants to review all scripts and direct mail samples they receive from third
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