Texas-based ClickForMail.com Inc. (doing business as AllPreApproved.com) and Harvey B. Vaughn III have agreed to pay $815,000 in consumer redress to settle charges regarding an alleged online credit card scam.
The FTC alleged that the defendants sent spam telling consumers they were approved and guaranteed to receive major, unsecured credit cards with credit limits up to $5,000 for an advance fee of $49.95. According to the FTC, however, consumers who paid the fee did not receive the promised card, but rather links where they could apply for credit cards.
In addition to paying redress, the settlement prohibits the defendants from making any false claims to consumers in the future.
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