Following a request by the Federal Trade Commission, a U.S. district court judge imposed a telemarketing ban on a Canadian operation that targeted U.S. consumers with false claims that it could reduce their credit card interest rates.

The court entered a permanent injunction that;

1) Effectively puts the defendants out of the telemarketing business.

2) Bars them from misrepresenting that they are affiliated with consumers’ credit card companies.

3) Bars them from claiming that they can get consumers’ credit card interest rates reduced.

4) Ordered the defendants to pay more than $7.8 million.

According to the FTC’s complaint, the telemarketing operation defrauded approximately 12,000 consumers out of more than $7.8 million between 2005 and 2007 by falsely claiming that it could significantly reduce consumers’ existing credit card interest rates, thereby saving them thousands of dollars in both interest and finance charges.

The defendants falsely stated, or implied that they were affiliated with consumers’ credit card companies and for $675 plus $20 shipping and handling, the defendants sent consumers promotional materials that included promises to significantly reduce their interest rates.

The complaint alleged that the defendants promised to reduce the interest charged on their credit cards to between 4.75% and 9%, and save consumers at least $2,500.

The company operating the scam simply set up three-way telephone calls with consumers and their credit card companies, and then requested reductions in interest rates.

The FTC charged that the defendants’ misrepresentations;

1) Violated the FTC Act and the Telemarketing Sales Rule (TSR).

2) Violated the TSR by “spoofing” telephone numbers so that their calls appeared on consumers’ caller identification services as coming from another number.

3) Failed to provide the names of the defendants or their telemarketer on caller identification services.

To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357) or visit their website.

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