SOME CONSUMERS HARMED BY BUYING PRECIOUS METALS TO RECEIVE PARTIAL REFUND

FROM:  FEDERAL TRADE COMMISSION
FTC Sends More Than $2.4 Million in Refunds to Consumers Harmed by Investment Scam

The Federal Trade Commission has sent more than $2.4 million in refund checks to just over a hundred consumers harmed by the Premier Precious Metals scheme, which bilked millions of dollars from investors, including many senior citizens.

In February 2014, the defendants were permanently banned from selling any investment opportunities under a settlement with the FTC. They conned consumers into buying precious metals on credit without clearly disclosing significant costs and risks, including the likelihood that consumers would subsequently have to pay more money or lose their investments.

Affected consumers will recover nearly 70 percent of the amount they lost. Consumers who receive checks from the distribution should cash them within 60 days of the mailing date. The FTC never requires consumers to pay money or to provide information before refund checks can be cashed.

T-MOBILE SETTLES CRAMMING CASE WITH FTC AND WILL PAY MINIMUM $90 MILLION

FROM:  U.S. FEDERAL TRADE COMMISSION 
T-Mobile to Pay At Least $90 Million, Including Full Consumer Refunds To Settle FTC Mobile Cramming Case
Settlement Requires Company To Pay Fines to States and FCC

T-Mobile has agreed to fully refund its customers for unwanted third-party charges it placed on their phone bills, a practice known as mobile cramming, paying at least $90 million to settle a Federal Trade Commission lawsuit filed earlier this year.

In addition to the full refunds T-Mobile is providing, which will resolve the FTC’s lawsuit if approved by the court, T-Mobile is paying $18 million in fines and penalties to the attorneys general of all 50 states and the District of Columbia and $4.5 million to the Federal Communications Commission.

“Mobile cramming is an issue that has affected millions of American consumers, and I’m pleased that this settlement will put money back in the hands of affected T-Mobile customers,” said FTC Chairwoman Edith Ramirez. “Consumers should be able to trust that their mobile phone bills reflect the charges they authorized and nothing more.”

Under the terms of the settlement, T-Mobile will be required to offer full refunds to all affected consumers. The amount of money the company pays must reach at least $90 million in redress or other payments. Should the company fail to do so, the balance must be remitted to the FTC for additional consumer redress, consumer education, or other uses. The settlement requires T-Mobile to contact all of its crammed customers – current and former – to inform them of the refund program and claims process, and to do so in a clear and conspicuous way.

The FTC filed suit against T-Mobile in July, alleging that the company placed millions of dollars in unwanted third-party charges on its customers’ mobile phone bills, receiving 35 to 40 percent of every charge they placed. The charges were for services like horoscopes, love tips and celebrity gossip, for which T-Mobile typically billed consumers $9.99 per month.

The FTC’s complaint alleges that in some cases, T-Mobile was charging consumers for services that had refund rates of up to 40 percent in a single month. The FTC has alleged that because such a large number of people were seeking refunds, it was an obvious sign to T-Mobile that the charges were never authorized by its customers.

According to the FTC’s July complaint, T-Mobile’s phone bills made it nearly impossible for consumers to find and understand third-party subscription charges. The FTC’s complaint against T-Mobile noted that in many instances information about the third-party charges crammed on to customers’ bills was buried deep in phone bills that totaled more than 50 pages in length.

In addition to requiring T-Mobile to provide consumers with full refunds, the settlement requires the company to get consumers’ express informed consent before placing third-party charges on their bills. The company also must ensure that consumers are notified of any third-party charges on their bills and provide them with information about the option to block third-party charges.

The FTC has brought numerous cases related to mobile cramming in recent months, taking action against mobile carriers and the third parties who place unauthorized charges.

The Commission vote approving the proposed stipulated order was 5-0. It is subject to court approval. The FTC filed the proposed stipulated order in the U.S. District Court for the Western District of Washington.

NOTE: Stipulated orders have the force of law when approved and signed by the District Court judge.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them.The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

$1.79 MILLION IN THE MAIL TO CONSUMERS ALLEGEDLY DEFRAUDED BY AMERIDEBT

FROM:  U.S. FEDERAL TRADE COMMISSION   

FTC Sends More Than $1.79 Million in Refunds to Consumers Defrauded by AmeriDebt Scam

The Federal Trade Commission is mailing $1,792,759 in refund checks to 60,813 consumers allegedly defrauded by a credit counseling/debt management scam run by Andris Pukke and his companies, AmeriDebt Inc. and DebtWorks, Inc. The defendants allegedly deceived consumers about their fees, misrepresented that AmeriDebt was a non-profit, and falsely promised to teach consumers how to handle their credit and finances.

The FTC previously returned about $15 million to AmeriDebt consumers. Consumers affected in today’s announcement will receive checks for between $12.70 and $725.10; the amount will vary based upon the amount of each consumer’s loss, less the previous refund received. Those who receive checks from the FTC’s refund administrator should cash them within 60 days of the mailing date. The FTC never requires consumers to pay money or to provide information before refund checks can be cashed.

CONSUMERS DEFRAUDED BY BOGUS '$10,000 CREDIT LINE' TO RECEIVE REFUNDS FROM FTC

FROM:  FEDERAL TRADE COMMISSION 

FTC Sends Full Refunds to Consumers Duped by Marketers of Bogus ‘$10,000 Credit Line’

The FTC is mailing checks totaling over $3.7 million to 26,176 consumers whose bank accounts were debited without their consent by EDebitPay LLC, Dale Paul Cleveland and William Wilson. The defendants deceptively offered a $10,000 credit line that was really a membership to a website where consumers could buy goods.

“The FTC strives to return as much money as possible to defrauded consumers;” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “It is particularly gratifying when we can make consumers whole again.”

In 2011, a federal district court ordered the defendants to pay more than $3.7 million after finding that the defendants were in contempt of court for violating a 2008 court order by selling a bogus “$10,000 credit line”, and a “no cost” prepaid debit card with hidden fees, to consumers who were unemployed or had poor credit.

After obtaining this judgment, the FTC collected it in full. Many affected consumers will receive more than $100; the amounts vary based upon the victim’s loss. Those who receive the checks from the FTC’s refund administrator should cash them within 60 days of the mailing date. The FTC never requires consumers to pay money or to provide information before refund checks can be cashed.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them.