The Federal Trade Commission (FTC) and the State of Florida
have charged a couple with violation of the FTC Act, the FTC’s Telemarketing
Rule and the Florida Deceptive and Unfair Trade Practices Act. As a result, a
federal court has halted and frozen the assets of the couple and of their
multiple companies. The FTC and the State of Florida allege that the couple’s
companies have bilked millions of dollars from consumers.
The scammers would cold call consumers, identifying
themselves as “card services,” “credit services,” and “card member services,” and
offer to reduce their credit card interest rate for an up-front fee for between
$695 and $1,495. The scammers did not deliver the on the promised reductions.
And the FTC noted in its complaint that most credit card issuers do not
negotiate interest rates or discuss consumers’ accounts with third parties.
To build credibility, the scammers would claim to know the
amount of the consumer’s credit card debt. They would also provide a license or
badge number, mentioned an Internet domain name of the phony business, and
falsely claim that they had a business relationship with the consumer’s
lenders.
The FTC points out that a third party cannot do anything for
consumers that consumers cannot do for themselves, for free. It recommends that
if you would like a lower credit card interest rate, that you call the credit
card provider’s customer service center (the phone number will be on the back
of your credit card) and request a reduction of your interest rate directly.
The FTC strongly recommends that if you receive a call from
someone claiming that they can reduce your interest rate that you hang up:
- Do not give out your
credit card information to strangers.
- Do not share bank account
or Social Security numbers with strangers.
- Be skeptical of unsolicited
prerecorded calls, especially if your phone number is on the National Do
Not Call Registry.
If you receive a call from a telemarketer that you do not
regularly do business with, file a complaint at
www.DoNotCall.gov or call 1-888-382-1222.
If you think that you have been a victim of a credit card
interest rate reduction scam, file a complaint with the Federal Trade
Commission at
www.ftccomplaintassistant.gov.
Federal Trade Commission:
FTC charges Debt Relief Scammers:
Credit Card Interest Rate Reduction Scams:
