Settlement Reached in FTC Fraud Case
In addition, the Federal Trade Commission (FTC) alleged that Walton also advertised that he could obtain loans for consumers regardless of their past credit histories for an up-front fee.
The proposed settlement of these charges would require Walton to post a $75,000 performance bond for the protection of future consumers before he markets any credit-related goods or services, and would prohibit him from making false representations regarding such goods or services in the future.
The charges were filed in January as part of Project Loan Shark II -- a joint crackdown by the FTC, several state officials, and Canadian law enforcement authorities on 37 telemarketing firms and individuals allegedly engaged in advance fee loan scams.
An FTC brochure for consumers titled "Advance-Fee Loan Scams" states that legitimate lenders never "guarantee" that consumers will qualify for a loan or credit card before they even apply, especially if they have bad credit, no credit, or have filed for bankruptcy in recent years.