Credit Card Protection Marketer Pays $950,000 Settlement

Share this article:
Signature/Financial Marketing Inc. will pay $950,000 to settle deception charges connected with its telemarketing and direct mail campaign to sell credit card protection plans, the Florida attorney general's office said yesterday.

The Delaware-based firm did not admit wrongdoing as part of the settlement. The Florida attorney general's office accused Signature/Financial Marketing of selling protection against fraudulent use of credit cards to consumers for $144 a year through its subsidiary, Credit Card Sentinel Inc.

Consumers received a free trial but did not get adequate notice that they would be charged automatically once the trial period expired, according to the charges. Furthermore, some consumers who received the offer but did not accept the free trial received charges anyway, the state attorney general said.

The state also charged the firm with overstating the potential liability of consumers in cases of credit card fraud. Consumers are responsible for only up to $50 of the charges when their cards are used fraudulently.

Signature/Financial's settlement payment includes a $750,000 donation to the Stetson Law School Elder Law Center to educate seniors about consumer fraud, while the rest pays for the state's investigative costs. In addition, the firm agreed to issue refunds to consumers who subscribed to its credit card-protection service.

Share this article:
You must be a registered member of Direct Marketing News to post a comment.

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in News

B2B Marketers Can Now Self-Serve Ads on Facebook Exchange

B2B Marketers Can Now Self-Serve Ads on Facebook ...

Sitescout's new integration with FBX opens up access to any size marketer, minus campaign spend minimums, according to the RTB company.

Day Two at DMA2014

Day Two at DMA2014

It was awards day in San Diego, with Teradata's Lisa Arthur being named Marketer of the Year, and Google Japan being feted for its direct mail prowess.

Today's Forecast: Chilly With a 10 Percent Lift in Parka Sales

Today's Forecast: Chilly With a 10 Percent Lift ...

The Weather Company launches a website offering marketers free advice on how to take advantage of shifts in the weather.