Electronic Payment Processor Settles With FTC

Share this article:
The Federal Trade Commission announced a settlement Friday with Electronic Financial Group, Waco, TX, and its principals, who are alleged to have assisted deceptive telemarketers by processing millions of dollars through the Automated Clearing House Network, a nationwide electronic funds transfer system.


The defendants are banned from processing payment for any telephone-initiated sales through the ACH Network and are required to pay $3.9 million in consumer redress, the FTC said.


In July, the commission accused EFG, EFG Card Services, Paul McClinton, Jerry Federico and Randy Balusek with processing ACH transactions on behalf of numerous fraudulent outbound telemarketing operations -- some of which the FTC previously sued -- in violation of the Telemarketing Sales Rule.


The company also was accused of breaching a contractual provision with its bank that required EFG to comply with a prohibition on processing ACH transactions on behalf of outbound telemarketers. It also was accused of deceptively marketing its own advance-fee debit card.


Share this article:

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in News

News Byte: Comcast Expanding Global Ad Delivery Through Partnership

News Byte: Comcast Expanding Global Ad Delivery Through ...

Through a partnership with Adstream , Comcast's AdDelivery Service expands its footprint across the globe.

40 Under 40 2014: Nominations Are Now Open!

40 Under 40 2014: Nominations Are Now Open!

It's time to nominate the 2014 crop of young marketing luminaries for Direct Marketing News's 40 Under 40 Awards. The deadline is Friday, June 6, 2014.

News Byte: MediaCrossing Partners with ASL Marketing on Youth Marketing Tool

News Byte: MediaCrossing Partners with ASL Marketing on ...

The digital media trading firm and marketing database company aim to help marketers target 13 to 34 year olds.