FTC Settles on Fee-Based Credit Card Violations
The FTC said Chivers falsely represented that consumers would get a credit card after paying an advance fee of $79. Many consumers received nothing after paying the fee or got applications for a secured credit card or requesting additional fees, the FTC said.
Along with the $85,000, a suspended judgment of $250,000 will be reinstated if it is found that Chivers lied on his financial statement.
The settlement prohibits him from offering credit for a fee or from representing a high likelihood of success in obtaining a card if a fee is paid. He also is prohibited from selling customer lists.