Judge Issues $11.8M Penalty in Credit Card Scheme

Share this article:
A federal judge in New York ordered a group of companies to pay $11.8 million on charges that they used telemarketing to defraud consumers via an advanced-fee credit card scheme, the Federal Trade Commission said Friday.

The operation involved six companies in New York and New Jersey under the control of a single principal, Frederick J. Dick, the FTC said. Consumers paid $219.99 to $289 for Visa and MasterCard credit cards and typically received nothing.

According to the FTC, the six companies are Credit Enhancement Services, Liberty Benefits, Broadway Management, Check Fee (also known as Titanium Blue), Port of Call Centers and Port of Call Center NY.

Consumers found that money they agreed to pay to get the credit cards was debited from their accounts almost immediately and that it was impossible to take advantage of an offered refund guarantee, the FTC said. The money paid by Dick's operation will be used to repay those consumers.

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.