Electronic Payment Processor Settles With FTC

Share this content:
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.


Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above