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FTC, Washington Allege Violations in Debt Services Telemarketing

The Federal Trade Commission and Washington state attorney general filed for an injunction against four individuals and telemarketing companies based in Washington and Florida, alleging violations of the FTC Act Section 5, the commission said yesterday.

The FTC and state attorney general filed the complaint in U.S. District Court in Seattle against Debt Solutions Inc.; DSI Financial Inc.; DSI Direct Inc.; Pacific Consolidation Services Inc.; Kenneth Schwartz; Jennifer Ruth Whalen; David C. Schwartz and Greg Moses.

The defendants are accused of placing unsolicited calls to U.S. consumers to market a debt consolidation program that was falsely represented. The complaint further alleged that the program also was marketed at several Web sites including www.debt2wealth.com and www.acceleratedfinancialinc.com.

Consumers were promised the negotiation of lower interest rates on their debt, a promise that the FTC and Washington attorney general allege was not kept. Other allegations in the complaint included the falsity of endorsements claimed by the defendants.

Aside from the FTC Act, allegations of `and Washington state law violations were included in the complaint. The filing seeks refunds to consumers.

Kristen Bremner covers list news, insert media, privacy and fundraising for DM News and DMNews.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters

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