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The Federal Trade Commission announced that it would be mailing 10,387 checks totaling more than $969,000 to consumers who lost money to a credit card interest rate reduction scam.
According to the announcement, the Federal Trade Commission (FTC) filled a complaint against Innovative Wealth Builders, a telemarketing operation, “[a]s part of the Federal Trade Commission’s ongoing crackdown on payment processors that turn a blind eye to fraud.”
The FTC initiated litigation against the payment processing company for allegedly assisting and facilitating a telemarketing credit card interest rate reduction scam. The FTC alleged that the company falsely promised consumers it could reduce their credit card interest rates and save them thousands of dollars on their debts. The FTC accused Innovative Wealth Builders of making false claims to consumers about their reduction services and refund policies, and billing consumers without their consent.
“In an amended complaint filed in federal court, the FTC alleged the payment processor, Independent Resources Network Corp. (IRN), doing business as IRN Payment Systems (IRN), knew, or consciously avoided knowing, key facts about the illegal conduct of a telemarketing scam operated by Innovative Wealth Builders, Inc. (IWB), and chose to continue profiting from processing IWB’s credit card transactions,” said the statement from the FTC. “Among the many indicators of illegal conduct that IRN allegedly ignored were IWB’s ‘alarmingly high chargebacks rates.’”
According to the FTC, a “chargeback” is when a consumer disputes a charge to a credit card and the charge is reversed. The FTC pointed out in its announcement that the average chargeback rate in the United States is well below 1 percent, meaning fewer than one out of every 100 credit card transactions is reversed as a result of a chargeback. However, the IWB’s chargeback rate averaged above 20 percent for several years, and exceeded 40 percent in multiple months.
“Despite knowing, or consciously avoiding knowing, the illegal nature of the IWB Defendants’ business, IRN processed millions of dollars of credit card transactions for IWB, thereby earning considerable fees for itself while allowing the IWB Defendants to harm thousands of consumers who purchased the IWB Defendants’ bogus credit card interest rate reduction services,” the complaint states.
Consumers should expect to receive checks worth about $92 from Analytics LLC, the FTC’s FTC’s refund administrator. These checks need to be deposited or cashed within 60 days of the mailing date. According to the FTC’s announcement last week, the FTC never requires consumers to pay money or to provide information before refund checks can be cashed.
Consumers who receive checks and have questions can contact Analytics LLC at 1-855-294 0139.
The Credit Card Interest Rate Reduction Scam Lawsuit is Federal Trade Commission v. Innovative Wealth Builders Inc., et al., Case No. 8:13-cv-00123-VMC-EAJ, in the U.S. District Court for the Middle District of Florida.
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One thought on FTC Sends Checks to Victims of Credit Card Interest Rate Reduction Scam
So, when will the checks be arriving….?