FTC Issues Refunds for Expense Management America Scam

The Federal Trade Commission has announced that it is mailing 1,630 checks worth a total of $1.8 million to consumers who were allegedly scammed by Expense Management America’s illegal telemarketing scheme.

The FTC alleges that Expense Management America and other defendants charged homeowners an upfront fee for debt and mortgage relief services that the companies never provided. According to the FTC, this telemarketing scheme targeted distressed homeowners—many of whom may have been driven deeper into debt because of the illegal telemarketing scheme.

Expense Management America allegedly cold-called thousands of U.S. consumers since 2010, and presented itself as the solution for all of a consumer’s financial problems. According to the FTC, Expense Management America, six affiliated companies and five individuals also operated several websites that encouraged consumers to call them.

The defendants reportedly claimed to help consumers who were struggling to pay mortgages, credit card debts, car payments, or student loans. After delivering a sales pitch by phone, the defendants would reportedly email brochures and financial documents to consumers and obtain authorization to withdraw money from their bank accounts.

The Expense Management America defendants reportedly charged consumers an upfront fee ranging from $2,200 to $10,000 for their services.

At least one brochure provided to consumers by Expense Management America told consumers to discontinue all communication with their creditors:

“Sometimes [creditors will] go to extremes in an attempt to force you into an agreement by saying things such as ‘We’ve never heard of E.M.A.’ Or ‘We don’t deal with them.’ … Sometimes [creditors] even break the law. Don’t be fooled by them. Let E.M.A. do the talking!”

The FTC filed the debt relief scam lawsuit in 2012, charging the defendants with violations of the Telemarketing Sales Rule, the FTC Act and the Mortgage Assistance Relief Services Rule.

In September 2014, the 6th U.S. Circuit Court of Appeals upheld a district court ruling that Expense Management America and the other defendants deceived consumers with the telemarketing scheme promoting fake mortgage assistance and debt relief program. The district court had issued an order that permanently bars the defendants from working in the debt relief or mortgage assistance industries. The district court also entered a judgment of more than $5.7 million.

If you receive a check for the Expense Management America scam, you must cash it by June 8, 2016. According to the FTC, the amount each of each check will be based on each consumers’ individual losses.

If you have questions about the debt relief scam, you can contact the FTC hotline at 1-844-239-8891.

The Expense Management America Debt Relief Scam Lawsuit is Federal Trade Commission v. E.M.A. Nationwide, also d/b/a EMA and Expense Management America, et al., Case No. 112-cv-2394, in the U.S. District Court for the Northern District of Ohio.

UPDATE: February 2019, the FTC mailed out a third round of refund checks totaling $145,000 to Expense Management America victims.