WBK Industry News - Litigation Developments

Court Issues TRO Against Service Provider after FTC and Ohio AG Alleged that it Helped Promote Credit Card Interest Reduction Scheme

At the request of the FTC and Ohio AG, the U.S. District Court for the Western District of Texas recently issued a temporary restraining order against a voice over internet protocol service provider and its Canadian counterpart for facilitating a credit card interest rate reduction scam.  As previously covered by WBK, the original complaint alleged that the companies engaged in deceptive telemarketing schemes to market credit card interest rate reduction services and charge fees to U.S. consumers for services that were never provided.  The original complaint alleged violations of the FTC Act and the Telemarketing Sales Rule (TSR), as well as Ohio consumer protection laws.  The original complaint was amended to add the two companies as defendants.