In January, federal regulators announced they had put a stop to an apartment rental scam in which homes (that may not exist) are listed online with the sole purpose of tricking prospective renters into paying for “credit checks” that will never be done. Now, the operators of the scheme must pay $762,000 to put an end to the Federal Trade Commission’s allegations. [More]
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Company That Sold Fake Payday Loan Debts To Collectors Must Pay $4.1M
By 10.17.17
We’ve heard it before: A debt collection company engaged in a “phantom” debt scheme in which they try to entice unsuspecting individuals into paying debts they don’t actually owe. While federal regulators have cracked down on these unscrupulous organizations in the past, they are now turning their attention to the companies providing information on these supposed debts. To that end, the Federal Trade Commission today ordered one such data company to pay $4.1 million. [More]
Feds Shut Down Loan Application Sites That Illegally Sold Personal Data
By 7.6.17
There are a lot of people who need to borrow money quickly but don’t know where to go for a loan. So they go online, where there are plenty of shady operators promising to connect loan applicants with lenders. What the borrower doesn’t know is that these lead generators may also be selling their personal information with third parties who have nothing to do with that loan. [More]
Toyota To Pay $14M To Victims Of Crash Involving Camry
By 6.12.17
Eleven years after a crash caused by a Toyota Camry that accelerated uncontrollably, killing three people and injuring several others, a judge upheld a jury’s finding that Toyota was liable for the incident, ordering the carmaker to pay $14 million.
Vacation Deal Scammer Ordered To Pay $6 Million To Delta For Impersonating Airline
By 4.20.17 — Updated: 5.9.17
Another scam artist caught pretending to represent a major airline has been hit with a huge judgment. This time, it’s a Florida businessman who has been ordered to pay $6 million for using Delta Air Lines’ name and logo to lure victims into buying bogus vacation packages. [More]
Stratford Career College Settles Charges It Deceived Students Over Diploma Program
By 2.3.17
Obtaining a high school diploma can be a gateway for a consumers’ future, whether it be moving on to a college or university or scoring a job. But, as thousand of students of Stratford Career Institute found, a diploma is only good if it’s recognized. To that end, the correspondence school has agreed to a suspended $6.5 million settlement resolving federal regulator’s allegations that it misled students about its high school diploma course. [More]
Man Who Made Fake News Sites To Sell “Pure Green Coffee” Must Pay $30M To Customers
By 11.14.16
Two years after the Federal Trade Commission sued the marketers of the “Pure Green Coffee” for using fake news sites and fictional reporters to push the weight-loss supplement, the man behind those companies has been ordered to repay $30 million to customers tricked into buying the product. [More]
Marketer Of Pills Claiming To “Prevent & Reverse” Graying Hair Ordered To Refund $391K
By 9.23.16
Sporting an ashen ‘do can make a person look distinguished — or fashion forward — but there will always be people who want to stave off the gray as long as possible. But why shell out big bucks for dye jobs, when dietary supplements promise to actually reverse the presence of gray hair? Maybe because there’s no proof that those pills will actually do anything to get rid of the grays? [More]
Wells Fargo Must Pay $203M To Customers After Supreme Court Rejection
By 4.4.16
Nearly six years after a federal court ordered Wells Fargo to pay $203 million in refunds to customers victimized by the bank’s overdraft policies — and after years of bouncing back and forth through the appeals process — the U.S. Supreme Court has decided to let that judgment stand. [More]
Debt Relief Company Must Pay $170M For Illegally Charging Customers
By 3.18.16
Back in 2013, the Consumer Financial Protection Bureau sued Morgan Drexen, accusing the debt relief company of deceiving customers with promises of reducing their debt and charging illegal upfront fees to do so. Today, the Bureau announced a federal district court approved a final judgement requiring the company to pay $132.8 million in restitution and a $40 million civil penalty. [More]
Feds Shut Down Illegal Student Loan Debt Relief Operation
By 3.15.16
Last December, the Consumer Financial Protection Bureau filed a lawsuit against Student Loan Processing.US, a debt relief operation, that allegedly reaped millions of dollars from thousands of consumer by promising to provide repayment benefits that come free of charge with federal student loans. Today, the agency took steps to put an end to the organization once and for all. [More]
Operation That Illegally Debited Consumers’ Bank Accounts Must Repay $43M
By 3.9.16
Months after federal regulators ordered a data broker to pay $7.1 million for selling consumers’ sensitive information to scammers, a court ordered one of those alleged scammers and its subsidiaries and operators to provide $43 million in relief to victims. [More]
Mortgage Relief Scammers Ordered To Pay $5.4M
By 12.15.15
Eight months after federal regulators took action to stop a mortgage relief company from making hollow promises to homeowners facing foreclosure, the ringleaders behind the operation have agreed to pay more than $5.4 million in penalties and never work in the mortgage relief or telemarketing business again. [More]
7 Things We Learned About How Debt Collection Lawsuits Affect Minority Neighborhoods
By 10.9.15
While some debt collectors have resorted to questionable and sometimes illegal practices, there are also legal routes to debt collection — like lawsuits and wage garnishment — that can nonetheless have a destructive effect, particularly in low-income, minority neighborhoods. [More]
Operator Of Bogus Debt-Relief Scheme Must Return $7.9M To Harmed Consumers
By 10.5.15
The operator of a bogus debt relief scheme that federal regulates say only left consumers deeper in debt must provide some actual assistance to those affected by the program in the form of a $7.9 million judgment imposed by the Federal Trade Commission. [More]
Company That Marketed Weight-Loss Products With Fake News Sites Must Return $11.9M To Consumers
By 4.6.15
UPDATE: The Federal Trade Commission has revised the judgement amount that LeadClick Media must return to consumers. The company must provide $11.9 million in redress, down from the previous judgement of $16 million. The $4.1 million previously ordered to be surrendered by CoreLogic was actually part of the total $11.9 million that the company was ordered to pay, an FTC representative tells Consumerist. The headline and text below have been updated to accurately reflect this revised figure.
The Federal Trade Commission’s crackdown on deceptive weight-loss marketers continued today, as the agency announced an affiliate marketing network and its parent company must return $11.9 million to consumers who were lured into purchasing a range of weight-loss products through fake news websites. [More]
