FTC Consumer Protection Gains

When the Federal Trade Commission (FTC) files lawsuits against companies offering payday loans or other debt relief or assistance programs, do consumers in Chicago ever see any of the funds that come from the settlements? According to a recent report from Legal News Line, the FTC recently indicated that it plans to provide more than 145,000 consumers with almost $20 million in compensation from the company One Technologies LP and two of its partner companies.
FTC Lawsuit for Fraudulent Debt and Credit Assistance Programs
Why is the FTC returning more than $20 million to hundreds of thousands of consumers that had a connection to One Technologies LP? As the article explains, the organization and its partner companies “ran an online scheme that attempted to convince consumers that it provided ‘free’ credit score access.” The FTC indicated that the defendants not only took an initial fee from consumers who signed up for those services, but the defendants also charged consumers a monthly fee of $29.95 for “un-ordered credit monitoring.”
For consumers who have recently filed for personal bankruptcy or are dealing with significant debts, scams like these can be appealing because they can provide a way to keep up with the impact of debts on a person’s credit score.
As the FTC claim made clear, the defendants violated several different federal and state laws, including but not limited to:
  • FTC Act: The FTC Act, or 15 U.S. Code § 45, specific that it is unlawful to engage in “unfair methods of competition in or affecting commerce, and unfair or deceptive acts or practices in or affecting commerce.” The law also gives the FTC power to prohibit unfair practices.
  • Restore Online Shoppers’ Confidence Act (ROSCA): This Act (15 U.S.C. §§ 8401-8405) prohibits “any post-transaction third party seller (a seller who markets goods or services online through an initial merchant after a consumer has initiated a transaction with that merchant) from charging any financial account in an Internet transaction unless it has disclosed clearly all materials terms of the transaction and obtained the consumer’s express informed consent to the charge.”
  • Illinois Consumer Fraud Act: The Illinois Consumer Fraud Act, also known as the Consumer Fraud and Deceptive Business Practices Act (815 ILCS 505/), prohibits “unfair methods of competition and unfair or deceptive acts or practices,” including consumer fraud.
Other FTC Actions
The recent action taken against One Technologies LP is not the only consumer protection action that has served to protect individuals in the last several months. A list of proceedings from the FTC emphasizes that the agency also has obtained consumer refunds from a number of other companies, including Direct Benefits Group Refunds in September 2016 for its payday lending services, and Expense Management America Refunds in May 2016 for its mortgage and debt relief services. In each of these cases, the FTC highlighted the problems of online scams that prey upon debtors.
It is extremely important for agencies like the FTC to hold companies accountable for deceptive or fraudulent practices, particularly in their relationships with consumers. If you believe that you have been targeted by a debt relief company or another organization that has violated consumer protection laws, such as the Fair Debt Collection Practices Act (FDCPA), you may be eligible to receive compensation. An experienced Oak Park consumer protection lawyer can speak with you today about your case. Contact the Emerson Law Firm today to learn more about how we can help.
See Related Blog Posts:

Comments

Post a Comment

Popular posts from this blog

New Information on Debts That Bankruptcy Cannot Discharge

If you are thinking about filing for bankruptcy in the Oak Park area, it is important to know that certain kinds of debts cannot be discharged in a bankruptcy case. Under U.S. bankruptcy law, these are known as non-dischargeable debts, or exceptions to discharge. There are certain types of debts that have long been identified clearly as non-dischargeable debts, while there are misconceptions about other types of debts that may or may not be dischargeable. As an article in CNBC discusses, the U.S. Supreme Court recently issued a ruling in the case of Bartenwerfer v. Buckley , which clarifies that debts incurred due to another party’s fraud cannot be discharged in an individual’s bankruptcy case. Our Oak Park bankruptcy attorneys can explain the Court’s recent ruling and provide you with additional information on dischargeable and non-dischargeable debts. Supreme Court Says Debt Incurred Due to Another’s Fraud is Non-Dischargeable The recent Bartenwerfer case involved a debtor attempti
Read more

Learning About Different Types of Wills

Whether you are young or old, single or married, wealthy or with limited financial means, healthy or dealing with a medical condition, it is important to make a will. Many people have incorrectly heard that wills are only necessary for particular people, such as those with a substantial amount of assets or for older adults in poor health. Yet wills are critical for adults of all ages, and an experienced Oak Park estate planning lawyer can help you to make one. Before you begin working with a lawyer on a will, you might start conducting your own research into wills in Illinois and the requirements for a valid will. In so doing, you are likely to come across information about many different types of wills, and you are probably going to wonder whether you will need more than one kind of will. In short, there are different terms that can be used to describe the form or function of a will, as well as some distinct types of wills. Our Oak Park estate planning attorneys can explain in more
Read more

Younger Parents Need an Estate Plan

It is critical for younger parents to have an estate plan, even if they know they are healthy and do not anticipate that anything will happen in the near future. Much too often, younger parents assume that they can wait until they are older to consider estate planning or until there is a health-related reason to begin the estate planning process. Yet estate planning is critically important for parents who have minor children. While estate planning is important for adults of all ages, it can allow parents to make important decisions about who will care for their children in the event that they become unable to do so themselves. Our Oak Park estate planning lawyers can explain in more detail. Naming a Guardian for Your Minor Children in Your Will Most importantly for younger parents, making a will allows you to name a guardian who can care for your child in the event of your unexpected death. Nobody anticipates a deadly accident or a sudden situation in which there is a need for another
Read more