Blog Posts Tagged with Payments and Billing

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FTC says NetSpend decked consumers with deceptive claims for prepaid debit cards

From the perspective of consumers, the whole purpose of prepaid debit cards – their reason for living, if you will – is to give consumers immediate access to their money. Those cards are an especially important financial lifeline for people who don’t have traditional bank accounts.

Record $1.3 billion ruling against Scott Tucker and others behind AMG payday lending

The FTC’s lawsuit against AMG Services, Scott Tucker, and others challenged deceptive and unfair payday lending and debt collection practices that targeted cash-strapped consumers. The case has already resulted in an important ruling related to the scope of the FTC Act. But an order granting the FTC’s Motion for Summary Judgment includes a history-making provision: a $1.3 billion financial remedy – the largest ever in a litigated FTC case.

FinTech Forum: A closer look at marketplace lending

Innovative financial technology is changing the way consumers borrow, share, and spend money, offering the promise of increased convenience and access to financial services. The FTC is hosting a series of FinTech events to broadly explore the implications of this financial technology for consumers, building on the agency’s longstanding focus on technological innovation and extensive enforcement experience in the area of non-bank financial practices.

7 quotes of note from the Amazon decision

In Amazon’s Appstore, many apps geared toward kids prompted them to use fictitious currency, like a “boatload of doughnuts” or a “can of stars,” as part of game play. But a federal district court recently agreed with the FTC that Amazon’s practice of charging cold, hard cash for those imaginary items and billing parents and account holders without their express informed consent violates Section 5 of the FTC Act.

Weeding out deceptive and unfair data practices

Ask any gardener and they’ll tell you it’s a fool’s errand to lop weeds off at the surface. You also have to target the root system that allows them to propagate in the first place. That’s one of the messages to take from a judgment in the FTC’s case against Ideal Financial Solutions, Inc., and previous actions against data brokers and others who lent their green thumbs to Ideal’s large-scale consumer scam.

Top 10 consumer complaint categories: Is your industry on the list?

Usually a Top 10 list is something industries are delighted to find themselves on. So we’ll call this one a Flop 10 list, the FTC’s annual report about consumer complaints added in 2015 to the Consumer Sentinel database. How did your industry – and your state – rank in reported complaints?

First, the box score:

When teamwork helps the scheme work

Remember the scene in the movie “Bull Durham” where veteran Crash Davis is prepping rookie Nuke LaLoosh for a TV interview and schools him on clichés about teamwork? “I’m just happy to be here. Hope I can help.” They don’t just apply to baseball. Most enterprises rely on help from others on the team. Unfortunately for consumers, that includes questionable outfits that need another company’s help to accept credit cards.

5 steps to help protect your business from a supplies surprise

You’ve got lots of needs as a business owner – among them, supplies you rely on from square-dealing vendors. But what if the vendor misleads your staff about the price or quantity of those supplies, hits you with a huge invoice you didn’t authorize, and then tries to pressure you into paying it? Those are just some of the sales tactics the FTC is challenging in recent law enforcement actions.

The gift that keeps on taking

According to the musical “Grease,” some things go together like “rama lama lama ka dinga da dinga dong.” Some other things go together, too. They’re easier to pronounce, but do much more harm to consumers. What do we have in mind?

Bogus weight loss claims and deceptive “free” trial offers. 

IdentityTheft.gov means business!

Why is it your business if identity theft victims can get free personal recovery plans and other help that makes it easier for them to report and recover from identity theft?  Here’s an answer: Because it’s good business – for you, your customers, your employees, and your community.

Changes to the Telemarketing Sales Rule: What your business needs to know

Law enforcement, education, technology, crowd-sourcing. The FTC fights the battle against illegal telemarketing on every possible front – and here’s the latest development. After considering public comments, the FTC just amended the Telemarketing Sales Rule (TSR) to protect consumers by prying four tools out of the hands of fraudsters.

FTC calls Sprint on $2.9 million risk-based pricing violation

Two people walk into a deli and both order a pastrami on rye. When the check arrives, one is charged $8. The other is surprised to get a bill for $15.99. That’s not the start of an old Henny Youngman joke. It’s an analogy that raises some of the issues in the FTC’s proposed $2.95 million settlement with Sprint for allegedly charging customers with lower credit scores a monthly fee without giving them the proper up-front notice required by law.

Running the risk

The online ads offer consumers a “risk-free trial” of skincare products from companies that claim to be accredited by the Better Business Bureau with an A- rating. How could that possibly be deceptive or unfair? Let us count the ways.

Will a $63 million FTC-CFPB settlement encourage Green Tree to turn over a new leaf?

As the name suggests, Green Tree Servicing was supposed to service homeowners’ mortgages by collecting and crediting monthly payments. But according to a $63 million settlement announced by the FTC and CFPB, rather than service, Green Tree gave many homeowners the business.

BCP’s Office of Technology Research and Investigation: The next generation in consumer protection

The FTC keeps its finger on the pulse of markets, channeling its resources to protect consumers from deceptive and unfair practices involving new technologies. A few years ago, we created the Mobile Technology Unit to help bring consumer protection into the mobile era. Staffers assist the Bureau of Consumer Protection and FTC regions with law enforcement investigations and lend their expertise to the development of consumer protection policy.

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