Commission Sends Consumers Refund Checks in Advance-Fee Credit Card Case

On July 15, 2009, the Federal Trade Commission sent refund checks to consumers who allegedly had been defrauded in the case of FTC v. Integrity Financial Enterprises, LLC. Consumers who filed a claim with the FTC received checks averaging more than $200, which covered more than 85 percent of their losses. The refund checks must be cashed by September 13, 2009, or they become void.

In 2008, the FTC sued Integrity Financial Enterprises, LLC (which did business as Infinite Financial and National Benefits Exchange), National Benefits Exchange, Inc., and the companies’ owner, alleging that they promised consumers a “credit card” that could be used like a Visa or MasterCard for an up-front fee of $200 to $300, but which actually could be used only to buy products from the defendants’ Web site or catalog. The resulting court order and settlement in this case required the defendants to forfeit their financial assets to the FTC, which distributed the money to consumers who were harmed by the defendants’ conduct.

Copies of the documents mentioned in this release are available from the FTC’s Web site at http://www.ftc.gov and from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, DC 20580. Call toll-free: 1-877-FTC-HELP.

(FYI 35.5.2009.wpd)