FTC redresses customers for prepaid credit card scam
The FTC stated Palo Alto, Calif.-based pay day loan marketer Swish advertising Inc. worked with San Clemente, Calif.-based debit card provider VirtualWorks LLC to develop the cash advance application that, when done on different websites, duped applicants into becoming a member of Visa Inc. and MasterCard Worldwide-branded prepaid debit cards.
Several thousand customers had been charged an enrollment cost as high as $54.95, and several were additionally charged penalties and fees from their banking institutions as soon as the prepaid credit card reports had been overdrawn. An FTC spokesman stated the banks that issued the prepaid cards are not disclosed simply because they are not mentioned within the litigation, making their identities perhaps perhaps not general public information.
The FTC, which settled with all the defendants in August 2009, is mailing over 110,000 refund checks to consumers that are affected. The normal check is between $10 and $15.
Act spurs prepaid fraudulence
Terry Maher, General Counsel for the Network Branded prepaid credit card Association, said it is hard to ascertain whether or not the payday loan-prepaid card scheme is just a prevalent one but so it will be the consequence of The charge card Accountability, duty and Disclosure Act of 2009 (the bank card Act), which restricted “harvester costs” on bank cards.
Harvester costs had been at problem into the FTC’s instance against CompuCredit Corp. in 2008. The charge card marketer had been charged in June of the year with, on top of other things, billing customers upfront, ill-disclosed costs that drained the available balances on alleged safe charge cards. Continue reading The Green Sheet On The Web Edition