The Federal Trade Commission’s fight against the infamous “Rachel from Cardholder Services” robocalls has produced a court order to give $1.7 million in refunds to defrauded consumers.
The case dates to November 2012, involving defendants including Universal Processing Services of Wisconsin, a payment processor, and telemarketer Hal Smith and his HES Merchant Services Company, the FTC said today. Per an order from US District Court for the Middle District of Florida, Universal Processing Services and HES will have to pay $1,734,972, which the FTC said “will be used to provide refunds to defrauded consumers.”
“The court held Smith and HES liable for 11 violations of the FTC Act and the Commission’s Telemarketing Sales Rule (TSR), based on their participation in a deceptive telemarketing scheme purporting to be a credit card interest rate reduction service that used robocalls to solicit consumers,” the FTC said. “The defendants failed to disclose the identity of the person(s) responsible for placing the robocalls and unlawfully calling numbers that had been registered on the FTC’s Do Not Call Registry.”
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