$5 Million in Refunds Delivered to Victims of Bogus Credit Repair Scheme
The Federal Trade Commission (“FTC”) has announced that it is distributing over $5 million in refunds to consumers who were deceived by the fraudulent credit card debt relief scheme operated by ACRO Services. This settlement comes after the FTC filed a lawsuit in November 2022 against ACRO Services and its associated companies, which included names such as American Consumer Rights Organization, Consumer Protection Resources, Reliance Solutions, Thacker & Associates, and Tri Star Consumer Group.
The complaint alleged that ACRO Services ran a deceptive telemarketing operation, promising consumers they could drastically reduce or even eliminate their credit card debt in just 12 to 18 months. To make these false claims seem legitimate, the company charged consumers thousands of dollars in unlawful upfront fees, claiming they would be applied toward the debt that would be eliminated through the program. In addition, consumers were also charged monthly fees ranging from $20 to $35 for “credit monitoring” services that were never effectively provided.
As part of a settlement, the individuals behind the operation agreed to permanent bans from the debt relief and telemarketing industries, and they were required to surrender assets to fund consumer refunds. Additionally, the FTC’s action against payment processor BlueSnap, which provided services to the ACRO scheme, also contributed to the pool of funds used for refunds.
Now, the FTC is sending refund checks to 7,687 affected consumers.
For companies in the financial services or telemarketing space, this case emphasizes the importance of compliance with consumer protection laws and the need for clear communication with your customers. By prioritizing honesty, transparency, and ethical business practices, you not only protect your business from potential legal issues but also build trust with your customers, which is key to long-term success.
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This article is for information purposes only. It is not intended to be and should not be relied on as legal advice for any particular matter.