FTC Brings Down Credit Card Scammers
When you give hundreds of dollars to a company that says they will, in return, save you thousands of dollars in credit card interest rate charges, you expect more than a set of instructions on how to do it yourself. Yet, that is precisely what three companies are accused of doing to cardholders all across the country over the past 2 years, prompting the Federal Trade Commission to request that a federal judge shut them down and freeze their assets, which said judge has done.
As reported by The Consumerist, the companies that allegedly engaged in these shady practices are Advanced Management Services NW LLC, doing business as AMS Financial; Rapid Reduction System’s [sic] LLC; and PDM International, Inc., doing business as Priority Direct Marketing International, Inc.
Here’s how the scam worked:
1) The defendents made pre-recorded ”robocalls” to cardholders that not only implied the calls were from the credit card companies themselves, but also sounded like urgent matters that needed to be addressed immediately
2) After pressing 1 to speak with someone about this “pressing” issue regarding “Card Services” or “Financial Services,” cardholders were told by the representatives they were in a position to negotiate lower interest rates for them
3) In exchange for a fee of $499 to $1,590, cardholders were led to believe this “service” would ultimately save them at least $2,500 in interest rate charges
4) After paying the fees, what cardholders received was nothing more than a set of instructions on how to pay down their balance so as to avoid interest rataes
5) When cardholders requested refunds, they were either denied, given the run-around or received a refund minus a “non-refundable” fee
Though these three companies won’t be bothering any of us again, you can be certain there are plenty of other bogus businesses out there hatching new schemes.
Anytime someone calls you with an offer that sounds too good to be true, it probably is. And if you’re led to believe it’s your credit card company on the other end of the line, the real deal will not give you guff for politely explaining that you want to be sure of the authenticity; that you’re going to hang up and call back using a number you know to be true.
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