TX AG puts credit card operator out of business
[ Follow Ups ] [ Post Followup ] [ Credit Forum Index ]
Posted by Bob3
(68.95.129.42) on February 07, 2004 at 04:46:03:
But this kind of actions takes 1,000's of complaints. We need to send our respetive AG so many complaints that they can't leave their offices. Then and only then will then take action against illegal CA activities and even OC illegal acts. Don't just complain, file a complaint, file a criminal complaint and follow up weekly. + + + + +
Feb. 5, 2004, 5:47PM Phony credit card operator barred from Texas
Associated Press AUSTIN -- A Houston-based phony credit card provider was fined $1.3 million and barred from doing business in Texas after a judge ruled the company had debited customer's accounts for services that were not rendered. A portion of the fine for U.S. Credit, also known as E-Telemation, will go toward refunds for consumers whose checking accounts were unlawfully debited, Texas Attorney General Greg Abbott said in a statement. U.S. Credit, sued in July, falsely advertised in newspapers, magazines and circulars nationwide that it could obtain credit cards for people with little or no credit history. Consumers were told the company needed checking account numbers to verify the accounts. Customers later learned the company debited their accounts for $99 as an initial "processing" fee. They were then charged $9 a month to maintain their membership for a year, Abbot said. Over nearly two years, the company charged about $1 million from unsuspecting consumers. "Whether you live in Texas or not, this Houston company solicited business in Texas and elsewhere and was an insult to our way of doing honest business here," Abbott said. The $1.3 million judgment requires the company and its owners, Michael C. Corbell and Robert F. Leaumont Jr., to pay almost $450,000 in civil penalties, attorneys fees and investigative costs. Company representatives could not be reached for comment Thursday. Consumers who originally filed complaints about the scheme or others who file new complaints with the attorney general will be contacted about refunds.
Follow Ups:
Post a Followup
|
