Feb 8, 2018 | Consumer Protection, Employment & Technology Archive
Operation Allegedly Took More Than $14 Million From Consumers Seeking to Start Their Own Online Business; Operation’s Defendants Falsely Claimed Consumers Could Earn Substantial Income
On February 8, 2018, the Federal Trade Commission announced that at the FTC’s request, a federal court temporarily halted an operation that took more than $14 million from consumers seeking to start their own online business. The operation misrepresented that its purported business coaching program would enable consumers to earn substantial income, such as “six figures in 90 days or less.”
According to the FTC, the defendants, Digital Altitude LLC, Digital Altitude Limited, Aspire Processing LLC, Aspire Processing Limited, Aspire Ventures Ltd, Disc Enterprises Inc., RISE Systems & Enterprise LLC (Utah), RISE Systems & Enterprise LLC (Nevada), The Upside LLC, Thermography for Life LLX, also doing business as Living Exceptionally Inc., and Michael Force, Mary Dee, Morgan Johnson, Alan Moore and Sean Brown, induced consumers to pay for a series of tiered memberships with increasing fees, falsely claiming that consumers would learn how to make substantial income with an online business. The defendants promised consumers they would receive individualized coaching from successful marketers that would provide what they needed to build a successful business, but, in reality, these were merely salespeople selling higher membership levels in the defendants’ program.
The defendants, which were charged with violating the FTC Act, promoted their scheme via webpages and social media platforms, including Facebook and Instagram, and offered their marketing materials for consumers to use in posting their own ads touting the scheme. The FTC’s complaint states that most of defendants’ customers never earn substantial income, including some people who were charged more than $50,000.
The FTC vote authorizing the staff to file the complaint was 2-0, and the United States District Court, Central District of California, issued a temporary restraining order against the defendants on February 1, 2018.
Source: FTC.gov
Feb 7, 2018 | Consumer Protection, Employment & Technology Archive
Student Loan Debt Relief Operation Allegedly Bilked More Than $28 Million From Thousands of Consumers in the United States by Falsely Promising to Reduce Consumer Debt
On February 7, 2018, the Federal Trade Commission announced that it has charged a student loan debt relief operation with bilking more than $28 million from thousands of consumers throughout the United States by falsely promising that consumers’ monthly payments would go towards paying off their student loans.
According to the FTC, the defendants, American Financial Benefits Center, also doing business as AFB and AF Student Services; AmeriTech Financial; Financial Education Benefits Center; and Brandon Demond Frere, sent personalized mailers to consumers falsely claiming they were eligible for federal programs that would permanently reduce their monthly debt payments to a fixed low amount or result in total loan forgiveness.
The FTC’s complaint notes that, although the Department of Education and state government agencies administer loan forgiveness and discharge programs, none of the programs guarantees a fixed, reduced monthly payment for more than one year, and most people do not meet the programs’ strict eligibility requirements.
Allegedly, the defendants charged up to $800 in illegal up-front fees, purportedly to enroll consumers in a federal loan assistance program. The defendants also charged a $100-$1,300 advance fee for enrollment in a “financial education” program and an additional monthly $49-$99 membership fee for the life of the loan, which typically is 10-25 years. Purportedly, this financial education program provided consumers access to various resources unrelated to consumers’ student loans, such as “Key Ring & Luggage Protection,” “Everyday Grocery Savings,” “Auto Buying Service and Maintenance Discounts,” “Financial Calculators,” “medical and wellness discounts,” and “Access to Dozens of Informational & Useful Web links.”
Consumers, according to the FTC, were tricked into believing their monthly payments were going toward paying down their student loans. Although consumers were sending money to the defendants, none of those payments went toward paying off their student loans, and in some instances the consumers’ loan balances instead accrued interest. The defendants often refused to provide refunds or returned substantially less than what people paid.
The defendants are charged with violating the FTC Act and the FTC’s Telemarketing Sales Rule.
This is the eighth action the FTC has taken in Operation Game of Loans, the first federal-state law enforcement initiative targeting deceptive student loan debt relief scams.
Source: FTC.gov
Feb 7, 2018 | Consumer Protection, Employment & Technology Archive
Luxury Vehicle Retailer Allegedly Engaged in Unsolicited Text Message Telemarketing
On January 29, 2018, a class action lawsuit alleging violations of the Telephone Consumer Protection Act (TCPA) was filed against The Collection LLC in United States District Court, Southern District of Florida.
According to the class action complaint, on December 12, 2017, The Collection, a Florida-based retailer of luxury vehicles, allegedly sent an unsolicited text message from (833) 600-0059 to the Plaintiff’s cellular telephone using an automated text-messaging platform. The message stated: “THE COLLECTION: Happy Holidays! We are offering 12 Days of Deals. Follow us on Facebook for your daily offer https://goo.gl/6R1aN% Reply STOP to opt-out”
The link in the message, according to the complaint, was a web link to The Collection’s Facebook page, which included postings indicating the terms of The Collection’s promotions. The following is an image of the message, as reflected in the complaint:
The class action was brought on behalf of all individuals in the United States who within the past four years were sent a text message to their cellular telephone by The Collection, or anyone on The Collection’s behalf, using an automatic telephone dialing system, without an emergency purpose and without the prior express consent of the text message recipient. The class action seeks, among other things, statutory damages of $500 for each TCPA violation, as well as treble, or triple, statutory damages of $1,500 for each willful and knowing violation of the TCPA.
Have You Received Unsolicited or Unwanted Telemarketing Calls, Autodial Calls, Prerecorded Calls, Robocalls or Text Messages from The Collection LLC or Any Other Company?
If you have received unwanted, unsolicited or harassing telemarketing calls, autodial calls, prerecorded calls, robocalls or text messages and would like to speak privately with an attorney about your potential legal rights, please contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], complete the form above on the right or send an e-mail to [email protected].
Feb 7, 2018 | Consumer Protection, Employment & Technology Archive
Synchrony Bank Faces Class Action Over Alleged Telephone Consumer Protection Act Violations
A class action was filed on February 2, 2018 for damages and injunctive relief in United States District Court, Middle District of Florida, for alleged violations of the Telephone Consumer Protection Act (“TCPA”) by Synchrony Bank.
According to the class action complaint, in late March 2017, Synchrony, or its agent, called the Plaintiff’s cellular telephone multiple times from (678) 518-2904. Plaintiff, who never provided consent, including prior express written consent, did not answer the alleged automatic telephone dialing system-generated calls she received on her cell phone. The Plaintiff, when she dialed (678) 518-2904, found out from a representative of Synchrony, or its agent, who answered the call that the purpose of the call was debt collection. The Plaintiff stated that she did not have any debt and requested that Synchrony, or its agent, stop calling her. The Plaintiff also was informed during a conversation with a “supervisor” that Synchrony, or its agent, were trying to collect on a debt related to a Lowe’s credit card. The Plaintiff told the supervisor that she did not have a Lowe’s credit card.
Among other things, the class action lawsuit against Synchrony Bank seeks an award of $500 in statutory damages for each and every call made to the cellular telephones of the class members using an automatic telephone dialing system, in addition to treble, or triple, damages of $1,500 for alleged numerous and multiple knowing and/or willful violations of the TCPA.
Have You Received Unsolicited or Unwanted Telemarketing Calls, Autodial Calls, Prerecorded Calls, Robocalls or Text Messages from Synchrony Bank or Any Other Company?
If you have received unwanted, unsolicited or harassing telemarketing calls, autodial calls, prerecorded calls, robocalls or text messages and would like to speak privately with an attorney about your potential legal rights, please contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], complete the form above on the right or send an e-mail to [email protected].
Feb 7, 2018 | Consumer Protection, Employment & Technology Archive
Alleged Prerecorded and Automated Telemarketing Calls Made to Cellular Telephones to Promote and Sell Assured RX’s Products Without Prior Express Consent
On January 25, 2018, a class action lawsuit was filed against Assured RX LLC under the Telephone Consumer Protection Act (“TCPA”) and the Pennsylvania Telemarketer Registration Act, as a result of Assured RX’s alleged “practice of harassing consumers nationwide with automated and prerecorded telemarketing calls.”
According to the complaint, in September 2017, using a prerecorded voice, Assured RX placed several automated calls to the cellular telephone of the Plaintiff from telephone numbers (570) 660-9173, (570) 660-3074, (570) 660-1194, and (570) 660-3943. During one such call in September 2017, Assured RX called Plaintiff’s cellular telephone, and when Plaintiff answered, she heard a prerecorded message that marketed some type of pain relief cream. The prerecorded message did not, according to the complaint, identify the name of the company calling, did not provide a call back number, and the Plaintiff, after listening to the prerecorded message, was connected to an individual who was with “Pain Management Network.”
The Assured RX Class Action and Statutory Damages Sought
The class action lawsuit was brought on behalf of individuals who had not expressly consented in writing to receive a telephone call on their cellular telephone made through the use of an automatic telephone dialing system and/or an artificial or prerecorded voice.
Plaintiff and other members of the class seek, among other things, a minimum of $500 in statutory damages for each violation of the TCPA and treble, or triple, statutory damages of $1,500 for each knowing or willful violation of the TCPA.
Have You Received Unsolicited or Unwanted Robocalls on Your Cellular Telephone from Assured RX or Any Other Company?
If so, your rights under federal and state law may have been violated. If you wish to speak with an attorney regarding your potential legal rights, please contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], complete the form above on the right or e-mail [email protected].
Feb 6, 2018 | Consumer Protection, Employment & Technology Archive
Overtime Wages Lawsuit Filed on Behalf of Mortgage Lenders of America Team Leads, Team Leaders, Loan Officers, Mortgage Loan Officers, and Entry Level Loan Officers
A Fair Labor Standards Act collective and Rule 23 class action lawsuit was filed on February 5, 2018 in United States District Court, District of Kansas, Kansas City Division, against Kansas-based Mortgage Lenders of America, L.L.C. for allegedly misclassifying workers, failing to pay minimum wage for hours worked, and failing to pay overtime for all hours worked over 40 per week.
The lawsuit’s Team Lead collective class consists of Mortgage Lenders of America Team Leads, Team Leaders, and others with similar job titles, in the United States within the past three years who were misclassified as exempt employees and denied overtime compensation for hours worked beyond 40 per work week.
The lawsuit’s Loan Officer collective class consists of Mortgage Lenders of America Loan Officers, Mortgage Loan Officers, Entry Level Loan Officers, and others with similar job titles who originated loan products, in the United States at any time during the last three years who were classified as non-exempt, hourly employees who worked more than 40 hours per week without payment for all minimum wage and/or overtime compensation.
The members of the lawsuit’s Loan Officer Rule 23 class consists of individuals employed by Mortgage Lenders of America as Loan Officers, Mortgage Loan Officers, Entry Level Loan Officers, and other mortgage origination employees with similar job titles within the past three years in the State of Kansas who were denied minimum wage and/or overtime compensation.
According to the complaint:
[Mortgage Lenders of America’s] policy and practice is to deny earned wages including minimum wage and/or overtime pay to its Loan Officers. In particular, [Mortgage Lenders of America] requires these employees to perform work in excess of forty (40) hours per week but fails to pay them minimum wages and/or overtime for all hours worked.
[Mortgage Lenders of America’s] deliberate illegal treatment of its Team Leads and Loan Officers, which denies them minimum wage and/or overtime compensation results in MLOA willfully violating the [Fair Labor Standards Act].
Mortgage Lenders of America Loan Officers and Team Leaders
If you served as a Team Lead, Team Leader, Loan Officer, Mortgage Loan Officer, Entry Level Loan Officer, or held a similar position, and feel you were improperly denied overtime as required by federal and state wage laws, please contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], complete the form above on the right or e-mail [email protected], to discuss your potential legal rights or claims.
