- The Federal Trade Commission (“FTC”) reached a settlement with a group of 11 entities and three related individuals, jointly doing business as CSG Solutions and Second Choice Horizon LLC (collectively “CSG”), to resolve allegations that it used deceptive robocalls promising reduced credit card interest rates to defraud consumers in violation of the FTC Act and the Telemarketing Sales Rule.
- The FTC’s complaint alleged that, among other things, CSG targeted consumers with telemarketing cold calls and robocalls and falsely promised to permanently and substantially reduce the consumer’s credit card interest rates in exchange for upfront fees. CSG also allegedly called consumers who were on the National Do Not Call Registry and used personal information fraudulently obtained from consumers to apply for credit cards without their knowledge or consent.
- Under the terms of the stipulated order, CSG is subject to a $13.88 million judgment, which will be partially suspended based on inability to pay, and will be permanently banned from selling debt-relief products and services, and from any telemarketing, among other things.