FTC Sends Refunds to Consumers Harmed by “Credit Card” Scam

The Federal Trade Commission is mailing 38,631 refund checks to consumers who lost money to a catalog credit card operation that deceptively marketed its card, failed to honor its refund policy, and charged up-front fees for a guaranteed line of credit. The Low Pay, Inc. scam sent mailers to consumers with credit problems, claiming they could “build” their credit by using a “Pre-Approved” “Platinum-level” credit card with a “GUARANTEED” $7,500 credit line and a cash advance benefit.

More than $518,000 is being returned to consumers. Those who receive the checks from the FTC’s refund administrator should cash them within 60 days of the mailing date.  The FTC never requires consumers to pay money or to provide information before refund checks can be cashed. Those with questions should call the refund administrator, BMC Group, at 1-855-529-6826, or visit www.FTC.gov/refunds for more general information.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them.  To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics.  Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

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