Payment Processor and Owner Agree to Permanent Payment Processing Ban and $1.8 Million Judgment to Settle FTC Charges They Violated 2009 Order

Thomas Wells and his payment processing company, Priority Payout Corp., have agreed to settle FTC charges that they repeatedly violated a 2009 court order issued against them. The settlement permanently bans Wells and Priority Payout Corp. from engaging in, and assisting others with, payment processing, and includes a $1.8 million contempt judgment against them. The […]

FTC Charges Prepaid Card Company Deceptively Marketed Reloadable Debit Card

The Federal Trade Commission has charged that in numerous instances, prepaid card company NetSpend Corporation deceived consumers, many of whom do not have bank accounts, about access to funds deposited on defendants’ debit cards. According to the FTC’s complaint, NetSpend tells consumers that its reloadable prepaid debit cards offer an alternative way to store and […]

Payment Processors Involved in I Works Scheme Settle FTC Charges

CardFlex Inc., an Independent Sales Organization (ISO), and its principals Andrew Phillips and John Blaugrund, have settled Federal Trade Commission charges that they illegally processed more than $26 million in unauthorized consumer charges on behalf of a company called I Works. The defendants are the last of seven individual and corporate defendants named in the […]

FTC Sends Refunds to Consumers Victimized by Automated Electronic Checking Inc.

Thousands of consumers scammed out of their money will get some of it back, thanks to a lawsuit and settlement secured by the Federal Trade Commission.  The FTC  is mailing 34,859 refund checks to consumers whose bank accounts were debited, allegedly without their consent, by Nevada-based payment processor Automated Electronic Checking Inc. (AEC). The average […]

FTC Sends Refunds to Consumers Victimized by Landmark Clearing Inc.

Thousands of consumers scammed out of their money will get some of it back, thanks to a lawsuit and settlement secured by the Federal Trade Commission.  The FTC has mailed 9,566 refund checks to consumers whose bank accounts were debited, allegedly without their consent, by Texas-based payment processor Landmark Clearing Inc. – more than $577,000 […]

Defendants Banned from Payment Processing, Will Pay $950,000 in FTC Settlement

A payment processor and two of its principals are banned from processing electronic payments under a settlement with the Federal Trade Commission, which resolves charges that they debited, or tried to debit, millions of dollars from tens of thousands of consumers’ bank accounts without their consent.  The FTC’s action against Automated Electronic Checking Inc. (AEC) […]