A Thing
The Green SheetGreen Sheet

Tuesday, September 6, 2011

FTC redresses consumers for prepaid debit card scheme

The Federal Trade Commission is returning approximately $1.9 million to consumers who apparently were tricked into buying prepaid debit cards when they filled out payday loan applications online. In the scheme, payday loan applicants unknowingly were charged up to $54.95 per application for unrelated prepaid debit cards with zero balances, the FTC said.

The FTC alleges that Palo Alto, Calif.-based payday loan marketer Swish Marketing Inc. worked with San Clemente, Calif.-based debit card provider VirtualWorks LLC to design the payday loan application form that, when filled out on various websites, duped applicants into signing up for Visa Inc. and MasterCard Worldwide-branded prepaid debit cards. The FTC settled with the companies in August 2009.

The FTC is mailing over 110,000 refund checks to affected consumers. The average check is in the amount of between $10 to $15. end of article

The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

Facebook
Twitter
LinkedIn
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
A Thing