Attorney General Moody and FTC Stop Telemarketing Scam Targeting Credit Card Holders

Attorney General Ashley Moody Press Release

Attorney General Moody and FTC Stop Telemarketing Scam Targeting Credit Card Holders

TALLAHASSEE, Fla. — Attorney General Ashley Moody and the Federal Trade Commission have obtained court orders permanently barring operators of an alleged credit card interest rate reduction scam from working in the debt relief. The defendants – Gino de Paz, Grace de Paz and Shabana Khublal – allegedly engaged in abusive and deceptive practices in violation of the FTC Act, the Telemarketing Sales Rule and the Florida Deceptive and Unfair Trade Practices Act by selling interest rate discounts on credit cards. consumer services across the United States, including Florida seniors.
Attorney General Ashley Moody said: “These scam artists lured the victims – financially distressed consumers, as well as the elderly – into enrolling in their debt relief program. Instead of receiving the promised help, the victims turned more in debt while the defendants made millions.Now, together with the FTC, we have stopped the defendants from bombarding consumers in Florida with deceptive telemarketing calls promising financial help, and they will be forced to pay.
FTC Consumer Protection Bureau Director Samuel Levine said: “The defendants in this case were taking advantage of Americans facing mounting debt by falsely promising to permanently cut their credit card interest rates. The FTC is proud to partner with the Florida Attorney General to put an end to these scams.
In one complaint filed in July 2020, Attorney General Moody’s office and the FTC accused the de Pazes, Khublal and other defendants of lambasting consumers with telemarketing calls promising to permanently and substantially reduce interest rates credit cards. After posing as representatives or affiliates of consumer credit card companies, the defendants allegedly claimed they could save consumers thousands of dollars in credit card interest, allowing them to pay off much faster.
According to the complaint, all of the allegations were either false or unsubstantiated. At most, defendants sometimes opened new credit card accounts at lower introductory rates and transferred existing consumer debt to the new cards. Instead of producing the savings customers expected, defendants’ service would often have left people even more indebted after paying upfront fees between $995 and $4,995, as well as substantial fees to transfer existing debts to new ones. cards.
Under the terms of the agreements, the defendants are permanently prohibited from advertising or selling debt relief products and services. Defendants are also prohibited from misrepresenting material facts in connection with any product or service. The orders also prohibit unsubstantiated claims and prohibited payment practices.
The orders impose monetary judgments of more than $5.3 million. In addition to reaching settlements with the individual defendants, the court also entered default judgments against the other defendants in the case: GDP Network LLC; G & G Success LLC, also doing business as YF Solution LLC; and G&N Squared LLC.

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