FTC and Ohio Secure TRO Against Companies Concerning Alleged Telemarketing Scheme

On July 17, 2019, Ohio Attorney General Dave Yost (Ohio AG) announced that it and the FTC had secured a temporary restraining order from the United States District Court for the Western District of Texas against two companies that allegedly defrauded consumers struggling with credit card debt out of millions of dollars.

The complaint alleged that the defendants placed millions of robocalls to consumers offering to help consolidate and reduce credit card debt, when in reality the companies provided no such services, in violation of Section 5(a) of the Federal Trade Commission Act (“FTC Act”), 15 U.S.C. § 45(a).  The defendants also allegedly used remotely created checks, or “RCPOs” to withdraw money directly from consumers’ bank accounts–a practice prohibited by the FTC’s Telemarketing Sales Rule, 16 C.F.R. Part 310.

The temporary restraining order prohibits the companies from operating and freezes their assets.

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