FTC Busts Interest Rate Reduction Scams

CHICAGO (CN) - The FTC says six abusive telemarketing firms conned U.S. and Canadian victims out of thousands of dollars by claiming they could reduce interest rates on credit cards and help them pay off debts faster. The agency says the scammers charged as much as $1,995 up front but failed to deliver and refused to pay refunds.

The scammer targeted consumers through robocalling and Web sites, the FTC says. They falsely promised that they could arrange interest rates as low as 4 to 7 percent, that they could consumers thousands of dollars in a short time, and help them pay off debts "three to five times faster."

And they falsely promised full refunds if they failed to do what they offered or if their victims canceled within 30 days, the FTC says.

The defendants are Dynamic Financial Resolutions (of Toronto), The Dynamic Financial Group (of Delaware and Totowa, N.J.), R&H Marketing Concepts (of Tampa, Fla.), Alpha Financial Debt Group (of Totowa, N.J.), American Freedom Advisors (of Totowa), Thriller Marketing adba Easy Financial Solutions (of Tampa) and eight executives. All do business throughout the United States.

The FTC claims the extent of the defendants' services was sending consumers forms for credit card account information and making three-way calls to credit card companies. The defendants asked for an interest rate reduction, which credit card companies typically declined.

The defendants also offered their victims new credit cards with low introductory rates and told them to transfer high-interest balances to the new cards, but did not promise permanent rates any lower than consumers' old cards, the FTC says.

The FTC says the defendants repeatedly called numbers on the Do Not Call Registry and made "spoof" calls using phony caller ID information.

The FTC wants assets frozen, restitution and an injunction.

Individual defendants include Joseph G. Rogister, Sean Rogister, Phinil N. Constantinidis, Michael Falcone, Frank Proporino Jr., Christopher M Hayden, Dwayne J. Martins, and John L. Franks Jr.

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