FTC Whacks ‘Debt Reduction’ Operation

SEATTLE (CN) - The FTC says operators of a "rapid debt reduction" program scammed people in the U.S. and Canada by falsely claiming they could save consumers thousands of dollars and help them pay off their debts. Tacoma-based Mutual Consolidated Savings and United Savings Center targeted victims through "robocalling," the FTC says.

The FTC says the promised savings may "take decades to achieve" and customers who request a refund are hit with a 12.5 percent "restocking fee."

Telemarketers pitching the bogus program have made numerous calls to numbers on the Do Not Call Registry and provide false caller identification numbers to conceal their identity, the complaint states.

Defendant Paul Morris Thompson is CEO of the businesses, and defendant Miranda Cavendar is COO, the FTC says.

Their businesses include MCS Programs, Mutual Consolidated Savings, United Savings Center and USC Programs.

The FTC seeks freezing of assets, restitution and an injunction.

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