FTC Issues Marketing Ban, Penalty against Auto Loan Relief Scammer
Regency Financial Services, Inc., has agreed to a telemarketing ban and to cease the advertising, marketing, or sale of any of its debt relief products or services following federal charges that they company was falsely promising auto loan modifications and refunds to consumers.
In its complaint, the Federal Trade Commission (FTC) alleged that Regency and CEO Ivan Levy violated the FTC Act and Telemarketing Sales Rule by promising consumers that for an upfront fee of about $500, the company could stop the repossession of their vehicles, and obtain lower interest rates and monthly auto loan payments.
The FTC's complaint also alleged the company failed to honor its money-back guarantee.
In addition to the marketing bans, Regency will pay $330,000 to compensate victims of their scheme. The settlement order also prohibits defendants from misrepresenting the terms or rates that are available for any loan or extension of credit, and the ability to improve a consumers' credit rating.
This case is a part of Operation Ruse Control, a nationwide sweep by law enforcement targeting deceptive auto marketing practices to protect consumers when buying or leasing an automobile. The FTC encourages consumers to report fraudulent, deceptive, or unfair business practices. To file a complaint, call (877) FTC-HELP.