Credit Foundation of America has agreed to pay $926,754 to settle the Federal Trade Commissions charges that they broke the Do Not Call Rule. The CFA sold debt management services across the nation by calling consumers that were on the Do Not Call List. They left unsolicited messages on home telephones in attempts to gain business.
If, and when, a consumer responded to the call, they were told to enroll in a debt management program – regardless of their current situation. They would then charge them a large enrollment fee, which the consumer would pay to enroll in the program. The problem is that many of the candidates were not approved, and CFA kept their money.
Not only did they break the Do Not Call Rule, but they also scammed many customers out of money they could not afford to lose. The CFA tried claiming exemption from the Rule due to its tax-exempt status. The final judgement was as follows:
? CFA, TTT Marketing Services, Inc., Sure Guard Credit Corporation, Inc., Anthony P. Cara, Todd A. Rodriguez, and Walter F. Villaume agreed to pay $250,000 in civil penalties and $606,754 in consumer redress
? Credit Defenders of America, Inc. and its owner, Robert Brown, agreed to pay $70,000 in consumer redress.
? Credit Shelter of America, Inc. and its owner, Bryan E. Taylor, agreed to a judgment of $102,540, which has been suspended due to their inability to pay. It will be imposed if they are found to have misrepresented their financial condition. ■
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