FTC Rule Bans Upfront Fees on Some Debt Relief Services

A new telemarketing sales rule prohibits for-profit companies that sell debt relief services over the telephone from charging an upfront free, according to the Federal Trade Commission. Starting Oct. 27, these companies must settle or reduce a customers’ credit card or other unsecured debit before collecting a fee.

‘Deceptive’ Marketers Banned from Mortgage Fix Services: FTC

In three separate actions, the Federal Trade Commission said today it has settled with marketers who sold mortgage modification or foreclosure rescue services, but did not deliver what they promised after charging thousands in upfront fees.

FTC Warns 18 Websites of ‘Free Credit Reports’ Rule

The Federal Trade Commission has sent “warning letters” to 18 websites that claim to offer free credit reports, alerting the owners that they must comply with a new disclosure law. The FTC’s amended Free Credit Reports Rule took effect April 2 and requires disclosing the website where consumers are entitled to one free credit report from each of the three credit bureaus: AnnualCreditReport.com.

Twitter Settles FTC Charges of Failing to Secure User Data

Micro-blogging giant Twitter has agreed to settle charges by the Federal Trade Commission that it failed to safeguard the personal information of its users. It is the first case the FTC has brought against a social networking site.

Crackdown on Mortgage Fraud, Relief Scams Yields 485 Arrests

A federal task force targeting mortgage fraud and foreclosure-rescue scams today released their tally since March 1: 485 arrests, 191 civil enforcement actions and the recovery of more than $147 million. Operation Stolen Dreams targets fraudsters taking advantage of many desperate homeowners hoping to avoid foreclosure through bogus mortgage relief programs, federal officials said.

FTC Teaser Site ‘Guarantees’ Loans – Like Upfront Fee Scams

The Federal Trade Commission wants to drive home the impact of a well-crafted and marketed website that “guarantees” a loan – just like your typical advance-fee scam sites. So it created its own “teaser” site to make a point: Scammers cleverly can masquerade as lenders.

FTC Settles with N.Y. Pre-paid Calling Card Firm on ‘False Claims’

The Federal Trade Commission has settled with a third pre-paid calling card company in an ongoing crackdown, bringing to $4 million the total amount such firms have paid in response to charges of making false claims and not properly disclosing “maintenance” and other fees. The newest settlement stems from the FTC’s July 2009 complaint against New York-based Diamond Phone Card.

Foreclosure Rescue Scams: Don’t be Taken by Phony Audits

The Federal Trade Commission calls it the latest twist in increasing foreclosure prevention scams: forensic auditors backed by attorneys who claim they can find laws your lender violated to get you off the hook.
“The ‘auditors’ say you can use the audit report to avoid foreclosure, accelerate the loan modification process, reduce your loan principal, or even cancel your loan,” the FTC said.

Social Media ‘Explosion’ Spurs Children’s Privacy Review

The “rapid-fire” pace of mobile technology and the “explosion” in social media has warranted a review of an existing federal rule protecting children’s online privacy to make sure it is adequate, the Federal Trade Commission told a Senate panel today. Congress passed the Children’s Online Privacy Protection Act (COPPA) in 1998, directed at the unique privacy and safety risks associated with children under 13 accessing the Internet. The FTC’s COPPA rule took effect in 2000.

Facebook Beware: FTC’s New Focus is on Consumer Data Privacy

Even before a group of U.S. senators asked the Federal Trade Commission to look into Facebook’s new sharing platform with third-party sites, the agency had declared that data security and privacy have become a central focus of the agency’s consumer protection mission. FTC’s Acting Chief Privacy Officer Kellie Cosgrove Riley even held a one-day boot camp for federal officials on top legal privacy issues.

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