Marketers Banned from Debt Relief Business, to Pay US$500,000
21 January 2011
The US Federal Trade Commission (FTC) has announced that The Hermosa Group, Financial Future Network, Media Innovations and their owner Jonathan Greenberg have been banned from the debt relief business for allegedly claiming that they could “help consumers quickly eliminate their credit card debts and stop calls from debt collectors”. The alleged advertisement was solely targeted at generating sales which were then sold to debt relief providers and other sales lead generators. The FTC alleges that the defendants’ claims were false as there was no evidence that they could achieve the promised result. The Settlement Order (19 January 2011) imposes a US$500,000 fine on the defendants, prohibits them from making false claims relating to financial products, and also prohibits them from disclosing customers’ personal information for their benefit.
FTC’s media release (20 January 2011)