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The Federal Trade Commission (FTC) has initiated the distribution of more than $5 million in refunds to consumers who fell victim to a fraudulent credit card debt relief scheme.
According to the FTC, the funds were recovered from ACRO Services, the entity behind the deceptive operation, and BlueSnap, a payment processor that profited from the scheme. ACRO Services operated under various aliases, including American Consumer Rights Organization, Consumer Protection Resources, Reliance Solutions, Thacker & Associates, and Tri Star Consumer Group.
The FTC’s complaint revealed that ACRO Services ran a telemarketing scam that misled consumers with false promises of debt relief. Victims were charged illegal upfront enrollment fees and ongoing monthly fees for “credit monitoring” services that provided no real benefit.
As part of a settlement, individual defendants associated with ACRO Services agreed to a permanent ban from the debt relief and telemarketing industries. They also surrendered assets, which the FTC is now using to compensate affected consumers.
BlueSnap, along with its former CEO Ralph Dangelmaier and former Senior Vice President Terry Monteith, reached a settlement requiring a $10 million payment. The settlement also prohibited the company from processing payments for debt collection or relief businesses, as well as companies flagged in fraud monitoring programs.
Henry Helgeson, BlueSnap’s current CEO, expressed regret over the actions of former executives in a statement, pledging full compliance with FTC directives. He emphasized that the company had tools to detect fraudulent activities but acknowledged these tools were overlooked by the individuals charged.
In the latest round of refunds, the FTC announced it is sending checks to 7,687 consumers impacted by the scheme.
This announcement follows other enforcement actions by the FTC, including a December court order to shut down Superior Service, a company involved in student debt relief scams.
The FTC’s efforts in 2023 alone led to over $324 million in refunds to consumers, underscoring the regulator’s commitment to combating fraudulent practices and protecting consumers.
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