The Federal Trade Commission has filed a complaint against a scheme calling itself “America’s Premier Debt Consolidation Company” for violating the FTC Act and the FTC’s “Telemarketing Sales Rule”.

According to the complaint,the defendants have violated the FTC Act and the TSR by falsely claiming that they are a nonprofit entity; that the only cost for their services is a monthly administrative fee that is less than $49 and/or that there is no application fee; that their services will result in estimated savings of a specified amount, typically several thousand dollars; and that their services will reduce the consumer’s monthly payment or total debt, or will improve their credit rating. In fact, the complaint states, in addition to a monthly administrative fee, the defendants charge a fee equal to the monthly payment, which is collected from the consumer’s first payment; they overstate the estimated savings, if any; their services do not necessarily reduce the consumer’s monthly payment or total debt; and they do not provide any service to improve, or prevent deterioration of, a customer’s credit record, history, or rating.

The defendants used recorded messages delivered to answering machines stating “We are a nonprofit agency that can consolidate your credit cards, lower your monthly payments dramatically, and reduce your interest rates down to as low as 1.5 percent.”

The defendants also use mail and Web sites (www.expressconsolidation.org and www.expressconsolidation.com) to get consumers to contact them, the complaint alleges.

The defendants are attorney Randall L. Leshin, P.A., d/b/a Express Consolidation, Express Consolidation Inc., and Consumer Credit Consolidation Inc. and its president, Maureen A. Gaviola. The Commission vote to authorize staff to file the complaint was 5-0. The complaint was filed in the U.S. District Court for the Southern District of Florida.