The FTC recently expanded its case against Treasure Your Success, adding eight defendants to the case brought against the firm last year over alleged robocalls and deceptive practices.
According to the FTC complaint, TYS made “cardholder services” robocalls that promised to lower consumers’ credit card rates in exchange for an up-front fee, which ranged as high as $1,594.
The FTC added Newtek Merchant Solutions and its former president Derek Depuydt to the complaint, alleging that the company approved TYS for a merchant account without reviewing its practices, despite TYS’ high charge-back rates—a key indicator of fraudulent activity. Newtek continued to process TYS’ credit card transactions even after learning of the company’s high charge-back rate.
Additionally, the FTC filed several new charges against the defendants, including falsely promising not to charge a fee until the customer had received the promised savings; making false representations about the company’s services; charging an advance fee for debt relief services; making unlawful prerecorded messages; violating the Do Not Call Rule; billing without authorization; violating the Telemarketing Sales Rule; and assisting and facilitating deceptive telemarketing acts and practices.
Aside from Newtek and Depuydt, the defendants named in the case include WV Universal Management; Global Financial Assist; Leading Production; Willy Plancher; Valbona Toska, a.k.a. Val Jones; HES Merchant Services Co.; Business First Solutions; VoiceOnyx Corp.; Hal E. Smith, a.k.a. H.E. Smith, Harold E. Smith and Howell E. Smith; Jonathon E. Warren; and Ramon Sanchez-Ortega.