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FTC issues refund checks to consumers involved in Landmark Clearing case

160px-US-CFTC-Seal.svgThe FTC recently mailed out 9,566 refund checks totaling more than $577,000 to consumers whose bank accounts were allegedly debited without their consent by Texas-based Landmark Clearing.

The average refund amount totals approximately $60 and is based on the amount each consumer lost. Individuals who receive checks should cash them within 60 days of the mailing date.

The FTC’s case against Landmark is partly the work of the consumer protection working group of President Obama’s Financial Fraud Enforcement Task Force.

Using “remotely created payment orders,” a relatively new payment method that provides merchants access to consumer bank accounts, Landmark allegedly charged consumers who had never heard of the company or its clients, some of which included online discount shopping clubs and payday loan sites.

Under the FTC settlement, the company was banned in January from offering RCPOs and, as part of the settlement, Landmark and two other defendants in the case agreed to a $1.5 million judgment that will be suspended upon payment of $126,000 and the surrender of a parcel of land.

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