In its seventh action in the past three months, the FTC asked a U.S. district court to shut down Innovative Wealth Builders, which is alleged to have been operating a deceptive credit card rate reduction program.
IWB allegedly cold-called consumers who had credit card debt and claimed that the company could help them reduce interest rates on credit cards, save them thousands of dollars and help pay off debts faster. IWB charged between $500 and $2,000 for the services with the promise that a full refund would occur if the company did not follow through.
The FTC alleges that IWB did not reduce consumers’ interest rates but instead sent consumers a “financial plan,” which included only a comparison between the total amount consumers would pay if they stuck to making minimum payments and the total amount consumers would pay if they paid more than the monthly minimum. IWB is also alleged to have posted unauthorized charges to consumer credit card accounts.
Additionally, the FTC complaint said that the defendants, who also include IWB owners Carly Janene Pelland, Tamara Dawn Johnson and Sheryl Leigh Lopez, violated the FTC Act in their misrepresentation of credit card rate reduction services, misrepresentation of its refund policy and unauthorized billing.