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On July 29, the Federal Trade Commission (“FTC”) announced a settlement with First American Payment Systems LP, a Texas-based nationwide payment processor, and two of its sales agent affiliates, Think Point Financial LLC and Eliot Management Group LLC (collectively, “First American”), in an action alleging hidden terms, “surprise” exit fees, and charges made to merchants without their consent. … Continue Reading

In its second lawsuit filed under Acting Director Uejio, the CFPB alleges that BrightSpeed Solutions, Inc. and its founder and former chief executive officer violated the Consumer Financial Protection Act and the Telemarketing Sales Rule by processing payments for companies engaged in internet-based technical-support fraud.  The lawsuit serves as a reminder of the risks to payment processors of failing to implement adequate policies and procedures designed to avoid establishing or maintaining relationships with disreputable merchants.… Continue Reading

A payment processor and its individual owner have entered into a settlement with the FTC to settle charges that they violated a 2009 federal district court order that required them to review and monitor their merchant clients to ensure that the merchants were not engaged in deceptive or unfair practices.  The order is a stark reminder of the risks to payment processors of failing to implement adequate policies and procedures designed to avoid establishing or maintaining relationships with disreputable merchants.… Continue Reading

Yesterday, the CFPB announced that it had filed a lawsuit against “the ringleaders of a robo-call phantom debt collection operation, their companies, and their service providers.”  This is the same lawsuit filed in federal district court in Atlanta that we blogged about on Monday, and as we indicated, the service providers named as defendants included payment processors that processed credit card and debit transactions for the debt collectors. … Continue Reading

In the latest chapter of its “comprehensive effort to prevent consumer harm in the debt-settlement industry,” the CFPB has announced the settlement of an enforcement action brought against “a leading debt-settlement payment processor” and its CEO and owner.  In its complaint, the CFPB alleged that the defendants had violated the Telemarketing Sales Rule by assisting and facilitating the charging of unlawful advance fees by debt-relief companies. … Continue Reading