FTC Sues Payment Processor for Assisting Credit Card Debt Relief Scam

June 5, 2013
Imperial Valley News  

In its ongoing crackdown on payment processors that ignore fraud, the Federal Trade Commission (FTC) is suing Independent Resources Network Corp. (IRN). It alleges that the company assisted and facilitated a telemarketing scam that falsely promised to lower credit card interest. The FTC accused IRN of knowing, or consciously avoiding knowledge of, key facts about a telemarketing scam operated by Innovative Wealth Builders Inc. (IWB) and continuing to profit from processing IWB’s credit card transactions anyway. One indicator of illegal conduct that IRN allegedly ignored was a high rate of "chargebacks," which occur when a consumer disputes a charge to a credit card and the charge is reversed. The average chargeback rate in the United States is below 1 percent, but IWB’s chargeback rate averaged above 20 percent for several years.
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