Chicago Business Litigation Lawyer Blog
The FTC and the State of Ohio sued a third party payment processor that engaged in processing payments for third party merchants engaged in deceptive practices and consumer fraud, as well as telemarketers in violation of the FTC Act, the TSR, and the Ohio CSPA.
The Federal Trade Commission and the State of Ohio filed a complaint seeking a permanent injunction and other equitable relief against Madera Merchant Services and B&P Enterprises. The United States District Court for the Western District of Texas issued a temporary restraining order, asset freeze, and other equitable relief, as well as an order to show cause why a permanent injunction should not be issued.
Madera Merchant Services and B&P Enterprises operate a third-party processing scheme that uses remotely created payment orders or remotely created checks to withdraw money from consumers’ accounts on behalf of third-party merchants. Madera and B&P routinely withdrew funds from consumers for merchants that were engaged in fraud or deceptive marketing. The district court stated that the defendants also routinely provided payment processing services to telemarketers in violation of the TSR, which expressly prohibits collecting payments in connection with telemarketing sales. Continue reading ›