"Card Member Services" Robocalls: How the FTC and Florida Closed the Book on Payless Solutions

The bottom line: the FTC pursued every company and individual in the network, and most received lifetime bans from robocalling, telemarketing and debt relief.

Here is what happened

According to the complaint, the defendants:

• Placed robocalls, many to seniors, that claimed to be from "credit card services" and "card member services."
• Claimed their program would save consumers at least $2,500 in a short time and help them pay off debt faster.
• Charged between $300 and $4,999 up front, sometimes without the consumer's consent.
• Delivered nothing of value. Some consumers received an unrequested package of financial education materials. In other cases, the defendants used consumers' personal information to apply for new credit cards without their knowledge or consent.
• Called many numbers on the National Do Not Call Registry.

The complaint charged violations of the Telemarketing Sales Rule (TSR) and Florida's Telemarketing and Consumer Fraud and Abuse Act. On the day the complaint was filed, June 22, 2015, the court froze the defendants' assets and appointed a temporary receiver. Read the FTC and Florida complaint against Payless Solutions.

How the case was resolved

• October 2015: An amended complaint added five more individual and corporate defendants.
• May 2016: Six stipulated orders settled the charges against several individual defendants and their companies.
• October 2016: A seventh stipulated order resolved the charges against Fariborz Fard, Shirin Imani and Global Marketing Enterprises, Inc.
• May 2017: The court entered a default judgment against Christian Serna, All Us Marketing LLC and GRR Financial Services, LLC.

With one exception, each order permanently bans the defendants from robocalling, telemarketing and providing debt relief services. The exception, an order against Kimberly Coarse, Auto Guardian USA, LLC and Premier Marketing International, LLC, bans telemarketing and debt relief, but not robocalling, since those defendants were not alleged to have robocalled.

The judgments against the 12 defendants alleged to be primarily responsible were $4,890,797, the full amount of consumer harm, suspended in whole or part for inability to pay. Default judgments were $389,915 against Christian Serna and GRR Financial and $640,747 against All Us Marketing.

In May 2019, the FTC mailed 305 checks totaling $314,945, full refunds averaging more than $1,000 each.

Why it matters

The "card member services" robocall is one of the most recognizable scams in telemarketing. The case shows that the TSR's ban on advance fees for debt relief, together with its robocall and Do Not Call rules, gives regulators several independent grounds to act.

What this means for you

1. Never collect a fee for debt relief before delivering results.
2. Never use a caller name that suggests you are the consumer's card issuer.
3. Never apply for credit in a consumer's name without express consent.
4. Prerecorded sales calls require prior express written consent.