In 2012, The Federal Trade Commission (FTC) reached a settlement with SBN Peripherals, Repo B.V. and Asia Pacific Telecom Inc., telemarketing companies that reportedly called millions of consumers illegally.
According to the FTC, the 2 companies made approximately 2.6 billion calls to consumers from January 2008 through August 2009 with prerecorded messages about lower interest rates or auto warranties that were about to expire. The calls lured thousands of consumers into buying expensive warranties that didn’t offer much protection or signing up for “worthless debt reduction services.”
The judgement, which was approved on March 22, 2012 bans Johan Hendrik Smit Duyzentkunst and Janneke Bakker-Smit Duyzentkunst, who operated the companies, from operating in the telemarketing industry. The settlement also includes a $5.3 million fine.
SBN used phone numbers registered to Asia Pacific Telecom Inc., with addresses in the Northern Mariana Islands, Hong Kong and the Netherlands, according to the FTC.
At least seven companies used Los Angeles-based SBN Peripherals’ dialing service to sell their products. One company, Miami-based Dolce Group Worldwide LLC, allegedly made nearly $4 million selling service contracts for automobiles, the FTC alleged in a separate suit filed in federal court in Miami. The FTC also alleged that more than $6 million over a two-year period was transferred from SBN to a Repo bank account in the Netherlands.
According to the FTC, Consumers would get a call with a message falsely claiming to represent their car manufacturer and have urgent information about their auto warranty. The recorded messages asked consumers to press “1” to receive more information. Consumers were then transferred to live telemarketers who, according to the FTC, sold “inferior” extended auto service contracts, priced between $1,300 to $2,485.
In regards to the credit calls, consumers were told in prerecorded calls that there was urgent information concerning their credit cards and then transferred to telemarketers who “induced” them to pay advance fees ranging from $500 to $2,000 “for worthless interest rate reduction services,” the FTC said.
Harassing telemarketing calls are also prohibited by the Telephone Consumer Protection Act, (TCPA). if a telemarketer or debt collector is found to be in violation of either, you may be entitled to compensation. Please give my office, The Law Offices of Paul Mankin a call at (877) 449-8898 for a free case evaluation.
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