VA Joins FTC in Pursuing Credit Card Insurance Fraud

October 22, 2001

Virginia has joined in a suit by the Federal Trade Commission aimed at stopping fraudulent marketing practices related to the sales of insurance policies covering the theft or misuse of credit cards.

According to the FTC Americans may be paying as much as $40 billion as a result of false and misleading misrepresentations, often aimed at the elderly, by telemarketers, who use scare tactics and other unethical sales pitches to persuade consumers to purchase insurance, often costing hundreds of dollars, to cover their credit cards.

The suit alleges numerous violations of FTC rules governing telemarketing by American Card Services and seven other companies. Consumers are urged to instruct telemarketers who make unwelcome calls to remove their names from their lists. FTC rules require that they do so.

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