FTC: Central Florida Company Deceived Consumers With Credit Card Interest Rate Scam

On February 28th, 2022, the Federal Trade Commission (FTC) announced official enforcement against a Central Florida company and its owners and operators. According to the FTC, the company unlawfully targeted and deceived people looking to reduce the interest rate on their credit cards. In this blog post, our West Palm Beach deceptive & unfair trade practices lawyers provide an overview of the allegations from the FTC and explain your rights as a consumer under the FDUTPA.

Allegations: Central Florida Company Unlawfully Targeted, Defrauded Individuals 

In July of 2020, the FTC took enforcement action against three individuals: Gino de Paz, Grace de Paz, and Shabana Khublal. These individuals owned and operated an Orlando-based company called GDP Network LLC. They also controlled two related entities, G & N Squared LLC and G&G Success LLC. The FTC contends that these companies were used to defraud consumers in Florida and in other jurisdictions.

According to the FTC, the deception scheme involved the use of aggressive telemarketing tactics. They intentionally sought out consumers who were struggling with major debt problems and high credit card interest rates. From there, they promised major savings through a reduction in interest rate—but only after the payment of a heavy upfront fee, sometimes as high as $4,995. In reality, they were unable to provide people with the promised savings and just left them deeper in debt.

The FTC has charged the named individuals and their companies with violations of the federal FTC Act and the Florida Deceptive and Unfair Trade Practices Act (FDUTPA). Among other things, all individuals have now been permanently barred from marketing or selling and debt relief/debt reduction related products in the United States.  

Know Your Rights: Consumers and Businesses Can File an FDUTPA Lawsuit for Compensation

Are you a consumer in Florida who suffered financial losses because of a deceptive, misleading, unfair, or otherwise fraudulent commercial practice? You do not have to wait for the state or federal government to take action to protect your rights. In Florida, you can file a lawsuit directly against the responsible party. The FDUTPA is a state law that includes a so-called private right of action.

Any individual, organization, or business can file an FDUTPA lawsuit in Florida. Through this type of legal action, you have the right to hold a defendant—legitimate business or otherwise—legally responsible for any losses caused by a deceptive or unfair commercial practice, including material misrepresentations and other misleading conduct.

Consult With Our Florida FDUTPA Attorneys Today

At Pike & Lustig, LLP, we are committed to providing the highest level of legal representation to clients. Whether you are an individual consumer or you run a business, we can help you navigate a deceptive and unfair commercial practices claim. Give us a call right away to arrange a completely confidential assessment of your case. Our law firm provides FDUTPA representation in West Palm Beach, Palm Beach Gardens, Miami, Fort Lauderdale, and throughout all of Southeastern Florida.

Resource:

ftc.gov/news-events/news/press-releases/2022/02/operators-credit-card-interest-rate-reduction-scam-permanently-banned-debt-relief-business-under