WASHINGTON—The FTC has banned an auto loan relief scammer from telemarketing and debt relief services.
Regency Financial Services, Inc., and its CEO Ivan Levy, have agreed to a permanent ban on telemarketing and the advertising, marketing, or sale of any debt relief products or services to settle FTC charges that they falsely promised consumers auto loan modifications and refunds if they failed to obtain the loan reductions, the FTC explained.
In its complaint, the FTC alleged that Regency and Levy violated the FTC Act and Telemarketing Sales Rule by promising consumers services to stop the repossession of their vehicles, and to obtain lower interest rates and monthly auto loan payments for an upfront fee of $499. The FTC’s complaint also alleged the company failed to honor its “money-back guarantee.”
In addition to the bans on telemarketing and debt relief services, the defendants also agreed to a judgment of $330,000 to redress the victims of their scheme. The settlement order also prohibits defendants from misrepresenting the terms or rates that are available for any loan or extension of credit, and the ability to improve a consumers’ credit rating.