A settlement reached in a telemarketing fraud lawsuit involving Integrated Credit Solutions (ICS) Inc. and Lighthouse Credit Foundation Inc., requires both Largo, FL-based firms to pay a combined $1.4 million in restitution to more than 7,000 consumers, $275,000 in civil penalties and $175,000 in investigation and prosecution costs.
Bill Lockyer, California attorney general, announced the settlement had been reached in Monterey County, CA Superior Court. “This excellent settlement holds them accountable for fraud, requires them to pay back their victims and ensure they do not victimize other consumers,” Lockyer said in a statement.
The court said ICS violated state and federal laws that prohibit dissemination of unsolicited pre-recorded outbound telemarketing messages, false advertising and unfair business practices.
Additionally, the court said Lighthouse violated state laws by charging excessive monthly fees, and by failing to comply with licensing, registration, bonding and financial reporting requirements for nonprofit credit counseling.
Consumers who received pre-recorded messages were told they had been approved by Lighthouse to consolidate credit card payments for an annual interest rate as low as 1.5%, but that they had to call a certain number. Consumers who responded were connected to ICS, which requested payment of a $38 upfront fee to be referred to Lighthouse. California has a $20 cap for monthly fees paid for debt consolidation.
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