FTC Sends Refund Checks for ‘Rachel from Cardholder Services’ Scheme

Getty Images(NEW YORK) — The Federal Trade Commission announced on Friday it is mailing nearly 17,000 refund checks totaling more than $700,000 to consumers who lost money to the “Rachel from Cardholder Services” scheme.

In one pitch, the recording to consumers promised to reduce credit card interest rates for an up-front fee, when in fact the service did little.  

The Federal Trade Commission previously called “Rachel from Cardholder Services” scheme “public enemy number one.”

Affected consumers are getting a refund of $43 each. The refund checks were mailed out on Friday.

The refunds are being made from funds collected through a November 2013 settlement with Emory L. “Jack” Holley IV, Lisa Miller, and the six corporate defendants they controlled.

Pre-recorded telemarketing robocalls became illegal in 2009, but refunds are only issued for fraud.

The Federal Trade Commission can’t reimburse customers for annoyance.

Follow @ABCNewsRadio
Copyright © 2015, ABC Radio. All rights reserved.