FTC Advises Consumers to Keep Eye Out for Unauthorized Credit Charges
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BananaStock/Thinkstock(WASHINGTON) — The Federal Trade Commission is warning consumers of a new type of “cramming,” unauthorized fees that were once buried in phone bills but are now showing up on credit card statements.
According to an FTC complaint, Ideal Financial Solutions hit tens of thousands of Americans with fake fees mostly for vague financial services like Debt2Wealth — for close to $30 at a time.
In total, the complaint says the company billed consumers for more than $24 million without their consent.
“It’s smart to steal little amounts at a time because you are hoping consumers just don’t spot it,” said Mandy Walker, a Consumer Reports senior project editor.
The FTC says 20 million people a year fall victim to cramming, which until now had occurred mostly in phone bills.
In this most recent case, the FTC said that many of the consumers targeted had recently applied for a payday loan or cash advance.
When they reportedly spotted the bogus charges on their bills, they called the toll-free number next to fees to complain. The FTC said consumers then entered an infuriating maze of call centers around the world.
Walker suggested consumers inspect their bills line by line and dispute any questionable charges immediately with the credit card company.
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