Maybe it is bravery, or stupidity, but I refuse to let my fear of making a small error in the message stop me from getting the message out. There is so much to be said, or shared. So many people around the world need a voice and awareness about financial issues, concerns and problems.

I’m not saying I’m great because there are a lot of people that are smarter and lead lives that are more connected at the most high levels of commerce and government. I guess what I’m saying is that at least I try to do something each day to put one foot in front of the other to raise education and awareness about problems and issues. At the end of the day I’d rather go down fighting with a voice than simply suffer in silence.

I urge and invite you to get involved in issues involving consumer debt by commenting on my articles and blogs and to participate in the discussions that matter. Share something most valuable, your informed opinion. I care what you have to say and others do as well.

The complaint named the following as defendants, both individually and as corporate officers: Sean Somma aka Sean Soma, individually and as an officer of corporate defendants Centurion Financial Benefits LLC and 1629936 Ontario Ltd, also d/b/a Spectra Financial Benefits; Antonio Marchese aka Tony Marchese, individually and as an officer of corporate defendant 1644738 Ontario Ltd., also d/b/a Sureway Beneficial, Simple Choice Benefits, and Oxford Financial Benefits; Tony Andreopoulos, individually and as an officer of corporate defendants American Getaway Vacations Inc., Credence Travel Processing Inc., and Topstar Media Inc., also dba Integra Financial Benefits; and Dennis Andreopoulos, individually and as an officer of corporate defendants American Getaway Vacations Inc. and Topstar Media Inc., also d/b/a Integra Financial Benefits.

The complaint also charged Centurion Financial Benefits LLC; 1629936 Ontario Ltd., also dba Centurion Financial Benefits; 1644738 Ontario Ltd, d/b/a Integra Financial Benefits; American Getaway Vacations Inc., also d/b/a Integra Financial Benefits; Credence Travel Processing Inc., d/b/a Integra Financial Benefits; and Topstar Media Inc., also d/b/a Integra Financial Benefits. The FTC filed an amended complaint in December 2006, adding the following corporate and individual defendants to the case: 1648534 Ontario Ltd., d/b/a Sureway Beneficial; 1652242 Ontario Ltd., d/b/a Oxford Financial Alliance and Oxford Financial Benefits; 1656324 Ontario Ltd., d/b/a Simple Choice Financial Benefits; 1466827 Ontario Ltd., d/b/a ESI Employment Solutions, Inc.; 6347738 Canada Inc., d/b/a ESI Contact Inc.; 1571816 Ontario Ltd, d/b/a RNR Holdings and Vu Com Communications; Robert J. Houttuin; Frank Bellissimo; Catreena Alexandra Marchewka; and Sylvain Cholette.

Dennis Andreopoulos later was voluntarily dismissed as a defendant, and on May 9, 2007, the Commission announced a settlement with three defendants – Soma, Marchese, and Cholette. The court granted the FTC’s motion for partial summary judgment against defendant Andreopoulos on September 19, 2007. The final orders announced today resolve the FTC’s charges against Bellissimo, Andreopoulos, and Marchewka, the last of the Centurion defendants.

The Final Orders

The court orders announced today include final judgments and orders for permanent injunction against Bellissimo and Andreopoulos, and a stipulated order for permanent injunction and final judgment (settlement) against Marchewka. The orders bar Bellissimo, Andreopoulos, and Marchewka from: 1) making material misrepresentations about credit cards or any other program, product, or service; 2) violating the FTC’s Telemarketing Sales Rule, including its prohibition against charging an advance fee for a guaranteed credit card; and 3) selling their customer lists.

The orders also hold Bellissimo, Andreopoulos, and Marchewka jointly and severally liable for $9.89 million (the total amount of consumer injury associated with their scam). The orders against Bellissimo and Andreopoulos freeze their assets until they have satisfied this judgment. The monetary judgment against Marchewka has been suspended based on her inability to pay. It would become due, however, if it is later found that she misrepresented her financial condition to the Commission. The orders contain record keeping and monitoring provisions designed to ensure future compliance with the FTC Act and the orders.

The Commission voted 5-0 to approve the Marchewka settlement. The settlement and the final judgments against Andreopoulos and Bellissimo were entered in the U.S. District Court for the Northern District of Illinois, Eastern Division.

Law Enforcement Assistance & Criminal Charges in Canada

The FTC appreciates the assistance of several U.S. and Canadian law enforcement partners, including the Toronto Strategic Partnership, in conducting this investigation. In addition to the FTC, the Toronto Partnership is composed of the U.S. Postal Inspection Service, Canada’s Competition Bureau, the Toronto Police Service Fraud Squad’s Telemarketing Section, the Ontario Provincial Police Anti-Rackets Section, the Ontario Ministry of Government Services, the Royal Canadian Mounted Police, and the United Kingdom’s Office of Fair Trading.

The Alberta Partnership Against Cross-Border Fraud also assisted in the case. The Alberta Partnership consists of the FTC, Alberta Government Services, the Calgary Police Service, Canada’s Competition Bureau, the Edmonton Police Service, the Royal Canadian Mounted Police, and the U.S. Postal Inspection Service. The FTC alleged that part of the Centurion telemarketing took place in Calgary, Alberta.

Shortly after the Commission filed its complaint in 2005, Canadian authorities executed search warrants on the telemarketing boiler rooms in Toronto and Calgary and brought criminal charges against the principals. See: http://www.competitionbureau.gc.ca/internet/index.cfm?itemID=1949&lg=e and
http://www.gov.calgary.ab.ca/citybeat/public/2005/09/release.20050927_141328_9398_0. On June 18, 2007, Houttuin and Bellissimo pleaded guilty to criminal charges in Canada. They will be sentenced next month.

“Debt collectors who get complaints from consumers should not only take notice, but also take action,” said Lydia B. Parnes, Director of the FTC’s Bureau of Consumer Protection. “The message from this case is clear: Either comply with the law or face stiff penalties.”

According to an FTC complaint, in many instances, collectors for LTD Financial Services, L.P., which collects on about 1.25 million consumer accounts per year, violated the FTC Act and the Fair Debt Collection Practices Act by falsely threatening or implying that LTD would garnish consumers’ wages, seize or attach their property, or initiate lawsuits or criminal actions against them if they failed to pay.

LTD collectors, who collect in English and Spanish, allegedly called consumers at their place of work despite knowing it was inconvenient for them to receive calls there, and disclosed the existence of debts to family members, employers, co-workers, and neighbors. They also allegedly harassed consumers and used abusive tactics such as immediately calling back after consumers hung up on them, and sometimes used racial slurs and profanity. According to the complaint, in some instances, front-line supervisors and mid-level managers either participated or were aware of such practices under their supervision but failed to impose sufficient discipline.

Hundreds of consumer complaints against LTD are filed with the FTC, the Houston Better Business Bureau (BBB), various state attorneys general, and the company itself, the FTC’s complaint states, noting that LTD’s response to complaints “is cavalier at best,” that complaints from attorneys general and the BBB alleging egregious law violations frequently are dismissed without significant investigation, and that collectors often go unpunished or merely receive a warning. The complaint also alleges that LTD’s internal compliance program regularly catches collectors violating federal law, but even multiple egregious violations often go without serious punishment, and that senior managers either turn a blind eye to the unlawful acts or fail to exercise the supervision necessary to recognize the problems.

Under the proposed settlement, LTD will pay a $1.375 million civil penalty. In addition, LTD and its owners, Timothy Feldman and Leonard Pruzansky, and its top managers, John Brewster and Derrek Davis, are permanently prohibited from misrepresenting to consumers that nonpayment of a debt will result in garnishment of wages, seizure or attachment of property, or lawsuits. They also are permanently barred from using false, deceptive, or misleading representations in connection with the collection of any debt, communicating with a consumer at any unusual time or place, including their place of employment, or harassing, oppressing, or abusing any person.

The settlement requires the defendants to clearly and conspicuously disclose to consumers that they may stop the company from contacting them about the debt, and to notify consumers that they may contact a special LTD physical address, e-mail address, or toll-free phone number if they have a complaint about the way the company is collecting the debt.

The Commission vote to refer the complaint and consent decree to the Department of Justice for filing was 5-0. On behalf of the FTC, the documents were filed by the Department of Justice in the U.S. District Court for the Southern District of Texas, Houston Division.

See a copy of the actual complaint.

If the banks are shirking their responsibility onto consumers to act as good credit stewards then there will be no end in sight to accelerating consumer debt. While it is true that the majority of people do not show signs of credit troubles, that does not mean that they aren't overextended, just not delinquent. It also does not mean that credit cards alone are the source of credit stress. There are lots of other avenues into the pockets of consumers through mortgages, home equity loans, secured and unsecured loans, store financing, and on and on.

The irony here is that there is no conclusive evidence that financial education prevents people from getting into money troubles. And oh yes, the statement that the banks are doing what they can to provide "manageable solutions" is a load or **** as well. In the U.S. banks do almost everything but allow consumers to make fair, reasonable and sustainable repayment arrangements.

Somebody needs to give that Eddie guy an Academy Award for great acting or a urine test to figure out what the hell hallucinogenic drug he's is on.

Michelle Singletary's March 4 Business column, "A Horror Movie for Our Times," was right to focus on the issue of debt in America.  As Ms. Singletary pointed out, the best debt is no debt.

However, some form of debt is a reality for most Americans today, whether that debt is used to get a college education, buy a home or cover unexpected medical emergencies.  When it's used wisely, debt can even probe to be a benefit.

Interestingly, credit card balances comprise only about 3 percent of the debt carried by an average American household.  Unfortunately, a small minority are unable to manage that debt.  Yet more than half of Americans pay their balances in full each month.  Still there is room for improvement.

The credit card industry has actively focused on providing financial literacy education to consumers of all ages and income levels.  Such programs provide crucial information to those for whom the concepts of credit and debt are new, and they provide manageable solutions for people who may find themselves heading toward or in financial peril.

EDWARD L. YINGLING
President and CEO
American Bankers Association