In a nationwide enforcement sweep called Operation Protection Deception, the commission filed six complaints against companies that persuaded consumers to invest in credit card protection schemes that cost big bucks, but offered nothing in return. I think what happens is consumers have some information about how things work and their responsibilities and liabilities, said Jennifer Larabee of the FTC s Western Regional Office in Los Angeles. But, they don t have complete information.
Consumers fall for it and, as a result, are out money.
Chances for reimbursement are fairly slim, Larabee said, because few of the marketers have assets such as houses, savings or retirement accounts to draw from. These scam artists get the money and then spend it, she said. You can never recover enough to refund that amount of money, she said. We always tell people, if you re not ready to the lose the money, don t send it. Others posed as members of a credit card company s security department, offering to assist customers in the activation of protection features on new credit cards.