![]() Payment processors, like iStream, provide merchants with the ability to obtain customer payments for products and services via electronic banking. “The order… bans iStream from processing high-risk payments and orders it to pay $2.3 million that can be used to provide refunds to defrauded consumers,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection.“Unfortunately, this amount represents a small fraction of the approximately $40 million in total losses suffered by consumers-a direct result of the Supreme Court’s decision in AMG. Without a statutory fix to restore the FTC’s strongest authority to obtain refunds, these consumers, and millions more like them, cannot be made whole.” The complaint alleged that 99.5 percent of the consumers being illegally charged for the “discount clubs” never accessed any coupons, and that tens of thousands called the defendants to try and cancel the charges, while thousands more disputed the charges directly with their banks. Consumers were enrolled in the discount club scheme online and through outbound telemarketing. According to the FTC’s complaint in the case, which was first filed in 2017, iStream Financial Services and its senior officers, Kris Axberg and Richard Joachim, allegedly debited money from consumers who were seeking payday or cash advance loans, but were enrolled in a bogus coupon service and charged initial fees up to almost $100 plus as much as $19.95 each month. ![]()
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