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Globex Telecom Settles With FTC Over 'phony Credit Card Interest Rate relief Scheme'

globextelecom sept23 lt

Telecommunication company, Globex Telecom of Canada, and an affiliate agreed to pay $1.95 million to settle Federal Trade Commission and State of Ohio charges that it facilitated bogus credit card interest relief scheme by charging millions of dollars, FTC said in a statement.

This settlement is the commission's first consumer protection case against a VoIP service provider.

The FTC alleged that Globex provided a telemarketing company called Educare Centre Services with the means to call customers, including illegal robocalls to market Educare's fraudulent credit card interest reduction services by collecting an upfront fee. The agency said that Globex as well as Educare were controlled by Mohammed Souheil, Globex's former chief executive.

According to the terms of the settlement, Globex and its U.S.-based units are not allowed to service clients who do not have a public-facing website or social media presence, and also these companies can not accept stored value cards or cryptocurrency as payment method.

Globex and its subsidiaries are also required to block spoofed calls and any other suspicious calls, including emergency numbers like 911.

The defendants are prohibited from all kinds of telemarketing in the U.S, FTC said.

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