Ideal Financial Solutions Scam Revealed

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We support reforms to the financial marketplace that protect consumers from unscrupulous banks and lenders.

By Consumers Union on Wednesday, February 20th, 2013

Banking electronically has made life easier for many consumers, allowing for faster and more convenient payments.  On the other hand, ripping people off has also become significantly easier as well.  The FTC just announced the unraveling of a large scam, led by “Ideal Financial Solutions”  which defrauded consumers of more than $25 million in unauthorized debit and credit card payments.

The FTC’s complaint alleged “debits and charges appeared on consumers’ bank and credit card statements with a telephone number and the name of one of more than 50 billing campaigns the defendants ran, each with multiple mail drops and addresses, including Debt2Wealth, Funding Assurance, and Avanix. Many consumers did not notice the debits and charges, which often caused them to incur bank penalty fees or overdraft charges due to insufficient funds. Others complained to their banks and often had the charges reversed, which was reflected in very high return rates – the rate of transactions rejected and returned by consumers or their banks.”

Here is another good reminder to us all to carefully check our transaction statements for any errors.   Luckily, consumers who use debit cards or credit cards, have federal protections that protect loss from these types of mistakes or scams.  But, it requires vigilance by consumers in order to be effective within defined periods of time, so be sure to review your accounts carefully on a frequent basis.

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