The final six of 10 defendants named in an alleged “Rachel from Cardholder Services” scam have agreed to settle Federal Trade Commission charges that they misled consumers with bogus claims that they would lower their credit card interest rates.

The settlement bans Emory L. “Jack” Holley IV, Lisa Miller and the remaining corporate defendants from telemarketing and marketing debt relief services or assisting others in such conduct, prohibits them from misrepresenting any products or services, and imposes a partially suspended $11.9 million judgment.

Holley, Miller and the companies they control also are banned from all telemarketing, with extremely limited exceptions to allow them to engage in legitimate business activities. The settlement also bans the defendants from advertising, marketing, promoting, offering for sale or selling any debt relief-related products or services.

The FTC filed its complaint in this matter in October 2012, alleging that the defendants violated Section 5 of the FTC Act and the agency’s Telemarketing Sales Rule (TSR) by charging illegal up-front fees during telemarketing calls in which they made false promises to reduce the interest rate on consumers’ credit cards and save them thousands of dollars.

In the complaint, the FTC also charged the defendants with making other misrepresentations, such as claiming that consumers who bought their services would be able to pay off their debts much faster as a result of the lowered credit card interest rates and making false claims about their refund policies.

The other four Key One defendants agreed to settle the FTC charges against them this summer. They allegedly defendants participated in the scheme by opening merchant and bank accounts in their names for processing consumer payments obtained in connection with the deceptive sales of credit card interest rate-reduction and by providing substantial assistance, such as web pages, mail drops, customer service and shipping of CDs with general debt and other financial information to consumers.

The final order also prohibits the six defendants from making any misrepresentations related to any financial product or service, and requires them to substantiate any claims they make to consumers in the future about the potential benefits or effectiveness of any product or service. Finally, the order imposes a partially suspended judgment of $11.9 million jointly against the corporate and individual defendants. The defendants' assets, currently being held in receivership, will be paid to the Commission.

he final order settles the FTC’s allegations against: 1) ELH Consulting LLC, also doing business as Proactive Planning Solutions; 2) Purchase Power Solutions LLC; 3) Allied Corporate Connection, LLC; 4) Complete Financial Strategies LLC; 5) Emory L. Holley IV, a/k/a Jack Holley, individually and as the sole member of ELH Consulting LLC; and 6) Lisa Miller, individually and as the sole member of Allied Corporate Connection LLC, Complete Financial Strategies LLC, and Purchase Power Solutions LLC.

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