Payment Processor Banned From Industry for Allegedly Helping Telemarketers Defraud Consumers

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  • The CFPB reached a settlement with payment processor BrightSpeed Solutions Inc. and its founder (collectively, “BrightSpeed”) to resolve allegations that it knowingly assisted companies in defrauding consumers by knowingly processing customer payments obtained through fraud.
  • The complaint alleged that BrightSpeed processed payments for companies that used illegal telemarketing schemes to offer and sell technical support services and antivirus software for up to $2,000, even though the software and services were available for free. The complaint further alleges that BrightSpeed continued to process the companies’ payments despite hundreds of consumer complaints, several police inquiries, and banks raising concerns, among other things.
  • Under the terms of the proposed stipulated judgment and order, Brightspeed will pay a civil money penalty of $500,000 and will be permanently barred from offering payment processing, consumer lending, deposit-taking, and financial-advisory services

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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