Consumers involved in an auto finance regulatory matter more than two years old will soon begin to receive refund checks from the Federal Trade Commission for an average amount of $380.
The FTC said it is mailing 288 checks totaling more than $109,000 to people who paid an up-front fee to Regency Financial Services, which the regulator said promised to get them better terms for their auto financing. According to the FTC, the company and its chief executive officer, Ivan Levy, did not provide the promised services and failed to honor their “money-back guarantee.”
In July 2015, the defendants agreed to pay money to settle the lawsuit. The settlement banned them from telemarketing, and from selling debt relief products or services.
Affected consumers will receive full refunds based on information they reported to law enforcement.
Nearly two years ago, Levy and Regency Financial Services settled the complaint where the FTC alleged that they violated the FTC Act and Telemarketing Sales Rule by promising consumers services to stop the repossession of their vehicles, and to obtain lower interest rates and monthly installment payments for an upfront fee of $499. The FTC’s complaint also alleged the company failed to honor its “money-back guarantee.”
In addition to the bans on telemarketing and debt relief services, the defendants also agreed to a judgment of $330,000 to redress the victims of their scheme. The settlement order also prohibited the defendants from misrepresenting the terms or rates that are available for any loan or extension of credit and the ability to improve a consumers’ credit rating.