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August 9th, 2007, 07:54 AM #1
- Join Date
- January 18th, 2005
- The Swamp
EDebitPay, and several of their other corporations, have earned themselves a temporary injunction against their business courtsey of a suit filed against them by the FTC.
The judge also froze their assets in conjunction with this suit.
This the short verison of what is going on (I've posted the long version on my blog).
EDP is accused of charging consumers $159.99 in fees for the prepaid Visa and MC they market. FTC says there was either inadequate or no disclosure regarding the fees.
It's also claimed that EDP used the information captured when consumers applied for their short-term loans (payday loans) to charge the $159.99 fee . Consumers had no idea they were "applying" for a debit card as well when they applied for their payday loan.
FTC further alleges EDP captured PII and charged consumers when they filled out an online application but did not submit the form.
Rumors are that EDP's offices have also been raided by the FBI. I haven't been able to find any type of official release on that or news story. However considering the allegations are that people's bank accounts were being debited for unaurthorized transactions, I think it's probably true. If it hasn't already happened, it probably will.
If you are an affiliate of EDP or a CPA network syndicating their offers a big heads up here. One the allegations are very serious. Two their assets have been frozen, so I'm not sure about their ability to pay any outstanding monies owed.
If EDP allowed for their application forms to be hosted on your site (I've no idea if they did or did not), then you may want to seek your own legal counsel as to what degree you may be open to any liability.
EDP has many names and web sites their offers are promoted under. So if you deal in the short-term loan and pre-paid debit card area, you may want to do some careful research about who is ultimately behind the offer.
August 9th, 2007, 09:37 AM #2
- Join Date
- August 3rd, 2007
- New York
I have a list of the various EDP offers that we have tracked. If someone needs that data, I'll be happy to supply offlist. Send me an email.
August 17th, 2007, 05:40 PM #3
- Join Date
- January 17th, 2005
- Chicago, IL
POSTED ON WICKED-FIRE:
I wanted to formally address many rumors circulating out there regarding the recent events at eDebitPay LLC. Unfortunately due to ongoing litigation I won't be able to clear everything today, but I'll address what I can right now.
First and foremost no arrests were made as this was a Civil Action and the FTC was seeking a specific performance (namely to stop eDebitPay from future business of a particular product of ours). Jon, I'm not sure who suggested arrests were made but I can promise you that it is 100% completely and utterly false.
We were unable to form a response to the posts here (and elsewhere) because of the temporary restraining order (someone posted the actual court document on another thread here, see for reference). Thus, we were stuck in the unenviable position of being unable to defend ourselves the past couple of weeks and even now I'm proceeding carefully since it has not been completely resolved. I'd like to note that I did attempt to reach out to you via PM last week but as of today you have not responded.
However, I'm sure you are a very busy guy, but we'd appreciate if you and the rest of the WF community reserve their judgment until a final resolution has been made.
Business Development Manager
Last edited by dnathan; August 17th, 2007 at 05:54 PM.
August 17th, 2007, 08:42 PM #4
I'm glad I don't promote payday loans anymore...