One Technologies agrees to make Repayment of $22 Million to its Customers
One Technologies and its affiliates have agreed for a payback of $22 million under an agreement announced on Wednesday by the Federal Trade Commission and Illinois and Ohio. One Technologies also did business under the names ScoreSense and MyCreditHealth.
At least 210,000 consumers throughout the country might be eligible to get refunds from the Dallas-based company. The company promised to provide free credit monitoring to its customers, but this billed them almost $30 million a month for the service.
It has been reported that out of the total amount, about $21.9 million will be used to refund customers. The FTC in a statement said that Dallas-based One Technologies LP and two related companies operated at least 50 websites. These websites generally advertised free credit scores, FreeScore360. com, FreeScoreOnline. com and ScoreSense. com.
The lawsuit claimed that the companies did not properly disclose the consumers, who obtained their credit score through an online portal, that they were enrolled in a credit monitoring program that automatically billed their credit cards $29.95 a month until consumers canceled the service.
The FTC said that after customers signed up for the free credit score, the company asked the customers to lend their credit card numbers to verify their identity.
Later, customers were forced to make repeated calls to cancel the program or get a refund. It was found that more than 200,000 customers filed complaints against the company.
Under the settlement the company has agreed to disclose that the customers will be charged for its credit monitoring program. One Technologies in a statement said that the changes have already been implemented and the settlement will not disrupt its service or growth.
Fred Loeber, a senior vice president at One Technologies, said, "Our intention was always to sign up only those customers who wanted our product and were aware of its benefits. We always believed that we complied with the law".
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