FTC: Cramming Fraud Targets Consumer’s Credit Cards

There is a new consumer alert from the FTC about a kind of fraud
called cramming. Small charges $10, $20, $30 secretly inserted onto your
credit card bill. Small charges that add up to millions of dollars. It
hits consumers straight in the wallet–a $30 charge here, $40 there,
buried so deep in your credit card bills, you might never even notice
it. Tens of thousands of Americans were hit with what the FTC calls fake
fees, charged by vague financial services, like Debt 2 Wealth, draining
more than $24 million in all. They steal little amounts at a time
hoping consumers just don’t notice. Many of the consumers had recently
applied for a payday loan or cash advance when they spotted the charge
on the bill and called the toll free number next to it to complain. They
entered an infuriating maze of call centers around the globe. The FTC
says 20 million people a year fall victim to it. And until now, most of
the charges were buried in phone bills. [ABC News]