Bogus $10,000 Credit Line

In May 2014, the Federal Trade Commission mailed checks totaling over $3.7 million to over 26,000 consumers whose bank accounts were debited without their consent by EDebitPay LLC.  The company deceptively offered a $10,000 credit line that was really a membership to a website where consumers could buy goods.

In 2011, a federal district court ordered the company to pay more than $3.7 million after finding that the defendants were in contempt of court for violating a 2008 court order by selling a bogus “$10,000 credit line”, and a “no cost” prepaid debit card with hidden fees, to consumers who were unemployed or had poor credit.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them.

For additional information on fraudulent business practices, go to

Discussion Questions

1.  How do you discover that someone has debited your bank accounts?

2.  What steps can you take to prevent such fraudulent business practices?

Teaching Suggestions

Ask students what actions might they take to ensure that their credit cards and other financial information are secure.

Ask students to compile a list of resources a person can use to report such fraudulent business practices, and check out a company’s reputation before signing a contract.

Categories: Chapter 5, Identity Theft | Tags: , , , | Leave a comment

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