Federal Trade Commission v. Automated Electronic Checking Inc., et al.
Published: Mar. 23, 2013 | Result Date: Mar. 11, 2013 | Filing Date: Jan. 1, 1900 |Case number: 3:13-cv-00056-RCJ-WGC FTC Settlement – $950,000
Court
USDC Nevada
Attorneys
Plaintiff
Defendant
Matthew X. Oster
(Wolf, Rifkin, Shapiro, Schulman & Rabkin LLP)
Facts
The Federal Trade Commission (FTC) charged Automated Electronic Checking Inc. (AEC) of debiting, or attempting to debit, millions of dollars from tens of thousands of consumers' bank accounts without the bank holders' consent. AEC, a payment processor, enabled merchants to obtain customer payments for products and services via electronic banking. The complaint alleged that AEC knew, or should have known, that some of its client merchants obtained the consumers' financial account information through fraudulent means and lacked authorization to debit their accounts.
Result
AEC agreed to settle the charges by paying $950,000. The settlement also banned AEC and two of its principals from processing electronic payments.
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