Beginning May 1, 2010 a claims administrator working for the Federal Trade Commission will mail more than 34,000 checks totaling almost $18 million to consumers identified as victims of a series of cross-border fraud schemes involving payments via MoneyGram International, Inc., the second-largest U.S. wire-transfer company.

In October 2009, the FTC charged that MoneyGram agents helped fraudulent telemarketers and other con artists who tricked U.S. consumers into wiring millions of dollars within the United States and to Canada – after these consumers were falsely told they had won a lottery, were hired for a secret shopper program, or were guaranteed loans. A press release describing the FTC’s complaint and the settlement agreement with MoneyGram can be found at: http://www.ftc.gov/opa/2009/10/moneygram.shtm.

The redress checks being issued today average $520. They are legitimate checks, and the FTC urges consumers who receive them to cash them within 60 days. The checks are being sent to U.S. consumers who complained directly to MoneyGram about their fraud-induced money transfers within the United States or to Canada. The redress program covers consumers whose transfers were made between the years 2004 through 2008. Consumers should call the claims administrator at 1-877-740-6993 with any questions.

The MoneyGram redress checks can be cashed immediately after they are received. The FTC never requires a payment of money up-front, or the provision of additional information, before consumers cash the redress checks they are issued.

You aren’t the only person who has seen those catchy commercials and wondered why the advertisement says that you can get a free report, only to go to the website and have it try to sell you something instead. Why isn’t somebody stopping these people from trying to scam you?

Well, the Federal Trade Commission (FTC) has done something about it.

The Federal Trade Commission’s Free Credit Reports Rule will require new prominent disclosures in advertisements for “free credit reports.” For example, any Web site offering free credit reports must include a disclosure, across the top of each page that mentions free credit reports, which states:

THIS NOTICE IS REQUIRED BY LAW. Read more at FTC.GOV.
You have the right to a free credit report from AnnualCreditReport.com
or 877-322-8228, the ONLY authorized source under federal law.

The Web site disclosure must include a clickable button to “Take me to the authorized source” and clickable links to AnnualCreditReport.com and FTC.GOV.

The amended Rule also restricts practices that might confuse or mislead consumers as they try to get their federally mandated free annual credit reports. For example, the amended Rule requires nationwide consumer reporting agencies – Equifax, Experian, and TransUnion – to delay any advertising for products or services on AnnualCreditReport.com until after consumers get their free credit reports.

 Information in credit reports may affect whether consumers can get a loan or a job, so it is important that consumers check their credit reports and correct any information that is inaccurate. Each of the nationwide credit reporting companies is required to provide consumers with a free copy of their credit reports once every 12 months upon request. Consumers can learn more about their right to a free credit report under federal law at http://www.ftc.gov/freereports.

The amended Rule is effective April 1, 2010, except for the wording of the disclosures for television and radio advertisements, which takes effect on September 1, 2010. The FTC will monitor and evaluate the effectiveness of the amended Rule and the required disclosures, and will consider additional changes as necessary.

FTC has announced that MoneyGram International has agreed to pay $18 million to the Federal Trade Commission to settle charges that it knowingly allowed con artists to use its operation to swindle consumers out of millions of dollars.  The money will go directly to provide relief to victims.  If you were a victim, call 202-326-3755 for information on how to submit a claim.

The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, click: http://www.ftc.gov/ftc/complaint.shtm or call 1-877-382-4357.

The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad. For free information on a variety of consumer topics, click http://ftc.gov/bcp/consumer.shtm.