The Federal Trade Commission advised consumers not to fall prey to companies that promise to reduce debt for upfront fees.

The FTC said it was able to halt the operations of a rogue payment processor and a sham credit-card interest reduction telemarketing scheme in Ohio that allegedly worked together and swindled millions of dollars out of consumers struggling with credit card debt. The defrauded amount totaled $24.5 million.

The agency said at its request, a federal court in Texas issued temporary restraining orders against Madera Merchant Services and B&P Enterprises as well as Educare Centre Services and Prolink. The orders forced the companies to stop their operations and their assets were frozen.

The two companies were allegedly using remotely created payment orders or RCPOs to withdraw more than $13 million from accounts of victims of telemarketing operations since January 2016. The FTC rules prohibit the use of RCPOs in connection with telemarketing sales.

The payment processing scheme was run by Bruce and Patricia Woods as well as their son in-law Victor Rodriguez through Madera Merchant Services LLC and B&P Enterprises. In 2008, Bruce Woods was sued by Ohio for running a similar scheme.

The FTC and Ohio AG complained that Educare Centre Services Inc. and Tripletel Inc. promised to significantly reduce the interest rates on consumers' credit cards and charged consumers advance fees before providing any debt relief services.

The companies also gave false promise to refund the entire money if customers were not happy with the service or they did not receive the promised rate reduction.

Educare and Tripletel allegedly bilked more than $11.5 million from consumers through RCPOs.

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