Stumbo
FRANKFORT, Ky. - Restitution checks are being sent out in Kentucky to the alleged victims of a check soliciting scheme, Attorney General Greg Stumbo said Friday.
The checks total $70,000 and will be mailed to more than 800 consumers and small business owners. It is the result of a settlement between Stumbo Yellow Pages Inc., Electronic Directories Companies and Continental Recovery and Filing Solutions.
Yellow Pages Inc. is alleged to have mailed checks to consumers for $3.47 and then claimed the consumer was obligated to pay $177 for Internet directory services when the checks were cashed.
"Scams like this are targeted by my office," Stumbo said. "Small business owners were harassed and defrauded by these bad actors. I am pleased to provide this recovery to affected citizens."
Stumbo also boasted that Kentucky is a "pioneer" in the area -- "We have now become a model for the nation in stamping out this abusive practice," he said.
After consumers did not pay the $177 bill, it was turned over to Continental Recovery and Filing Solutions, a collection agency.
Stumbo says state law provides that checks being mailed as a solicitation must contain certain mandatory disclosures. He adds that the companies violated the Consumer Protection Act.