WASHINGTON (Legal Newsline) — The Federal Trade Commission (FTC) announced Oct. 30 that it has obtained a court order against two individuals for their role an alleged rental property scheme.
According to the FTC, Danny Pierce and Andrew Lloyd placed ads on Craigslist for fake rental properties. When consumers responded to the ads, the defendants would tell them that they could receive a tour of the property if they first acquired credit reports and scores.
Lloyd and Pierce would direct them toward a website the two actually owned. Although the two would allege to consumers that the service was free, they would allegedly secretly enroll consumers in credit monitoring services that cost $29.94.
Pierce and Lloyd have been banned from misrepresenting material facts about their services. A $6.8 million judgment against the two will be partially suspended once Pierce pays $117,000 and Lloyd pays $645,000.
The FTC voted 2-0 to approve the proposed stipulated order against Pierce and Lloyd. The agreement was entered into the U.S. District Court for the Northern District of Illinois Eastern Division on Oct. 26.