Attorney General Wins Refunds For Fraudulent Telemarketing

Attorney General Spitzer announced today that refund checks will be sent to hundreds of New Yorkers as part of a settlement with a California telemarketing and mail order firm investigated for fraudulent and deceptive practices.

National Data Services (NDS) of Santa Barbara, California was fraudulently advertising government sales of foreclosed homes and seized automobiles, the availability of college cash grants and home-based business opportunities. The company also allegedly failed to honor its "money back guarantee" and repeatedly added unauthorized charges to its customers' bills.

In agreeing to this settlement, NDS, also known as Clarendon House, will pay up to $65,000 to consumers who fell victim to the scheme, as well as an additional $32,500 in penalties and court costs.

"Over 400 New York State consumers who purchased information from NDS have confirmed that they want a refund," Attorney General Spitzer said. "As a result of this settlement, the ‘money-back guarantees' pledged by this company will finally be fulfilled."

Describing their publications as "detailed and current," the company claimed to know how consumers could make money in their immediate geographical area. Individuals who fell for the pitch, however, received very general data or information about other regions. The packets also contained inaccurate telephone numbers or numbers easily obtainable from a telephone book or the local library.

Under the terms of the settlement, NDS also has agreed to stop misrepresenting the nature and characteristics of its goods and services, to fully disclose and honor its refund policy and not to charge a consumer's credit card or checking account without the consumer's authorization. To ensure future compliance, the company posted a $25,000 bond with the Attorney General to continue doing business in New York State.

Consumers who wish to file a complaint against NDS must do so by March 20, 1999. Individuals who has questions are encouraged to call the Attorney General's consumer hotline at 1-800-771- 7755.