A man whose selling tactics were labeled as “deceptive” will no longer be allowed to take part in the telemarketing business based on an agreement struck with the Federal Trade Commission.

Through the settlement, James Nicholson will not be allowed to engage in telemarketing. Nicholson, along with a collection of companies he controls, will also have to pay more than $200,000 as a result of the agreement.

Last year the FTC filed a lawsuit against Nicholson saying that he used deceptive practices to market a credit card product to people with low credit scores or those with no credit history. Allegedly, the cards were advertised to these consumers as offering them a significant source of credit, which they could use for cash advances. Furthermore, consumers were duped into thinking that activity on the card would be reported to credit bureaus.

In reality, the cards could only be used at sites that were associated with Nicholson’s Group One Network, could not be used for cash advances and account activity was not reported to bureaus. People who got the cards were also required to pay an up-front fee in order to obtain them which amounted to about $250. Consumers were never told that they could not get a refund on the amount they paid for the cards.

This isn’t the first time that Nicholson has had legal trouble. The FTC said Nicholson pled guilty in 1995 to wire fraud associated with telemarketing. He will no longer be able to sell credit cards or loans with advance fees.

“It also bans him from assisting anyone in telemarketing or marketing such loans,” the FTC said. “Furthermore, the settlement prohibits Nicholson and his companies from misleading consumers about credit-related goods or services, or any other goods or services they market.”

While the FTC makes moves against suspected fraud, members of Congress are trying to come to an agreement on financial reforms. Efforts from both the House and Senate would create a new consumer financial protection department, which would monitor a variety of products marketed to people.

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