May 30, 2007
Kansas City, Mo. — Attorney General Jay Nixon has filed a lawsuit seeking restitution and penalties against a Kansas City company that repeatedly violated Missouri consumer protection laws in the sale of credit card processing equipment to small businesses. Nixon’s lawsuit against First Capital Bankcard Inc., and its president, Ryan Paine, filed on Tuesday (May 29) in Jackson County Circuit Court, is also seeking preliminary and permanent injunctions.
Since 2003, First Capital Bankcard has been in the business of advertising, selling and leasing credit card processing equipment and related services to consumers in Missouri and other Midwestern states. Nixon says the defendants engaged in deception and fraud, by misrepresenting that:
Nixon says his office received approximately 35 complaints about the defendants, with individual losses ranging from several hundred dollars to as high as $2,000.
“Running a small business is challenging enough without having to worry about someone scamming you through the sale or lease of merchandise as the defendants did in this case,” Nixon said. “We’ll make sure they are held accountable for the manner in which they defrauded consumers.”
Nixon’s lawsuit requests that the court issue an injunction against First Capital Bankcard, barring the business from continuing to violate Missouri’s consumer protection laws. The Attorney General is also asking that the court order the defendants to pay restitution to compensate consumers who suffered losses due to the defendants’ conduct, appropriate penalties and court costs.