June 17, 2009
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News: Consumers Beware; New CC Telemarketing Scam
Better Business Bureaus (BBB) across the country are being inundated with complaints of excessive automated telemarketing calls soliciting assistance with negotiations of lower credit card interest rates. The New York BBB and Senator Charles Schumer (D-NY) have issued a warning to consumers alerting them to the credit card telemarketing scam. According to Alison Southwick of the BBB, over 200 consumers that have notified them were victimized by the scam and endless others have filed complaints about the bogus robocalls. Victims paid the companies to negotiate on their behalf for lower interest rates that they could have received free from the credit card company. Southwick told FOXNews that it's virtually impossible for a consumer to know who the company making the offer is without actually signing up for the service. It makes it impossible for consumers to check the validity of the company's service.
The Better Business Bureau's investigations found that CSTR Solutions, Inc. and Genesis Capital Management both based out of Orlando, Florida, and Mutual Consolidated Savings, based out of Tacoma, Washington are major players in the telemarketing scam. The companies promise to save consumers from $2,000 to $25,000 in credit card interest fees by negotiating lower interest rates. Authorities say not only do the calls violate the U.S. and Canadian Do Not Call laws, the companies do not stand behind their money back guarantee to refund the consumer's money if negotiations fail. Additionally, the companies deceive consumers by leading them to believe they are affiliated with their credit card company.
The new telemarketing scam warning follows the recent federal judge injunction against four individuals and three companies accused of participating in bogus auto warranties. Steve Cox of the BBB stated that these companies along with the credit card interest rate scam companies have a "complete disregard for federal laws." The BBB says the calls begin with a recorded message saying there is nothing wrong with the consumer's account but that it is urgent they contact them. Some messages also say the call is the final attempt to contact them. The messages do not leave the name of the company and often identify themselves as Card Services or cardholder services. Consumers beware!