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BBB: Beware of ‘Robocalls” that Promise to Lower Credit Card Rates

6/8/2009

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Media Contact:  Janet C. Hart, CFEE (704) 927-8617 office

CHARLOTTE, N.C. – The Better Business Bureau has been deluged with consumer complaints about automated telemarketing calls that promise to lower interest rates on consumers’ credit cards. Also known as “robocalls,” these calls are a nuisance and they violate U.S. and Canadian Do-Not-Call laws. Some companies behind the calls are ripping off consumers by charging large up-front fees to negotiate lower interest rates with credit card companies—something consumers can do on their own for free.

Telemarketers are taking advantage of families who are struggling with debt by offering financial “assistance” for a fee and calling consumers around the clock - 24 hours a day. Consumers report ‘robocalls’ on both their cell and home phones even when the numbers are registered with the Federal Do-Not-Call lists. ‘Robocalls’ are prerecorded telephone calls made using automated dialers. Under North Carolina law, prerecorded commercial telemarketing calls are illegal unless a live operator first asks if the consumer wishes to listen to the message.

“These telemarketing calls offering to lower credit card interest rates disregard state and federal laws and they charge unnecessary fees,” said Tom Bartholomy, BBB President. “You can call your credit card companies on your own - for free – and ask them to lower your interest rates and you will get similar results.”

Consumer complaints also report problems with stopping the telemarketing calls despite repeated requests. In other complaints, consumers allege that the telemarketing companies failed to uphold money-back guarantees when they are unsuccessful in lowering credit card rates. The BBB has received numerous complaints about two Orlando-based companies, CSTR Solutions, Inc. and Genesis Capital Management, and one Tacoma-based company, Mutual Consolidated Savings.

The BBB offers the following advice for consumers about ‘robocalls’:

  • Never give personal information, including Social Security, bank or credit card numbers, over the phone to an unknown telemarketer.
  • Be sure you understand the terms and conditions of the contract before you sign up or provide credit card or other payment information.
  • U.S. consumers can place their home phone number on the federal Do Not Call list by visiting www.donotcall.gov. If your number is already on the list, but you continue to receive telemarketing calls—or you receive ‘robocalls’ on your cell phone—you can report these problems on the same website.
For more information, visit www.bbb.org or call at 1-877-317-7236 toll-free in N.C. and S.C. 

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