Robo-call Rip-Offs
The Better Business Bureau (BBB) is warning people to steer clear of companies that are robo-calling people across the country with offers to reduce their credit card interest rates, reports MSNBC. It calls out three companies by name -- CSTR Solutions, Genesis Capital Management, and Mutual Consolidated Savings -- all of which have earned an “F” rating by the BBB.
According to the BBB, the robo-call messages appear as if they're coming from the credit card companies themselves, and they have a tone of urgency. They offer a better interest rate for a fee. But negotiating a better rate with your card issuer is something you can do yourself for free. (Check out various other do-it-yourself credit card tips at Credit.com.)
The article offers an example of what one might expect from one of these rip-off companies: Patricia Poole of Mineral City, Ohio paid $695 to Mutual Consolidated Savings, which promised to "work with Poole’s creditors to get her interest rates lowered or eliminated." But after she paid the money, Poole says she never heard from anyone at Mutual Consolidated Savings. She finally asked for her money-back (as per the guarantee she was given) and was able to wrangle just $200 back, but not the entire amount.
MSNBC's good advice to anyone getting a robo-call like this is simple: 1) Don't offer any personal information whatsover. 2) Collect all of the information about the call that you can (caller ID, company name, time & date of call). 3) File a complaint with the Federal Trade Commission.
If enough people do this, robo-callers will be put out of business.
Oh yes, just like those car warranty people. That only ended because it pissed off a US Senator. Really, when the Do Not Call list has absolutely no teeth, what do you expect to happen?
Posted by: Adam | June 30, 2009 at 06:40 PM