For the second time in three weeks, the Better Business Bureau of the Mid-South is issuing a consumer alert about robocalls that promise to lower the interest rates on your credit cards. An increasing number of consumers continue to contact the BBB about the incessant automated telemarketing calls. With many families drowning in debt, telemarketers offering suspect financial assistance are taking full advantage of the situation.
The BBB has numerous concerns about these calls, including:
· The companies making the calls are often violating the Do-Not-Call registry by calling numbers registered with that list.
· The calls are often designed to deceive the recipient into thinking their credit card company is attempting to contact them.
· The calls indicate a sense of urgency by stating that this is the final call to lower your interest rate.
· The calls are a nuisance. Consumers report receiving the calls around the clock, some as early as 3 a.m. on both their home and cell phones.
· The telemarketers ignore consumers’ requests to stop calling.
· The companies are not identifying themselves on the phone, but may give a generic sounding name, like Card Services or Card Holder Services.
· The callers are asking for a consumer’s credit card information.
· The companies are asking for $700-1,000 upfront to renegotiate a consumer’s interest rate on their credit card - something the person can do for himself.
“Similar to telemarketing calls claiming your auto warranty is expiring, these calls also seem to have complete disregard for federal laws,” said Randy Hutchinson, BBB President. Hutchinson has received the calls at both his home and office. He followed the prompts to speak with a live operator, and was put through to Sara, who forwarded him information on two separate occasions – from American Freedom Financial in one case and Federated Credit Company in the other. The information was virtually identical, except for the company name. Both brochures sported the BBB logo and contained a mock-up of a BBB report for a West Palm Beach BBB Accredited Business that claims it has been victimized as well.
A Memphis area consumer who works for an internet telephone company recorded a call he received, which stated: “We have made several attempts to reach you. This is your final courtesy call before we are unable to lower your current credit card interest rate.” When he told the operator that he already had a fixed rate of 3%, she hung up on him.
The BBB offers the following advice for consumers who receive robocalls from companies offering to lower their interest rate:
· Never give personal information, including Social Security, bank or credit card numbers, over the phone to an unknown telemarketer. Always research the company first by reviewing its BBB Reliability Report at www.bbb.org.
· When considering any company offering any type of financial assistance, insist on getting a contract in which all terms and conditions are clearly explained before signing up or providing credit card or other payment information.
· Be wary about paying an upfront fee before any services are delivered.
· If you are having trouble paying your bills, talk to your lenders and local non-profit credit counselors rather than these robocallers.