Just hang up on credit-card robocalls

Herb Weisbaum • Profile • E-mail

Despite strong “Do Not Call” laws in both countries, telephones across the U.S. and Canada are ringing at all hours of the day and night with annoying and deceptive robocalls. These automated, prerecorded telemarketing calls promise to save you thousands of dollars by lowering the interest rates on your credit cards.

If you haven’t received one of these robocalls, consider yourself lucky. Chances are you will.

“Some of the companies making these calls rip off consumers by charging large upfront fees to negotiate lower interest rate with their credit card companies,” says Alison Southwick with the Council of Better Business Bureaus. “In many cases that ‘negotiation’ is nothing more than calling the bank’s customer service number and asking for a better rate.”

The recorded messages generally say something like: “There are no problems currently with your account; however it is urgent that you contact us concerning your eligibility for lowering your interest rates to as little as 6.9 percent.”

The recorded message does not give the name of the company calling. It often says it’s from “card services” or “card holder services.” Many of the people who’ve complained to the BBB say they believe the message was designed to trick them into thinking it was a call from their credit card company.

The BBB says some of these robocalls are coming from three companies: CSTR Solutions and Genesis Capital Management both based in Orlando, Fla. and Mutual Consolidated Savings in Tacoma, Wash. The BBB has received hundreds of complaints about these firms. Each has an “F” rating with the bureau.

I tried contacting all three companies. I could not find a working number for CSTR Solutions in Orlando. My messages to Mutual Consolidated Savings in Tacoma were never returned.

David Allen, the owner of Genesis Capital in Orlando, said he was “quite shocked” by the BBB report. “We’re a great company that provides a tremendous service,” he told me.  Allen insists his company does not use robocalls.

New rules for robocalls The Federal Trade Commission created tough new rules for automated telemarketing calls. All recorded sales calls must give you (at the beginning of the call) an automated way to opt-out of future calls from that company. In September, telemarketers will be required to get your written permission in order to send you a robocall. Of course, scammers tend to ignore the rules. So you need to be alert and aware. Remember: Calls that are not trying to sell you something are exempt from the “Do Not Call” list and the new restrictions on recorded messages. This includes surveys and political calls.

It sounds so good
Patricia Poole of Mineral City, Ohio, is almost 70 and she does not want to leave her kids saddled with her credit card debt. So the automated call from Mutual Consolidated Savings sounded mighty appealing.

The company promised to work with Poole’s creditors to get her interest rates lowered or eliminated. All of her credit cards would be paid off in about 4 years. “If we can’t do that,” the operator told her, “we’ll give you your money back.” So Poole paid the one-time fee of $695.

That’s the last she heard from them. “They did nothing for me,” she says.

Poole called and called to demand her money back. Finally, the company agreed to a partial refund of $200. The money never came. The BBB says these companies rarely honor their money-back guarantee.

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