Watch Out For Robocalls Tied To Rate Reduction Scams

The Federal Trade Commission recently announced a lawsuit against three companies

who broke federal laws by making robocalls to consumers related to an interest rate reduction program. Robocalls sound like they're made by a robot "the calls are made with an autodialer and a computerized voice system. This specific group of companies is charged with violating the Do Not Call Rule and several other laws.

In the robocalls, the companies (Economic Relief Technologies, LLC, Dynamic Financial Group (U.S.A.) Inc., and JPM Accelerated Services) use a computer to prompt consumers to press "1" if they'd like to speak with someone about lowering their credit card interest rate. Who doesn't want a lower interest rate in this time when interest rates continue to increase?

Consumers who agreed to the service were charged an initial fee, which was almost $1,500 in some cases. In exchange, the companies promised to lower credit card interest rates and guaranteed a savings of at least $2,500. Some consumers report that the negotiation process is just a conference call to the credit card company's customer service department and a request for a lower interest rate. That's something you can do for free. Unfortunately, consumers who signed up for the service and paid their fees didn't get lower interest rates. The FTC reports that few refunds were given.

How to Spot a Rate Reduction Scam

This sounds like an easy scam to spot, but apparently numerous consumers have been victims of it. Remember this rule: never give out your credit card information on calls you didn't initiate the communication. If the service sounds interesting, don't make an immediate decision to try it out. Instead, get the company's name and phone number and do some research on it first. Check with the Better Business Bureau and do an internet search to see if there's any feedback on the company.

Something else to remember: you can request your own interest rate reduction, for free. Plus, the amount you pay for one of these services could be more than the interest rate savings you'd get even if the robocaller actually gets your interest rate lowered.

Where to Report Scams

You can avoid these and other telemarketing calls by registering your number with the National Do Not Call Registry at DoNotCall dot gov. If you've entered your number registry and you've received a robocall anyway, report the call to the Federal Trade Commission, the Better Business Bureau, and your state Attorney General.

If you've already been scammed, you may able to dispute the charge with your credit card company and avoid payment.

Finally, if you're having trouble making your credit card payments, contact your creditor or a consumer credit counseling agency to talk about your debt repayment options.

by: Joyce Brown

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