Consumers are sounding off to the Better Business Bureau (BBB) about automated telemarketing calls (robocalls) promising to lower interest rates on their credit cards.
Worse yet, some companies “are ripping consumers off” by charging large up-front fees to negotiate lower interest rates with credit card companies – something consumers can do on their own for free, according to the BBB.
According to figures, credit-card debt increased 25 percent in the past 10 years, totaling $963 billion – with per household credit card debt at nearly $9,000 now.
Unscrupulous telemarketers are taking full advantage of families that are drowning in debt. Consumers have reported receiving calls as early as 3 a.m. and on both their cell and home phones – even when they have registered the numbers with federal Do-Not-Call lists.
The calls are not only a nuisance; some violate Do-Not-Call laws. Still, people tell the BBB, calls continue to come, even after they ask the telemarketers to stop calling.
Robocalls generally begin with recorded messages that say thing like: “It is urgent that you contact us concerning your eligibility for lowering your interest rates to as little as 6.9 per cent.” Or, “This is our final attempt to reach you since you’ve not responded to our other calls to discuss your credit card debt,” said David Polino, BBB President.
The message invariably does not include the name of the company, but may claim to be from “Card Services” or “Card Holder Services,” according to the BBB.
Consumers must dial another number to be connected to a live person – the “operator” usually starts the sales pitch by asking for the consumer’s credit card number and whether they’re interested in lowering their credit card interest rates.
The pitch suggests you can save anywhere from $2,000 to $25,000, if you pay them – usually from $700 to $1,000 – to contact the credit card company and negotiate lower rates.
The actual negotiation can be as simple as calling the customer service number on the back of your credit card – and just asking the representative to lower your interest rate, according to the BBB.
“Consumers simply don’t need to pay any company a thousand dollars to negotiate lower rates on their behalf,” Polino said.
The telemarketers are “not forthcoming about the company they’re calling on behalf of,” according to the BBB.
However, they’ve received “numerous complaints” about two Orlando, Florida-based companies, CSTR Solutions, Inc. and Genesis Capital Management, and one Tacoma, Washington-based company, Mutual Consolidated Savings. All three companies are behind at least some of the robocalls.
According to BBB complaints, companies are failing to uphold money-back guarantees and not refunding money in cases where they are unsuccessful in lowering rates.
U.S. consumers can place their home phone number on the federal Do Not Call list by visiting www.donotcall.gov or by calling 888-382-1222. There is a 30-day waiting period for each number registered.
If your number is already on the list but you continue to receive telemarketing calls at home – or robocalls on your cell phone – you can use www.donotcall.gov to report the incident to the Federal Trade Commission.
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, credit card or license 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.
