Past Quotes Of The Week

Read anything interesting or outrageous from our wonderful friends in the telemarketing industry?  E-mail it to us! It may be our next "Quote Of The Week

February 28, 2010

"Since the launch of PrivacyStar just a few weeks ago, we’ve seen incredible growth in our user base and it’s clear that our customers are blocking callers, filing complaints and looking up numbers at record levels every day.  We are excited that now through our partnership with MobiHand, BlackBerry users in both the United States and Canada have a new way to take control of their phone."

Jeff Stalnaker, president of First Orion describing the features of their new product to stop unwanted calls to cell phones, Privacy Star.

PrivacyStar is a simple-to-use yet powerful privacy app that enables users to take complete control of their phones by reporting potential telemarketing violators to regulatory enforcement authorities, blocking any and all unwanted callers, using Caller Lookup to identify unknown callers and providing the flexibility to change their privacy preferences directly on the BlackBerry or on their own synchronized personal web portal account.

The new PrivacyStar app is the first and only mobile privacy app that helps authorities identify and locate potential telemarketing violators. PrivacyStar captures detailed information about possible violations including date, time, number and identity and allows the user to provide this information to law enforcement authorities for investigation.

The PrivacyStar app allows users to easily view all their information and make any changes through the application or through a personal web portal. The web portal is fully integrated and synchronized with the device and any changes made through either the portal or the device is automatically synched with the other.

PrivacyStar is free for the first 30 days and is available immediately for download. Following the free trial period, PrivacyStar is available for $2.99 (USD) per month. To download the PrivacyStar app visit: www.PrivacyStar.com, BlackBerry® App World or text myprivacy to 74700.

From TMC Net, First Orion's PrivacyStar Mobile App Available via MobiHand, February 22, 2010.  Mr. Stalnaker can be reached, via public relations department, at: (831) 401-3175.

CATS Comment:  What a cool idea!  The fact is that the U.S. Government has failed to control the telemarketing industry to the point that consumers are willing to PAY to be left alone.  Telemarketers view the fines, which are pennies on the dollar, as a cost of doing business.

Perhaps some cellular provider will include Privacy Star as an incentive to buy their service.

We, here at CATS, are going to keep an eye on this one.

February 21, 2010

"Idaho businesses should not be harassed by telemarketing companies offering a service and then threatening them with collection for a service they never purchased."

Idaho Attorney General Lawrence Wasden commenting about a New York website design company that telephone solicited Idaho businesses has been stopped from telemarketing in Idaho thanks to his efforts.

The settlement is the result of the Attorney General’s investigation of complaints received from Idaho businesses who received telephone solicitations from World Web Pages offering its website design services. The Idaho businesses claimed that World Web Pages did not obtain their consent to purchase a website, yet World Web Pages billed the Idaho businesses for monthly service fees. When the Idaho businesses attempted to cancel the unauthorized service, they were told that their accounts would be turned over to a collection agency.

The Attorney General’s Office alleged that World Web Pages violated the Idaho Telephone Solicitations Act, as well as the Idaho Consumer Protection Act. Telemarketers offering a service to individuals or businesses must be registered before soliciting in Idaho.

Without admitting any wrongdoing, World Web Pages agreed to immediately stop soliciting in Idaho. The company must register to telemarket before it may resume telephone soliciting in Idaho. The company also paid a $500 civil penalty and reimbursed the Attorney General Office for its fees and costs.

World Web Pages also canceled the accounts of the Idaho businesses that complained to the Attorney General. The settlement provides for a $20,000 civil penalty if the company fails to register and continues to call Idahoans

From the State of Idaho Attorney General's page, Wasden: World Web Pages.net Must Stop Telemarketing in Idaho, February 11, 2010.  Lawrence Wasden can be contacted, via his office, at: (208) 334-2400.

CATS Comment:  The National Do Not Call list prohibits calls to residents and cell phones, but businesses are still fair game to telemarketers, and fraud is the name of the game for many of these calls.

One business answers these calls by telling the caller that, in order to sell to that business, they have to be approved as a vendor.  They tell prospective vendors that they need to fill out a form and pay a $50.00 application fee in order for their application to be considered and investigated.  If they are approved, the $50.00 fee is refunded with the first order.

The telemarketer is then told, that they are now on a list, and if they call again they will be sued.

This is a brilliant strategy, and most telemarketers hang up and never call again.

February 14, 2010

"Both companies often used the insurance terms 'coverage, deductible, co-pay, premium' in order to further dupe and mislead consumers.  The companies would tell people things like 'we offer 80/20 coverage' or 'we pay 80, you pay 20'.

"With insurance premiums rising and health care reform stalled, health discount plans are filling the void. The problem is they don't provide the financial protection people need if they get sick."

Minnesota Attorney General Lori Swanson talking lawsuits she filed against two companies, alleging they exploited Minnesotans by misrepresenting health discount plans as traditional insurance.

The lawsuits target Direct Medical and Family Care, two Texas-based for-profit companies that sell plans designed to be used for discounts on prescription drugs and medical care by select providers.

Swanson said both companies turned down request from consumers to send printed materials before the sale was made. When consumers realized they'd been deceived, and asked to cancel their plans, the companies refused to refund their enrollment fees and premiums.

The attorney general said consumers are especially vulnerable to fraud now because so many people have lost their insurance coverage during the recession, either because they lost their jobs or their employers could no longer afford to offer plans.

A recent study by the University of Minnesota estimated the portion of Minnesotans without health insurance rose from 7.2 percent in 2007 to 9.1 percent in 2009.  More people are now on the open market trying to buy individual plans, which are especially hard to come by for those with pre-existing conditions.

Swanson noted that 58% of Direct Medical's customers cancelled their plans within the first month, and more than 95% of the 1,216 Minnesota consumers who signed up with Direct Medical since 2007 have since cancelled.

Similarly, more than 90% of the 3,411 Minnesota consumers who signed up with Family Care since 2004 have since cancelled, with 71% percent cancelling in the first six months.

Both lawsuits were filed in Hennepin County District Court and seek injunctive relief, restitution for consumers, and civil penalties

From KARE, channel 11 Minneapolis-St. Paul Minnesota, A.G. sues discount health care companies, February 11, 2010.  Attorney General Swanson can be reached, via her office, at: (651) 296-3353.

CATS Comment:  As usual, the insurance company denied the charges.  In a statement Gregg Trautmann, a New Jersey attorney who represents Direct Medical, told KARE Wednesday that a third party telemarketing firm is behind the problems.  He said Direct Medical's sales scripts make it clear that the limited medical discount plans are not traditional insurance.

Direct Medical's own investigation, according to Trautmann, led the company to believe that employees of United States Health Benefit Group, a telemarketing firm owned by Amacore, went "off the script" by telling prospective customers they would be getting a real insurance plan.

We, here  at CATS, would like to ask Attorney Greg Trautmann, if his client even checked out the telemarketing company they hired.  Did Direct Medical even ask for the telemarketing company's written "Do Not Call" policy as a test to see if the telemarketing company complied with the law?   We doubt it.

February 7, 2010

"The topics for our 2010 seminars will build on the successful events we’ve provided for the past five years to deliver the knowledge and awareness necessary for professionals to properly operate based on best practices supported by the ATA [American Teleservices Association]”

Tim Searcy, ATA chief executive officer telling TMC Net that The ATA will also be presenting updates on legislation and regulations at the ATA Washington Summit that is taking place April 25-28, 2010 at the Marriott Washington, in Washington, D.C. FTC (News - Alert) Commissioner David Vladek will give the keynote address. There will be sessions on self-regulation, the law in the contact center, legislating social media, and worldwide regulatory trends plus a 2010 preview on legislative and regulatory issues.

Corporate sponsors supporting this educational series are title sponsor Contact Center Compliance and supporting sponsors PossibleNow and Neustar. These companies have all demonstrated a long-term commitment, says the ATA, to the association’s educational efforts in the area of compliance.

The ATA will also be presenting updates on legislation and regulations at the ATA Washington Summit that is taking place April 25-28, 2010 at the Marriott Washington, in Washington, D.C. FTC (News - Alert) Commissioner David Vladek will give the keynote address. There will be sessions on self-regulation, the law in the contact center, legislating social media, and worldwide regulatory trends plus a 2010 preview on legislative and regulatory issues.

 Attendees will also have a chance to be heard at the Capitol Hill Legislators Reception. There will be a Knowing How to Lobby Breakfast and legislative visits by appointment only.

From TMC Net, ATA Telemarketing, Labor Regulations Compliance Education Series Coming to Six Cities, February 3, 2010.  Mr, Searcy can be reached, toll fee, at: (866) 500-4272 x103.

CATS Comment:  Tim is at it again.  Remember, the ATA used to be known as the American Telemarketing Association - Representing telemarketers; that is, unit the pubic went ballistic on the organization and jammed their phone lines.

Now the ATA acts like it is on the side of the consumer, but fear not, telemarketers are still up to their old tricks.

Most consumers are smarter that that, even though ATA hopes that they can still take advantage of the CON in CONsumer.

January 31, 2010

"Consumers across the country have complained about companies using shady telemarketing techniques to sell so-called extended vehicle warranties that failed to live up to their promises.   This settlement will force one of these companies to obey the law or quit doing business in Oregon.”

Oregon Attorney General John Kroger announcing a settlement last week with a Missouri company and its owners who were accused of falsely advertising the sale of motor vehicle service contract.

The Better Business Bureau gave Dealer Warranty Services an “F” rating based on more than 150 consumer complaints that the company used misleading sales or advertising practices; falsely claimed that it was associated with a manufacturer or dealer; refused to honor cancellation requests or provide refunds; consistently failed to cover needed repairs; provided poor customer service; and employed harassing sales calls and solicitations.

The Oregon Department of Justice received nearly two dozen inquiries and complaints about Dealer Warranty Services. Consumers complained about getting postcards and phone calls telling them that the manufacturers warranty for their vehicles had expired and that the company could extend it. Instead, Dealer Warranty Services sold motor vehicle service contracts provided by an independent third-party.

Some consumers reported that the motor vehicle service contracts did not live up to advertised expectations.

The settlement requires the company and its owners, Theodore B. Conrad and Jeffry E. Zykan, to pay $10,000 to the Oregon Department of Justice and restitution to Oregon consumers who have filed complaints. The settlement also includes injunctive terms that prohibit the company and owners from using illegal tactics that consumers complained about. Failure to abide by the terms of the settlement will result in an additional $10,000 payment.

The Oregon Department of Justice is also investigating similar claims against other companies purporting to sell “extended warranties.”

From the Portland Business Journal, ‘Extended warranty’ sellers settle with state, January 27, 2010.  Attorney General Kroger can be reached, via his office, at: (503) 378-4400,

CATS Comment:  Great job John.

What is our California Attorney General doing about the robo calls that continue to plague the State?  Oh, We forgot, He's running for Governor.

January 24, 2010

"These fundraisers manipulate sympathetic donors in order to raise money for the only cause they truly care about - themselves.  Exploiting generous New Yorkers, especially in these times of economic distress, is reprehensible, and we must put these operations out of business.  However, we cannot let a few rotten apples spoil the whole bunch.  As we continue to aggressively pursue fraudulent fundraisers, New Yorkers should feel even more confident in giving now."

Attorney General Andrew M. Cuomo announcing that announced that his office has filed lawsuits to shut down four professional fundraising companies that lie, manipulate, and deceive to get charitable donations.  During telemarketing calls, these four companies consistently violated New York laws by disguising their status as paid professional fundraisers and lying about the programs that the donations would support.

The lawsuits against the four companies - Caring People Enterprises, Inc., Marketing Squad, Inc., Stage Door Music Productions, Inc., and Suffolk Productions, Inc. - are part of the Attorney General’s ongoing initiative to fight fundraising scams and to make sure generous donations from New Yorkers are being properly collected and used.  Over the past three years, these companies have collectively reported raising $16 million.  On average, they keep seventy-six percent of the funds raised.

It is illegal to fundraise in New York using deceptive or misleading practices.  Anyone soliciting for charities in New York must, among other things, provide a clear description of the programs and activities for which donations are requested or state that such information is available from the charity, disclose the name of the professional fundraising company, disclose the name of the individual professional telemarketer, and disclose the fact that the telemarketer is being paid.

In addition, professional fundraisers are required to register and file reports with the Attorney General’s office. 

As part of the Attorney General’s investigation, undercover investigators secured jobs with fundraising companies, where they were trained to carry out fraudulent practices and where they observed employees making false statements to the public during phone solicitations. 

From Fox News, WICZ 40, Cuomo Sues to Shut Down Telemarketers for Charity Scams, January 10, 2010.  Attorney General Cuomo can be reached, via his office, at: (800) 771-7755.

CATS Comment:  Great job Andrew.  Going undercover was a great idea--and it worked!

In 1995 CATS founder Robert Arkow went undercover to a telemarketing convention with Dateline NBC and had similar results.  In the Dateline NBC segment, one predictive dialer salesman at the convention proudly exclaimed "We interrupt a quarter of a million dinners a night."

This was just after a spokesman for the telemarketing industry said that "We don't want to call anyone that does not want to be called."

It is interesting what happens when telemarketers don't think they are being watched.

January 17, 2010

"Sadly, we encounter these types of scenarios over and over again.  While it’s hard to believe people fall for ploys like this, you have to remember the telemarketing con artists are incredibly persuasive and they purposely prey primarily on the elderly, who tend to be more trusting."

Joseph Adiano,  an Inspector for the USPIS (United States Postal Inspection Service), telling how his agency, working with Investigators from U.S. Immigration and Customs Enforcement (ICE) returned $7,000 to an elderly San Jose couple victimized by Canadian con artists who told them they had won a multi-million dollar Canadian sweepstakes.

ICE and USPIS investigators handed the octogenarians a check for a portion of the funds they forwarded to a Canadian postal box over the course of the last several months. The money was ostensibly to pay the Canadian "luxury" tax on the sweepstakes winnings so they could collect the prize. Like many elderly victims targeted in this and similar telemarketing scams, the couple believed the man who called them last year claiming to be an attorney responsible for alerting them about their sweepstakes win. In response to repeated appeals, the couple mailed multiple cashiers checks and packages containing cash to various Canadian addresses.

This week marks the second time in as many months ICE agents have intervened in a case involving an elderly local resident targeted by Canadian telemarketing con artists. In November, they returned $4,000 to a San Jose woman who sent that sum in cash to Canada after receiving a call from a person claiming to be her grandson. The male caller said he was in jail and needed bail money immediately. Soon after, the woman received a call from a man purporting to be her grandson's attorney who urged her to send the money without delay. Only later did the women learn that her grandson was not in jail and never had been.

Initiated in 1998, the goal of Project COLT is to identify, disrupt, and dismantle telemarketing fraud operations. As part of the initiative, law enforcement officers strive to intercept funds - often cash and cashier's checks - so they can ultimately be returned to victims. Project COLT investigators also work to prevent further victimization, both through public education and the prosecution of those who commit the fraud.

Since its inception, Project COLT has resulted in the seizure and return of more than $25 million to telemarketing fraud victims in the United States and Canada. Telemarketing fraud has become one of the most pervasive forms of white-collar crime in Canada and the United States, with annual losses in both countries in the billions of dollars. These criminal organizations are heavily involved with international and violent organized crime, including the Hell's Angels motorcycle gang, and as such they represent a significant assault on the United States homeland and upon the financial security and livelihood of its citizens.

From the US Customs and Immigration web site, Feds return money to Bay Area elderly scammed by Canadian con artists, Investigators warn public to be wary of callers soliciting money, January 12, 2010.  Special Agent Adiano can be reached, via the US Postal Inspection Office in San Francisco at: (877) 876-2455.

CATS Comment:  Another story about senior citizens beng scammed and recovering some of their money.  According to the San Jose Mercury news,  one victim was an elderly lady in her 80's.  She lost $300,000 and the government recovered $7,000.

Because so many scams are delivered by phone, we here at CATS, warn you to be very careful when someone on the other side of the telephone line says that you are a winner.  If you really want to be a winner, take up a lot of their time and report then to the authorities.

January 10, 2010

"This couple was very fortunate that investigators were able to recover all of their money.  Unfortunately, that’s often not the case. While ICE and its enforcement partners are doing everything possible to stop this kind of fraud, the first line of defense is for people to be suspicious of anyone who calls and asks them to send money"

Wayne Wills, special agent in charge for the ICE [Immigration and Customs Enforcement] office of investigations in Hawaii commenting about action taken by special agents with U.S. Immigration and Customs Enforcement (ICE) Tuesday.  Their actions returned nearly $7,000 to an elderly Pauoa Valley couple victimized by Canadian con artists who told the pair the money was needed to aid a female relative who had run afoul of the law in Canada.

On January 5, 2010, ICE agents handed the octogenarians 10 money orders totaling $6,995. Four months ago, the couple sent the money orders to Canada after being contacted by an individual claiming to be an attorney for a distant family member purportedly arrested in that country on drunken-driving charges. In a series of phone calls, the couple also spoke with a woman they believed was a relative who said the funds were to pay her bail and related legal costs. She further claimed the attorney was holding her hostage until he received payment. The woman’s voice and pleas were sufficiently convincing that the couple forwarded the money orders as instructed. It was only later after speaking with the actual family member, who resides in Utah and advised she had never visited Canada, that they realized they had been scammed.

The money returned to the couple was recovered as part of Project COLT (Center of Operations Linked to Telemarketing), a bi-national effort involving numerous agencies, including: ICE, the FBI, U.S. Customs and Border Protection (CBP), the U.S. Postal Inspection Service, the Royal Canadian Mounted Police, and the Quebec Provincial Police.

Alert personnel from the Canadian Postal Service and CBP, who routinely inspect suspicious parcels believed to contain fraudulent telemarketing funds, intercepted the money orders and coordinated with ICE to arrange their return. The case is under ongoing investigation by Canadian authorities.

ICE agents say that while the ploy used on the local couple is somewhat unusual because it was highly personal, it is quite common for Canada-based telephone fraudsters to target senior citizens. One of the most frequent scams involves telemarketers posing as “customs agents” who tell victims they have won the Canadian lottery but must send a “processing fee” or “customs duty” before they can collect their winnings.

Initiated in 1998, the goal of Project COLT is to identify, disrupt, and dismantle telemarketing fraud operations. As part of the initiative, law enforcement officers strive to intercept funds – often cash and cashier’s checks – so they can ultimately be returned to victims. Project COLT investigators also work to prevent further victimization, both through public education and the prosecution of those who commit the fraud.

Since its inception, Project COLT has resulted in the seizure and return of more than $25 million to telemarketing fraud victims in the United States and Canada. Telemarketing fraud has become one of the most pervasive forms of white-collar crime in Canada and the United States, with annual losses in both countries in the billions of dollars. These criminal organizations are heavily involved with international and violent organized crime, including the Hell’s Angels motorcycle gang, and as such they represent a significant assault on the United States homeland and upon the financial security and livelihood of its citizens.

From a press release from US Immigration and Customs Enforcement in Hawaii, ICE returns money to elderly couple targeted by Canadian con artists, Agency warns public to be wary of callers soliciting money, January 7, 2010.  Mr. Wills can be reached, via his office, at: (808) 532-3746.

CATS Comment:  Its nice to see that the victims got their money back.  That does not happen too often.  Perhaps the State of Hawaii has a bit of paradise, thanks to you Wayne.  Mahalo.
(Mahalo means goodbye and thank you in Hawaiian.)

January 3, 2010

"Every year it [complaints about telemarketing] seems to go up some but that was quite a significant increase.  I don't know if we can attribute that to the poor economy; people are a little more concerned about being taken or maybe telemarketers are working harder to try to earn money. I'm not really sure but that is quite an increase."

Florida Department of Agriculture spokeswoman Liz Compton commenting about the fact that The Florida Department of Agriculture and Consumer Services has compiled the top 10 list of complaints that were received in the past year. For the fifth year in a row, complaints involving violations of the Do Not Call List made the top spot.

There were more than 6,500 complaints filed in 2009 about unsolicited phone calls from people on the state's Do Not Call list. That's 1,500 complaints more than in 2009. The agency says it's hard to say whether the economy is to blame for the increase.

Under state law, Floridians can pay an initial fee of $10, with a $5 annual renewal fee, to have their home and cell telephone numbers placed on the list and avoid unwanted sales calls. Fees collected go towards administration of the Do Not Call List.

Anyone caught violating the Do Not Call List can pay hefty fines.

The complaints to Division of Consumer Services can range anywhere from telemarketing scams, problems with vacation and travel deals, motor vehicle sales, auto repairs, banking and finance, to real estate disputes.

The department's Division of Consumer Services regulates 11 industries but also attempts to mediate problems consumers have with unregulated businesses. A total of 37,881 complaints were filed in 2009.

From CBS TV 4 WFOR's web site, Unwanted Phone Calls Floridians' #1 Complaint, December 30, 2009.  Ms. Compton can be reached, via her office, at: (850) 488 - 3022.

CATS Comment:  WOW! People in Florida actually PAY to avoid telemarketing calls.  Considering the fact that there are so many illegal calls made and the complaints are so high, we here at CATS, wonder if they are getting their money's worth.  After all, you can get on the Federal "Do-Not-Call" list for free, so why should anyone have to pay money to get on the Florida list?

CATS wishes all a happy and telemarketing free new year.

 

Quotes from 2009