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Legal Action Taken Against Credit Companies Using Predictive Dialers for Scam

TMCnews Featured Article


February 27, 2012

Legal Action Taken Against Credit Companies Using Predictive Dialers for Scam

By Jamie Epstein, TMCnet Web Editor


Indianapolis, Ind.,  has a lot more going on than just cleaning up after this year’s Superbowl, as five separate lawsuits were filed last week against phony credit service companies that were placing robocalls to consumers using both auto and predictive dialers.


According to Fox News, the Indiana Attorney General’s Office reported that unlucky consumers all over the country were being forced to deal with incoming calls from “Rachel at card member services,” which promised reduced interest rates on credit cards after paying a large fee. This initiated investigations on both the federal and state levels into the use of illegal robocalls. 

Teaming up to protect consumers from these costly scams, General Greg Zoeller revealed the attorney’s office had taken legal action against Consumer Credit Group (CCG) in Florida, the company behind the “Rachel” robocalls.

“The ‘Rachel’ dialer service provides leads to companies like Consumer Credit Group to generate business,” Zoeller said in a statement. “We hope this lawsuit translates into fewer robocalls to Hoosiers, but this will not be a cure-all. We believe there are numerous illegitimate companies that are paying for leads from the ‘Rachel’ callers. However, we will continue our aggressive efforts to find the source of the ‘Rachel’ calls and the companies that profit from them while victimizing Hoosiers.”

After a consumer received the call from “Rachel,” and they were then transferred to a live operator who claimed to work for CCG. However, a majority of these individuals had previously signed up for Indiana’s “Do Not Call” registry, which makes these unwarranted telemarketing calls against the law.

The Attorney General added that his office had received around 14,148 ‘”Do Not Call” complaints and out of those, 6,900 of those complaints were made in regards to calls received from credit card service companies. In fact, the office received 13 complaints against CCG specifically, and five of those victims ended up shelling out around $4,500 in the scam.

Some of the companies that have lawsuits now pending include Consumer Credit Group and Proactive Planning Solutions of Arizona, Debt Zero of California Clear, and One Advantage of Maryland and Credit Arbitrators of Texas.

Although predictive dialers were leveraged for these robocalls, this situation is a unique occurance. Typically this innovative dialer technology is utilized to get an important message out about a company or inform members of an organization about an important event. In the insurance business, SpitFire, a major provider of predictive dialers, can help increase growth rates and add millions to an Insurance agency’s bottom line. Insurance companies in most cases offer a complete suite of Insurance and financial products, thus selling many different types of insurance. So, in order to reach a large amount of people in a small amount of time and let them know all about the ins and outs regarding Long-Term Care Insurance, Group Healthcare, Defined Benefit Plans, 401ks, Deferred Compensation, Commercial Insurance, Life Insurance and Auto and Property Insurance and Insurance marketing solutions, they utilize predictive dialer solutions.




Edited by Tammy Wolf







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