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Beware of telephone scams

By David McDonough

Beware of telephone scams

It’s illegal. It’s deceptive. It’s costly. But getting “slammed” (having your long-distance telephone carrier switched without your permission) is becoming an increasingly common occurrence. Three of every five people surveyed by the National Consumers League report that they or someone they know has been a victim of slamming. Slamming ranks as the fifth most reported telemarketing incident by the National Consumers League. The growing number of slamming complaints suggests that this illegal practice costs customers more than $100 million each year. Current Federal Communications Commission (FCC) regulations state that it is illegal for a company to switch your long distance service without a signed (or verbal and verified by a third party) authorization form from the consumer. To avoid getting slammed and joining the above statistics, consumers must first understand how it happens.

How it happens

Scenario #1: A telemarketer may call and try to switch you to a different long distance carrier. Even though you say “no,” there is a possibility that the person will switch you anyway.

Scenario #2: A check may arrive in the mail. By signing and cashing this check, you may be signing up for a new long distance carrier.

Scenario #3: Entering a contest may give you a chance to win a car or trip, or even the surprise (in fine print) of a new long distance carrier as well.

Various other slamming scenarios exist, including small companies that buy telephone service from larger carriers, such as AT&T, at wholesale rates and then resell this service at a retail rate. These carriers may try to confuse customers by associating the large carrier’s name with their own service and rates, which is like trying to compare apples to oranges.

How to avoid it

You are already on the right track to side-stepping a “slam” by educating yourself. Simply being aware that slamming can occur is important. Always read the fine print to find out exactly what it is you are signing up for. In addition, be certain to: Know who your current long distance carrier is. Call your local telephone company to find out.

Keep an eye on your telephone bills to see if your carrier changes or if the charges for your long distance calls increase significantly. The FCC requires carrier charges to be “clearly and conspicuously” indicated on all telephone bills.

Call your local telephone company and request a “carrier freeze.” Currently, your local company will switch you whenever a request is made by a long distance carrier. A call to your local telephone company is currently the only way to block a switch without your direct consent.

If you have been slammed

Call your local telephone company immediately and notify them that you did not authorize the switching of your long distance service, ask them to switch you back to your original carrier. You are not required to pay any fees associated with switching back to your original long distance telephone company. Also call your long distance company and make them aware of the slamming. Ask the company to make sure your account is in order and that you will not be penalized with charges resulting from the slamming.

The FCC issued new slamming rules effective November 28, 2000. Once a slamming complaint has been verified by the FCC, consumers are guaranteed compensation.

Consumers who have been slammed and have not paid the unauthorized carrier, will not be responsible to pay for service for up to 30 days after the slam occurred.

Consumers who have been slammed and have paid the unauthorized carrier will receive a 50 percent reimbursement of all paid charges. The rules require the unauthorized carrier to pay 150 percent of all charges to your authorized carrier, which in turn is responsible for reimbursing you 50 percent of those same charges.

About the Author

Webmaster and owner of TheLowestRates.Com, LLC Your cheap residential long distance phone service internet and travel source.

How to Avoid Telemarketing Scams

By David McDonough

How to Avoid Telemarketing Scams

Offers of amazing investments and too-good-to-be-true offers are warning signs of telephone fraud. According to the Federal Trade Commission, telemarketing fraud now costs Americans at least $40 billion a year.

Some of the most common scams include:

Prize offers: The National Fraud Information Center lists prize or sweepstakes offers as the number one telemarketing scam. Usually you have to do something to get your free prize, such as buy products you don’t really want or give your credit card number, “just for verification.”

Cross-border telephone calls:

You receive a message on your voice mail or answering machine urging you to call a number in the 809 or other unfamiliar area code. The call may claim to concern an overdue account or a sick relative. In reality, the call is a fraud. You’re being asked to call a pay-per-call service in the Caribbean, similar to a 900 number, with charges that could exceed $25.

Travel packages:

Free or low cost vacations can end up costing you a bundle. Often the promoted travel deal requires you to pay hidden charges for either an expensive hotel room or for the full cost of travel for the second person.

Investments:

Consumers lose millions of dollars to telemarketed “get rich quick” schemes that involve gemstones, rare coins, oil and gas leases, interactive TV licenses and other business opportunities.

Recovery room ploys:

If you’ve fallen prey to any of the above scams, you could get a call promising to get back or “recover” the money you’ve already lost. Of course, this comes at a price.

How to identify telephone fraud

Beware, fraudulent telemarketers often feed their potential victims the same lines. If you hear one of the following messages the best thing to do is say “no thank you” and end the call.

Act Now – this offer is only good for a limited time

You must send money, offer a credit card or bank account number

He/she offers to have someone pick up the payment from your home

You’ve won a free prize or trip, all you need to do is take care of the “postage and handling,” or other miscellaneous charges

How to avoid a telemarketing scam

Do not buy from an unfamiliar company – If you are unfamiliar with the company or organization, ask that they send you information about the products or services it offers. The Attorney General’s Office and the Better Business Bureau are great resources to check a company’s licensing and consumer complaint record.

Do not be pressured into a decision – Even if the offer being presented to you has a time limit, don’t give in to the high-pressure tactic unless you are comfortable with the company and the offer. If you accept an offer because it is a “One time deal” or your “Last chance,” you are most likely to be left holding a bill.

Do not give out your credit card, social security number, checking account number or other personal information to unfamiliar companies. You would be surprised how little information scam artists need to make unauthorized charges or alter your financial identity.

Do put your name on the “do not call” list to prevent a telemarketer from calling you again. Go to this link  http://www.donotcall.gov  to add your number to the National do not call list.

Do keep a list of a company’s name and the date you requested to be put on its “do not call” list. Keep a list of those names and report telemarketers that continue to call you.

Do exercise your right to end a conversation with an individual representing an unfamiliar company or using pushy tactics to sell you a service or product.

Who to call for help:

If an offer sounds suspicious, or if you have been victimized by a fraudulent telemarketer, there are resources available to help you.

National Fraud Information Center 1-800-876-7060 (toll free)

Federal Communications Commission 1-888-225-5322 (toll free)

About the Author

Webmaster and owner of TheLowestRates.Com, LLC Your cheap residential long distance phone service internet and travel source.

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