December 27, 2009

"Missourians who register with our No-Call list do so with the reasonable expectation that unsolicited, harassing calls will be substantially reduced,  This office is committed to vigorously pursuing every telemarketer who violate our No-Call laws."

Missouri Attorney General Chris Koster talking about his lawsuit against a California telemarketing company he says ignored the state's Do No Call list.

 Koster filed suit against Credexx Corporation, d/b/a Auto One Warranty Specialists, based in Irvine, California. Koster said telemarketing calls were made to consumers in an attempt to sell products described as automobile warranties. A number of consumers complained to Koster's office that they had registered with Missouri's Do Not Call List.

Koster said he is asking the court to stop Auto One Warranty Specialists from making calls to Missourians on the No-Call list who have no established business relationship with the companies. He said he is seeking the maximum civil penalties for each violation of the law, in addition to the costs of the investigation and prosecution and all court costs.

Koster said he is cracking down on businesses that market auto service contracts and auto additives as warranties. In November, he filed suit against six businesses for tactics he says they were using to try to trick people into purchasing bogus auto warranty products of limited value.

From Consumer Affairs.com, Missouri Sues California Auto Warranty Telemarketer, Company allegedly ignored state's Do Not Call List, December 14, 2009.  Attorney General Koster can be reached, via his office, at: (573) 751-3321.

CATS Comment:  Let see if we have this straight.  A company is California is making illegal pre-recorded sales pitches all over the US, and the Missouri Attorney general takes action.

Where is our California Attorney General, Jerry Brown?  Oh-we here at CATS forgot, he is busy running for Governor.

December 20, 2009

"This bill is an important means of preventing identity theft and ensuring the privacy of our citizens while allowing continued disguises of a caller's identity for privacy or other legitimate purposes."

US Congressman Bobby Scott (D-Virginia) talking about the fact that the US House of Representatives passed the Preventing Harassment through Outbound Number Enforcement Act of 2009 or "PHONE Act", a bill sponsored by Congressman Robert C. "Bobby" Scott (VA-3) by a vote of 418 to 1.

The PHONE Act would provide federal criminal penalties for certain types of caller ID spoofing, which occurs when a caller uses a false caller ID during a telephone call in order to hide the caller's true identity.  The bill would prohibit the use of false caller ID information in order to wrongfully obtain anything of value.  The bill would also prohibit the use of a person's caller ID without their consent and with the intent to deceive the recipient of the call.

The bill would not affect legitimate business or personal disguise of one's true caller ID.  Use of a single number or name for multiple callers, "Private Caller", or other disguises where there is no purpose to wrongfully obtain something of value from the person called or where it is not a knowing use of an actual person's caller ID with intent to deceive another, would continue to be legal.

In recent years, spoofing has become more commonplace, leading to increased security vulnerabilities and identity theft.  Spoofing technology has become readily available, either through the purchase of Internet telephone equipment or through Web sites specifically set up to spoof.  Because caller ID spoofing can make a call appear to come from any phone number, it has the ability to cause fraud, damaged credit and financial ruin.  Call recipients sometimes divulge personal and private information to the spoofer, under the mistaken belief that it is a legitimate call.

From a press release on the Congressman's web site, House Passes Rep. Scott’s PHONE Act, December 16, 2009.  Representative Scott can be reached, via his office, at: (757) 380-1000.

CATS Comment:  While we, here at CATS, commend Representative Scott for his bill that outlaws caller ID spoofing to deceive the recipient of the call, we wonder how enforcement of the law will happen since the US has hit hard economic times.

Perhaps the good Congressman should add a private right of action, including the costs of discovery, thus allowing the private citizen and private industry to enforce the law.

While his bill is an nice Christmas present, it does not allow for enforcement.  And speaking about Christmas, we, here at CATS, wish you a very merry and telemarketing free Christmas holiday.

December 13, 2009

"So many charities are seeking donations at this time of year it can be confusing.  It’s wise to take your time and get enough information to make sure your money will help the cause you want it to.

"Never give in to pressure tactics from any fundraiser. Before writing a check or giving out a credit card number, ask the agency to send written documentation of their nonprofit status, how the money is spent, etc.  Legitimate charities are always happy to provide this. Scammers are seldom heard from again."

Monica Horton, executive director of the Better Business Bureau (BBB) of North Central Texas commenting on the increase of charity fraud that happens every holiday season.

A recent telemarketing push in the Wichita Falls area brought on a wave of calls to the BBB, Horton said. Although the charity had a local connection, on closer inspection it turned out the telemarketing firm would receive 75 percent of all donations made in response to their calls.

Consumers can also be assailed by phone or mail pitches from sham organizations using names that sound like known charities.  It is up to the consumer to check these organizations out.

From the Times Record News of Wichita Falls Texas, BBB warns of holiday charity scams, December 8, 2009.  Ms. Horton can be reached via the BBB, at: (940) 691-1172.

CATS Comment:  One thing that Ms. Horton forgot to mention is that most charities "rent" their lists of donors to other organizations so they can also solicit you by phone for money.  The logic is that if you gave to one cause, you probably will give to other causes.

So if  you want a telemarketing free holiday season, when the telemarketer calls, tell them that you suffer from the affliction that they are telemarketing for and ask the caller for help.  Waste their time for a minute or two and they will go away.

December 6, 2009

"North Dakota subscribers have made it clear to me that the illegal prerecorded messages are irritating, and violations should be aggressively prosecuted.

"AFFPA’s absurd argument smacks of a desperate attempt to avoid complying with state law so it can use its vast financial resources to inundate North Dakota telephones, answering machines and cell phones with pre-recorded political messages.  I will vigorously enforce North Dakota’s restrictions on prerecorded messages whether it’s political, questionable automotive warranty, or other illegal calls."

North Dakota Attorney General Wayne Stenehjem stating to the media that he has filed a response with the Federal Election Commission (FEC) opposing efforts by a federal political committee to preempt North Dakota’s laws prohibiting Political pre-recorded telephone messages.

On October 13, 2009, America Future Fund Political Action (AFFPA) asked the Federal Election Commission (FEC) to decide whether the Federal Election Campaign Act (FECA), which regulates the activities of federal political committees, supersedes state restrictions on pre-recorded telephone calls, known as “robocalls.” AFFPA wants to use robocalls as part of a nationwide political campaign. However, North Dakota’s law prohibits robocalls even for political purposes. AFFPA is seeking an opinion from FEC that it should not have to comply with state law restrictions on the use of prerecorded messages and robocalls.

AFFPA argues that the North Dakota’s law limits federal candidate expenditures, an area it claims is regulated solely by federal law, because it restricts a federal political committee from spending money on prerecorded messages. Stenehjem’s response makes a clear legal argument that North Dakota’s law is not preempted by the Federal Election Commission because FECA supersedes state law only with respect to election to Federal office.

Stenehjem’s response also reminds the Federal Election Commission that North Dakota’s law regulating the use of prerecorded messages and robocalls is a consumer protection statute enacted to protect consumers’ privacy, including residential privacy, the peaceful enjoyment of the home and the well-being and tranquility of the community.

From a press release from the North Dakota Attorney General's office, North  Dakota Law Banning Robocalls Is Under  Attack, November 25, 2009.  Attorney General Stenehjem can be reached, via his office, at: (701) 328-2210.

CATS Comment:  You rock Wayne!  We don't even have a law here in California banning political robo-calls.  Too bad our California Attorney General, former Governor Jerry "moonbeam" Brown is busy considering running for Governor again.

We belive that you are right.  The courts have generally held that Federal Laws set a "minimum standard" and thus, the states are free to pass laws that apply greater protections than the Federal law invokes.

Could we convince you to move to California and run for Attorney General here?

November 29, 2009

"They're stealing.  They're taking money out of people's pockets who think they're helping New York City police officers and that's simply wrong."

Al O'Leary, communications director of the New York City Patrolmen's Benevolent Association, a union of about 50,000 police officers, telling how he gets a phone call at home about twice a year from people raising money in behalf of New York City police officers. When O'Leary tells them who he is, he said, they invariably hang up.

Why does he hang up?  It seems that the Benevolent Association never makes phone call solicitations and although O'Leary can't verify that the caller is running a scam -- there are other police unions in the city besides the PBA, he said -- he finds the hang-ups suspicious.

A few times, he said, he asked the callers to send him information about their fundraising efforts and they never did. 

O'Leary can't help but assume the worst.

As Americans begin to plan their year-end charitable donations, some government officials and charity watchdog groups are warning consumers to protect themselves by avoiding phone contributions. Some charity solicitation calls, officials say, are downright scams -- like the kind O'Leary believes he has faced -- while others really do represent legitimate charities and nonprofit groups.

But donating to legitimate, professional fundraisers also has a potential downside: Often, only a small percentage of the donations collected are passed directly to the charities. The rest is used to pay the for-profit telemarketers who make solicitation calls on behalf of charities.

From ABC-TV News, Beware Charity Phone Calls, Donations Provided Over the Phone Generate Surprisingly Little for Charitable Causes, Nov. 25, 2009  Mr. O'Leary can be reached, via the police union office, at: (212) 349-7560.

CATS Comment:  When we, here at CATS, get a call for a police charity we ask the caller if the donation will help secure our (fictitious) brother's release from jail.  They usually hang up.  Perhaps you should do the same.

November 22, 2009

"Especially in this tough economy, it is essential that New Yorkers understand where every penny is going when giving to a charity,"

New York Attorney General Andrew Cuomo talking about a report issued by his office called "Pennies for Charity, Where Your Money Goes: Telemarketing by Professional Fund Raisers.”

According to the report, telemarketers raised a total of $204.8 million on behalf of 444 New York charities in 2008. In total, $123.9 million, or approximately 60.5 percent, was paid to the telemarketers as profits, fees and other costs of the campaigns leaving charities with less than 39.5 percent of the money actually raised for their causes. The report looked at 584 fundraising campaigns.

Other findings in the report:

•In over 80 percent of the “fundraising” campaigns, the charities kept less than 50 percent of the funds raised.

•In nearly half, charities received less than 30 percent of the funds raised.

•In only seven percent of the campaigns did the charity retained at least 65 percent of the money raised, the amount deemed acceptable under the Better Business Bureau’s standards for charitable organizations.

•In 42 of the campaigns, charities actually lost money.

Attorney General Andrew Cuomo is urging nonprofits to find other means of fundraising.

Cuomo also launched a new on-line search tool where potential donors can find out how much of their donations actually went to the respective charitable organizations. The Web site is: http://bartlett.oag.state.ny.us/pfc.  Interested parties may also mail the Charities Bureau directly at charities.bureau@oag.state.ny.us or call 212-416-8401 for information about specific nonprofits.

From The Business Review (Albany, NY), Cuomo: Telemarketers big winners in charity fundraising, November 16, 2009.  Attorney General Cuomo can be reached, toll free, via his office, at: (800) 771-7755.

CATS Comment:  What a great idea, Mr. Cuomo.  This allows us to make an intelligent decision about giving to a charity telemarketer.

Too bad our California Attorney General, Jerry Brown, doesn't do this.  It seems that he is too busy running for Governor.  Californians will have to fend for themselves. 

November 15, 2009

"If you're a candidate without very much money, you can do an automated call from anywhere for 5 to 8 cents, depending on how long the call might be.  Add a live operator to it, and you might have to pay a dollar."

Nick Ryan, a spokesman for the American Future Fund commenting about their request by their political action committee to the Federal Election Commission (FEC), to override portions of a 1987 Minnesota law that curb "robocalls," saying the restrictions infringe on federal laws overseeing campaign finance.

The state law requires campaigns to use live operators to introduce automated calls and get the consent of the person answering the phone to play them -- conditions that effectively discourage the practice.

Opponents of lifting the state restrictions have until Thursday to contact the FEC, which is scheduled to issue an opinion by the end of December.

The FEC can't nullify state law but has power to issue advisory opinions about the legality of campaign practices in federal races. An opinion favorable to the American Future Fund could give it and other groups a green light to conduct automated calls for federal candidates in Minnesota without a live operator or the consent of the person answering the phone. It would not have an effect on state races.

From the Minnesota Star-Tribune, On the line: State law curbing 'robocalls', A political group wants the FEC to override Minnesota's rule that requires campaigns to use live operators, November 8, 2008.  Mr. Ryan can be reached, via The American Future Fund, at: (515) 720-5250.

CATS Comment:  The reality is that most people do not know the law regarding the use of pre-recorded robocalls, and as such, they think the call is illegal.  If you are running for office and make, what the voter thinks is an illegal call, it is more likely that you will leave the voter with a bad opinion of your candidate.  In short, robocalls make more enemies than friends.]

Won't politicians ever learn?

November 8, 2009

"It looks like they [IBG] should be registered and that would make them in violation of the law.  Because we are aware of it, we are looking into the matter."

Mark Leyes, a spokesman for the California Department of Corporations commenting about telemarketing calls and high return investment offers made by a company called International Banking Group [IBG].

IBG lists 12 U.S. banks and several international institutions as the banks that supposedly issue the high-interest CDs, and claims that since its retail division was founded in 2008, the company has serviced over 35,000 new accounts worldwide.

But five of the seven banks contacted by ConsumerAffairs.com said they have never heard of IBG and at least one of them is in the process of seeking legal action because they claim that IBG uses their logo without permission. And state officials in California, where the company claims to have a Beverly Hills office, opened an inquiry after ConsumerAffairs.com asked questions about the registration requirements for corporations operating in the state.

Harry T., of Camarillo, Calif., also received a brochure after getting a cold call from a salesman. The 92-year-old man, who lives in a retirement community, turned the brochure over to his son, an attorney, and said that other Leisure Village residents had also been contacted. Both asked that their names not be published. The son checked out the Beverly Hills office and found that it was a short-term "executive suites" operation that offers mail-forwarding for clients wanting to appear to have an established operation.

Until recently, IBG’s Web site, www.ibgmutual.com, listed an array of awards, including “Best Worldwide Private Bank in Western Europe” and “Best Private Bank in the United Kingdom,” both supposedly awarded by The Economist in 2008 and 2007, respectively.

But Sal Genna, an executive with the London-based magazine, said: “The awards that IBG claims on its Web site to have received from The Economist were not awarded to IBG by The Economist.”

The site, which was created on June 18, 2009, according to registration data listed at HostMonster.com, is now "under construction" and not accessible for view. HostMonster.com said the site administrator is Jason Santos, who listed an address in Singapore.

ConsumerAffairs.com contacted seven financial institutions in the U.S., Canada and Great Britain. JP Morgan Chase, Citibank, Royal Bank of Canada and Wells Fargo said that they have no relationship with IBG.

From ConsumerAffairs.com, 'High-Return' Investment Schemes Target Affluent Seniors, International Banking Group's ultra-high-interest claims can't be verified, November 2, 2009.  Mr. Leyes can be reached at: (916) 322-7180.

CATS Comment:  Where is our Attorney General, Jerry Brown, on this one?  OH!--We forgot, he is busy running for Governor.

Californians will have to fend for themselves on this one.

November 1, 2009

"These fines are the result of the general public reporting violations and our staff diligently investigating each case and pursuing the violators.  These cases are just a small fraction of the total number of cases my office is currently investigating, and I thank the general public for reporting these cases to us."

Mississippi Public Service (PSC) Commissioner Brandon Presley telling that the PSC has issued a fine totaling $455,000 to SVM Incorporated and Mike Moneymaker of Sparks, Nevada for violations of the Mississippi No-Call law. Presley said the fines were the result of a PSC investigation into telemarketer calls made to residents across Mississippi over the past several months.

Presley added that the fine to SVM Incorporated and Mike Moneymaker is the largest fine amount ever levied by the PSC to a telemarketer. has filed a formal complaint against SVM Inc. and Mike Moneymaker, both of Sparks, Nevada, for alleged violations of Mississippi's No-Call Law.

The PSC alleges in its complaint that the company made unsolicited telemarketing "robo-calls" to Mississippians registered on the state's No-Call List.

From a press release by the PSC, Presley Announces $455,000 in Fines for Auto-Warranty Telemarketer Largest Fine Ever Levied by the PSC for No-Call Violations, October 29, 2009.  Mr. Presley can be reached, via his office, at: (800) 637-7722.

CATS Comment:  Go get 'em Brandon.  While the fine may be the greatest in Mississippi's history, we here at CATS wonder what the fine per call really was, when you consider the millions of calls that the phoney auto warranty companies made.

At least you are doing something about this.  Here in California, our Attorney General, Jerry "moonbeam" Brown, is too busy running for Governor to bother with the robo callers that invade the privacy of California residents.

October 25, 2009

"My big concern is that the Hudson Fire Department is a very professional organization and the public puts trust in us. And because of misleading statements sometimes made by these telemarketers, our taxpayers can develop a very negative perception of the Fire Department through no fault of our own."

Hudson New Hampshire Fire Chief Shawn Murray explaining why a contract with All Pro Telemarketing was cancelled by the firefighter's union in Hudson when it was discovered that some of the telemarketers were identifying themselves as Hudson firefighters.

Lt. Jim Paquette, union representative for the Professional Firefighters of Hudson Local 3154, said the telemarketing company, All Pro Productions Inc. of Waltham, Mass., will not be rehired for the union's fundraising drive next year.

The fundraising campaign, which ended last Friday, was the second year of a two-year contract with Local 3154.

Paquette said he would have had no problem with telemarketers identifying themselves as calling "on behalf of" the union.

Paquette said money raised is spent on charitable activities, including paying for glow sticks firefighters traditionally give out on Halloween, sponsoring a softball team, building wheelchair ramps for handicapped residents, and contributing to a northern New Hampshire winter-blanket drive.

All Pro CEO John Dumas said the Hudson campaign involved thousands of calls, "and we didn't get any complaints until near the end." He said he hopes to speak with Paquette and "win back" the union's business next year.

All Pro came under scrutiny in 2007 when WCVB-TV reported All Pro telemarketers identified themselves as police officers and applied pressure tactics to obtain donations. Further, the station reported the company, on average, keeps 63 percent of the money donated, while only 37 percent goes to the charities.

From the Sun Newspaper in Lowell MA., N.H. Union Ends Telemarketing: Caller Posed As Fake FF, October 23, 2009.  Chief Shawn Murphy can be reached, via the Hudson Fire Department, at: (603) 886-6021.

CATS Comment:  This does not surprise us here at CATS,  We have seen this sort of thing before.  What should really scare these police and firefighter charities using telemarketing is that some telemarketing companies use prison labor to make the calls.

Our advice, waste their time, for example, if the caller claims to be a police officer, ask him a question about a traffic ticket, and be sure to waste their time.

Remember our motto here at CAT's: "No law, statute, rule, or ordinance will stop telemarketers as effectively as the law of economics. When they don't make any profit, the calls will stop."

By wasting just a minute of their time, you will emerge victorious against the intrusive caller. 

October 18, 2009

"We stopped the call as soon as we heard it had been released.  I like Sue, I think she's a great lady. The people who released the robo-call made a bad mistake on their part."

Joe Messina, a candidate for the William S. Hart School Board telling the Signal Newspaper that that the robo calls were not intended to be released until after he had verified the accuracy of the phone message.

The automated call was Messina's response to a mailer sent out by opposing candidate Susan Solomon this week that listed Strickland's endorsement and showed her sitting next to McKeon.

The call also said the flier misled readers into thinking Solomon had been endorsed by the Republican Party. 

Bob Haueter, chairman of the local Republican Party, said the flier did not seem misleading and that the party had nothing to do with the auto calls.

Solomon said the calls have degraded her personally as a sitting board member of the Newhall School District. She said the calls were Messina's "desperate attempt to win a school board seat."

From the Santa Clarita Signal Newspaper, Candidates at odds over robo-calls, Solomon says Messina’s phone calls are unfair campaigning, October 16, 2009.  Candidate Messina can be reached at: (661) 257-9250.

CATS Comment:  Hey Joe, in case you don't know, robo calls are illegal in California, unless they are announced by a live person!  To see what the California Public Utilities Commission says click here.

As a candidate for school board, you need to learn your lesson.  Perhaps an angry consumer or your opponent will sue you, or you just might do the right thing and cancel your contract with the robo call company.

It is obvious that you need some education.

CATS has filed a complaint with the California PUC.  We will keep you informed.

October 11, 2009

"My advice in dealing with telemarketers: Speak to them in a foreign language, preferably one you just made up. If they ask, 'How are you today?' tell them your dog just died. If you're a male and the caller is female, ask in a husky voice, 'So, what are you wearing?'  Imitate a recorded message saying you'll be released from prison soon.  If that fails, one wag suggested telling the caller that they have reached a murder scene, you are a detective, the person they are calling is dead and you want to know exactly how they know the victim"

Robert Rector, a former editor with the Pasadena Star-News and Los Angeles Times telling how he deals with telemarketing calls.

According to Rector, history tells us that the first words ever spoken over a telephone were courtesy of its inventor, Alexander Graham Bell, who said to his assistant listening in the next room, "Mr. Watson, come here. I want to see you."

Rector suspects that history's second telephone conversation went something like this: "Mr. Bell, I'm calling on behalf of the Society to Eliminate Nose Hair. As you know, Mr. Bell, nose hair strikes thousands of adults in their prime, causing public displays of picking and plucking that are intolerable in this enlightened era. Remember, Mr. Bell, a nostril is a terrible thing to lose. Help us stamp out nose hair by giving us a generous donation. How much can I put you down for?"

According to Rector, Mr. Bell was long gone when telemarketing was inflicted upon an unsuspecting public. Some suggest that in the 1950s, DialAmerica Marketing, Inc. became the first company completely dedicated to telephone sales and services. The company, spun-off and sold by Time, Inc. in 1976, became the largest provider of telephone sales and services to magazine publishing companies.

From the Pasadena Star-News (CA) Robert Rector: Telling dollar-dialers your own tall tale, October 3, 2009.  Mr. Rector can be reached, via the Pasadena Star-News, at: (626) 578-6300 x2479.

CATS Comment:  How true Robert!  The best thing that we can do the the annoying callers is to spend at least one minute of their time in complete BS.

If everyone receiving a telemarketing call wasted just one minute of the telemarketer's time, the industry would grind to a halt.

October 4, 2009

"We hold our customers' information to the highest standards of confidentiality, but there will always be predators who misrepresent themselves to try to take advantage of you,"

John Komeiji, senior vice president and general counsel for Hawaiian Telecom waring subscribers that a telephone scam is hitting the island.  Hawaiian Telcom is warning customers to be wary of calls from telemarketers who claim to offer long distance services on behalf of the company.

That's after callers who identified themselves as being from "US Telcom" or "Global Crossing" also misrepresented themselves as agents of Hawaiian Telcom authorized to sell long-distance plans.

A spokeswoman said Hawaiian Telcom does not make unsolicited contact to sell long-distance plans, nor does the company authorize others to sell long distance plans on our behalf. These solicitors also request personal information, such as birth dates and Social Security numbers, which Hawaiian Telcom would not.

From the Honolulu Advertiser, Hawaiian Telcom warns of another telemarketing scam, September 30, 2009.  Mr. Komeiji can be reached, via Hawaiian Telecomm, at: (808) 643-7111.

CATS Comment:  There's trouble in paradise these days.  Where is Hawaii 5-0 when  you need them?  According to the law, if they arrest a suspect or suspects, they have the right while in custody of making a telephone call.  But hold on...Isn't that how they got in trouble in the first place?

All we here at CATS can say is "Book 'em Dano."

September 27, 2009

"This FTC (Federal Trade Commission) action to reduce robocalls is great news for consumers who feel they are being bombarded with these automated phone calls.

“Lack of clear identification is simply the first deception by many these automated calling companies.

“Some companies behind robocalls also may be ripping off consumers by charging large up-front fees to negotiate lower interest rates with credit card companies—something consumers can do on their own for free,” said Bernas. “It’s very important to look up any company you do business with on bbb.org and review their Report to help prevent getting ripped off.”

Steve J. Bernas, president & CEO of the Better Business Bureau serving Chicago and Northern Illinois commenting about The Federal Trade Commission (FTC) announcement that on September 1st these prerecorded commercial telemarketing calls (robocalls) to consumers will be prohibited, unless the telemarketer has obtained permission in writing from consumers who want to receive such calls.

This now means that sellers and telemarketers making robocalls to consumers who have not agreed in writing to accept such messages will face penalties of up to $16,000 per call. These new rules, however, do not prohibit calls that deliver informational recorded messages such as flight cancelations, delivery notices, or certain healthcare messages; robocalls from politicians, banks, telephone carriers, and most charitable organizations will also still be legal.

From a press release from the Chicago Better Business Bureau, Chicago Office of the Better Business Bureau Warns Consumers of Robocalls Promising to Lower Their Credit Card Interest Rate, September 23, 2009.  Mr. Bernas can be reached, via the Better Business Bureau, at: (312) 832-0500.

CATS Comment:  Not so fast, Mr. Bernas.  With the FTC settling violations for pennies on the dollar, robocallers will soon figure out that it is cheaper to risk a minor fine than hire real telemarketers to hawk their wares.  If the BBB really wants to stop robocalls then the BBB should pressure Congress to provide a private right of action for violations of the Telephone Sales Rule (TSR).  Currently, under the TSR, a consumer can only file suit if the telemarketer causes more than $50,000 in damages.  Good luck claiming that over a car warranty call.

September 20, 2009

"The FTC (Federal Trade Commission) has taken legal action to put an end to this company’s deceptive and harassing robocalls.  Starting today, the Commission will be going even further, enforcing a new rule adopted a year ago that makes these prerecorded commercial calls illegal.”

Jon Leibowitz, Chairman of the FTC taking about a proposed settlement with Transcontinental Warranty, Inc over the thousands of robo-telemarketing call that they made.

The company and its owner will be permanently banned from making any prerecorded calls like the ones it used previously to trick consumers into buying vehicle service contracts under the guise that they were extensions of original vehicle warranties.

Transcontinental Warranty is one of several companies behind the auto warranty scam that the FTC sued in response to a flood of complaints about the robocalls, which used random, prerecorded voice messages to deceive consumers into thinking that their vehicle warranties were about to expire. The agency also has filed a complaint against the telemarketers who made the prerecorded calls, Voice Touch, Inc., Network Foundations, LLC, and Voice Foundations, LLC, as well as their three principals. That case is still pending in federal court. The court has barred the defendants from making any further deceptive robocalls until the litigation is resolved.

Under the proposed settlement announced today, Transcontinental and its owner, Christopher Cowart, will be barred from the deceptive tactics they used to sell its vehicle service contracts. The defendants also will be prohibited from selling Transcontinental’s customer lists or trying to collect money from people who were victimized by the scam. In addition, they will be required to cooperate in the FTC’s ongoing investigation of the related case. The proposed settlement includes a $24 million judgment against the defendants, which is suspended because of their inability to pay. If the defendants have lied about their assets, the order requires them to pay the full judgment.

From a press release from the FTC, FTC Settlement Bans Robocalls from Auto "Warranty" Company,  September 1, 2009.  Mr. Liebowitz can be reached, via the FTC, at: (202) 326-2334.

CATS Comment:  So let's recap.  The FTC fined a lawbreaker 24 million dollars and then, in a plea bargain the fine was suspended because of an inability to pay.   So how come we can't do that with traffic tickets?

It is nice to see our Federal Law enforcement hard at work. 

September 13, 2009

"We allege the company misrepresents information when they contact consumers.  The company tells consumers that their vehicle warranty is about to expire whether it's true or not.  They even try this ploy with consumers who don't have a vehicle warranty. We also believe the warranty the company is selling doesn't deliver as promised.

"We allege C1F's solicitations are knowingly false and misleading and that the company is illegally using an autodial device to contact Oklahomans who are registered on our Don't Call list.  We also allege the company is not registered to make telemarketing calls in Oklahoma."

Oklahoma Attorney General Drew Edmondson saying that his office is asking an Oklahoma court to stop a Florida telemarketer from offering potentially bogus products to consumers and from violating Oklahoma telemarketing laws.

Edmondson accuses C1F Marketing of employing unfair and deceptive trade practices in the marketing of vehicle warranties and of violating numerous state telemarketing laws.

The attorney general alleges C1F is calling Oklahoma consumers warning that their automobile warranty is about to expire.

The Clearwater, Fla., company is also accused of violating the state's Do Not Call and automatic dial laws and of operating in the state without registering as a commercial telephone seller as required by statute.

The suit asks the court to permanently enjoin the company from conducting these illegal operations in Oklahoma and seeks civil penalties, costs and expenses. Edmondson also today filed an application for a temporary injunction to stop the allegedly illicit activity pending the outcome of the lawsuit.

Earlier this month the Federal Trade Commission proposed a settlement with Transcontinental Warranty, Inc., stopping it from using robo callers to make warranty pitches to consumers. Under the settlement, the company its owner will be permanently banned from making any prerecorded calls like the ones it used previously to trick consumers into buying vehicle service contracts under the guise that they were extensions of original vehicle warranties.

From Consumeraffairs.com, Oklahoma Sues Car Warranty Telemarketer, Latest state to take action, September 6, 2009.  Attorney General Edmondson can be reached, via his office, at: (405) 521-3921.

CATS Comment:  Good luck Drew.  These companies knew that they were breaking the law, and have probably hidden their money off shore already.  We wish you luck.

Consider the case of Fax.com.  When the hammer finally fell, and the FCC fined them 5 million dollars (the largest fine for a telemarketer in U.S. history) they were nowhere to be found and the FCC didn't collect one red cent.  We suspect that they "stiffed" their lawyers as well.  Nice people 'eh?

September 6, 2009

"We start a telemarketing campaign this week, and we’re using a different company this year.  The owner of this company has worked in law enforcement, so he knows how important this is to us. We know the economy has been tough lately, but we definitely appreciate any donations people can make.

"We hope we get enough donations to keep as many kids in the program as we did in the past.  We’ve done a broader area in previous years, but this year we’re trying to focus only on Rome and Floyd County children."

John Glaze, a Rome Police Department detective and the president of the local Fraternal Order of Police (FOP) lodge, commenting about the latest telemarketing campaign that the Coosa Valley Fraternal Order of Police-Lodge 14 is already planning to help make the holiday a little brighter for some local disadvantaged children.

The Christmas with Santa Cops program enables disadvantaged children to shop for Christmas presents with a local police officer. The children can either buy items for themselves or buy gifts for family members.

Glaze said the program took about 70 children shopping last year, and they were able to spend about $150 each.

Area school counselors work with the police to recommend children for the program.

From the Rome, Georgia News Tribune, Fundraising efforts begin for Christmas with Santa Cops, September 1, 2009.  Detective Glaze can be reached, via the Rome, GA Police Department, at (706) 238-5123.

CATS Comment:  What the good Detective fails to tell the public is just how much of your donation is given to the telemarketer and how much is given to the charity.  Usually the "take" is about 80 to 90% of your donation is given to the telemarketing company to cover "expenses."

There is no shortage of fraud stories in police charity telemarketing.  A search of the FTC or your local attorney general's web site will yield lots of examples.

Senior Citizens are often victims of this kind of fundraising.  Testimony before various regulatory bodies yields the comments that the Senior Citizen may be afraid not to give to a police or fire charity because they believe that if they need help (like during a heart attack) that  the call will be delayed or ignored.  While this is not true, the belief continues on anyway.

It is for the above reasons that many police departments forbid their employees from engaging in telemarketing charity work and have a general policy against it.

We wish the children of Rome, GA a merry Christmas, but we defiantly know who will have a very merry Christmas this season, the owners of the telemarketing company making the calls.

We will ask the good detective what percentage of the donations actually reach the charity, and what he would do if a citizen asked not to be called.  We, here at CATS, will post his answer, should he choose to do so.

August 30, 2009

"American consumers have made it crystal clear that few things annoy them more than the billions of commercial telemarketing robocalls they receive every year.  Starting September 1, this bombardment of prerecorded pitches, senseless solicitations, and malicious marketing will be illegal. If consumers think they’re being harassed by robocallers, they need to let us know, and we will go after them.”

Jon Leibowitz, Chairman of the Federal Trade Commission (FTC), announcing that effective September 1, 2009,  prerecorded commercial telemarketing calls to consumers – commonly known as robocalls – will be prohibited, unless the telemarketer has obtained permission in writing from consumers who want to receive such calls.

The new requirement is part of amendments to the agency’s Telemarketing Sales Rule (TSR) that were announced a year ago. After September 1, sellers and telemarketers who transmit prerecorded messages to consumers who have not agreed in writing to accept such messages will face penalties of up to $16,000 per call.

The rule amendments going into effect on September 1 do not prohibit calls that deliver purely “informational” recorded messages – those that notify recipients, for example, that their flight has been cancelled, an appliance they ordered will be delivered at a certain time, or that their child’s school opening is delayed. Such calls are not covered by the TSR, as long as they do not attempt to interest consumers in the sale of any goods or services. For the same reason, the rule amendments also do not apply to calls concerning collection of debts where the calls do not seek to promote the sale of any goods or services.

In addition, calls not covered by the TSR – including those from politicians, banks, telephone carriers, and most charitable organizations – are not covered by the new prohibition. The new prohibition on prerecorded messages does not apply to certain healthcare messages. The new rule prohibits telemarketing robocalls to consumers whether or not they previously have done business with the seller.

From a press release by the Federal Trade Commission,  New Rule Prohibiting Unwanted "Robocalls" to Take Effect on September 1, August 27, 2009.  Mr. Leibowitz can be reached, via the FTC's press office, at: (202) 326-2161.

CATS Comment:  Hold the phone.  Most robocalls are already illegal if you are on the National "Do Not Call" list yet telemarketers violate the law all the time.  The current fine is $11,000.00 per call.  However, we here at CATS have documented lots of cases where the FTC settles with telemarketers for pennies a call.  We have yet to see one case where a telemarketer has paid the  $11,000 per call fine mandated by law.

Now the Federal Government (which is going broke at a rapid rate) and the FTC are making robocalls illegal and saying that the penalty is $16,000.00 per call.  If past performance is an indicator, illegal robo-calls are here to stay.  Where are they going to get the money for enforcement costs?

If the FTC wants to end robocalls, then give every citizen a private right of action against the robocallers, in other words, the right to sue the telemarketers.  If such a law is passed it should include language mandating that if the citizen who sues under that law is successful, that 10% of the judgement or settlement be given back to the Federal Government.  That will stop the calls and help the FTC find money for enforcement. 

August 23, 2009

"The sheer breadth of ‘Operation Tele-PHONEY’ is a testament to the ability of law enforcement agencies at all levels to work together effectively to help protect consumers both in the United States and abroad,  I’d like to personally thank all of our partners in this sweep for helping to eradicate the scourge of telemarketing fraud."

Federal Trade Commission (FTC) Chairman William E. Kovacic talking about operation Tele-PHONEY, and how the FTC worked with more than 30 international, federal, state, and local law enforcement agencies, announced the largest telemarketing fraud sweep ever coordinated by the agency.

Through “Operation Tele-PHONEY,” the FTC has filed federal district court complaints against 13 allegedly deceptive telemarketing operations. Combined with the actions brought by other enforcement agencies, the sweep encompasses more than 180 cases that include both civil and criminal actions in the U.S. and Canada. In many of the FTC actions announced today, federal courts have temporarily frozen defendants’ assets and suspended defendants’ operations.

Operation Tele-PHONEY includes the new FTC cases announced today, developments in several other FTC telemarketing cases, more than 80 state law enforcement actions, criminal actions against more than 90 defendants, and eight cross-border telemarketing fraud actions brought by Canada’s Competition Bureau and the British Columbia Business Practices and Consumer Protection Authority. According to the FTC, in the 13 actions it is announcing today, more than 500,000 consumers were defrauded by unscrupulous telemarketers, resulting in losses of more than $100 million. The Commission estimates that as a result of the law enforcement actions consumers will save approximately $30 million over the next year.

From a press release by the FTC, FTC Announces ‘Operation Tele-PHONEY,’ Agency’s Largest Telemarketing Sweep-More Than 180 Actions Brought by Commission and Its Law Enforcement Partners, May 20, 2008.  Kovacic can be reached, via the FTC press office, at (202) 326-2161.

CATS Comment:  It took the FTC over a year but finally some action has been taken.  Last year  FTC officials accused several firms and their principals, Jeffrey R. Deering, Richard R. Guarino, and John F. Buschel Jr., of selling advance-fee credit cards, which they duped consumers into believing were similar to a MasterCard and Visa. The cards, targeted at consumers with poor credit, could only be used to order items from the companies’ catalogs or Web site.

The FTC alleges the card scheme “duped unwitting consumers” of as much as $17.3 million, states the federal agency’s motion for summary judgment.

Now according to the Tampa Bay Business Journal, the FTC will finally sell at auction a BMW, Porsche, Mercedes Benz, limousine, boat and  as well as other assets that belonged to the telemarketing firms.

While we, here at CATS applaud the FTC's actions, we wonder what took so long.

Justice delayed is justice denied.

August 16, 2009

"You think it’s easy to raise money for a nonprofit organization, even one as important as MADD, you're new to this."

Chuck Hurley, chief executive of Mothers Against Drunk Driving (MADD) in defending their use of telemarketing companies to raise funds noted that MADD tried more 'down-home methods of fundraising', but they failed.  MADD national in 2005 lost money on golf tournaments, made a mere $585 after expenses on walking, running and biking events and earned only $326 on dinners and luncheons.

A lawsuit filed by the federal government against Edison, N.J.-based Civic Development Group – which did telephone fundraising for American Deputy Sheriff’s Association along with numerous police-related, cancer and other groups nationwide, including Long Island – charged CDG had begun to misrepresent itself as the charity, while keeping most of the funds for itself.

One excerpt from the fundraising script: “I work directly for [the group]. I am a [charity] employee calling you from the fundraising center. I do not work for a fundraising company.”

The Federal Trade Commission in a complaint that prompted that suit charged “virtually no money raised by CDG benefited local law enforcement officers,” despite callers’ claims. The FTC said CDG fundraises by “making material misrepresentations to consumers.”

Vermont Attorney General William Sorrell in 2001 said his office settled a “major charities fraud case” involving CDG, the Cancer Fund of America and Paralyzed Veterans of America-New England. The groups acknowledged CDG “told Vermont donors that Cancer Fund of America provided ‘urgent pain medication’ to critically ill cancer victims,” when the only medications bought with contributions were over-the-counter products like ibuprofen.

The problem is there’s usually no way to know or obligation to disclose exactly how funds will be used. There are no laws regarding how much nonprofit fundraisers can take from groups

From the Long Island (NY) Business news, Telemarketers now keep up to 85 percent of donations, October 10, 2008.  Mr. Hurley can be reached, via MADD, at: 800-GET-MADD (800-438-6233).

CATS Comment:  How ironic!  An organization called MADD uses a fundraising method that makes people mad!  When one considers that the telemarketing companies take about 85% of what is donated for "expenses", it could very well drive one to drink!

August 9, 2009

"What the rule is designed to do is prohibit unlawful marketing activity"

Alice Hrdy, an attorney with the Federal Trade Commission (FTC), commenting on proposed modifications to its rules defining and governing telemarketers as one way to control shady debt relief operations.

The FTC has been receiving a rising tide of complaints about companies that promise to provide debt relief for consumers, but don't deliver, has spurred a new attempt at regulation.

The aim is to reign in unscrupulous companies that tout their ability to settle debts for ''pennies on the dollar,'' but frequently take hundreds or thousands of dollars in fees. Often, they do little or nothing to help their distressed customers.

The proposal calls for a regulatory switch that would apply telemarketing rules to debt relief companies that receive telephone calls in response to advertising, as well as to those that reach out to consumers. It would ban debt relief companies from charging fees before providing services; prohibit them from making misleading claims about how fast they can help or how much money they can save for someone, and from masking for-profit companies as nonprofit agencies.

The new rules would also require debt relief companies to meet a series of disclosure requirements when discussing their services with consumers. If passed, the companies would have to tell consumers how long it would take to achieve the results they're promising; outline details on how any settlement offer the company makes would work; and explain that not all creditors will accept balance, fee or interest rate deductions.

In addition, the companies would have to tell consumers that their efforts may not stop creditors from trying to collect debts; reveal that using debt settlement may hurt someone's creditworthiness, and explain that any debt written off by creditors may be considered taxable income by the IRS.

The proposal came the same week a study by Consumer Federation of America and other consumer advocacy groups found a rising number of complaints stemming from false promises to help consumers repair bad credit and settle debts.

From The New York Times, FTC Aims to Curb Misleading Debt Relief Companies, August 3, 2009.  Ms. Hrdy can be reached, via the FTC's Office of Public Affairs, at: (202) 326-2161.

CATS Comment:  Now the FTC wants to regulate debt relief services.  They can't even take control the illegal telemarketing robo calls now, and they want to take on this responsibility?  We, here at CATS, can't wait to see how they plan to do this.

August 2, 2009

"When you sign up for the Do Not Call Registry, you’re making it clear that you don’t want to be bothered by unwanted calls,  We take these complaints seriously and take action when telemarketers ignore people’s wishes and break the law.

"Putting your number on the Do Not Call list is a great way to cut down on annoying interruptions from telemarketers.  Reporting telemarketers that keep calling anyway helps us enforce the law and stop the calls."

North Carolina Attorney General Roy Cooper make an announcement that a  telemarketing company that made illegal and annoying robo calls offering airline tickets, gas cards and NASCAR tickets is under court order to stop, thanks to the efforts by his office.

Wake County Superior Court Judge Donald W. Stephens agreed Thursday afternoon with Cooper’s request to halt Media Synergy Group, LLC of Richmond and its president Louis G. Anton from making calls that violate North Carolina telemarketing laws.  Cooper is asking the court to stop the company’s illegal telemarketing calls for good and to order the company to pay fines for its calls.

As alleged in the complaint filed Wednesday, Media Synergy Group made unsolicited sales calls to North Carolinians including to those who had joined the Do Not Call Registry.  The company used automatic dialers to make calls and deliver a prerecorded message when an answering machine picked up.

Under North Carolina law, it’s illegal to use these calls known as robo calls unless a live caller introduces the call first and asks if you’re willing to hear the recorded pitch.

According to consumers who complained to Cooper’s Consumer Protection Division, Media Synergy Group left messages claiming that consumers may have won airlines tickets, gas cards and NASCAR tickets.  The messages instructed people to call back for more information. When one consumer called the company to ask that the calls stop, the telemarketer refused and said that returning the call served as an invitation to do business and to keep calling him.

Nearly five and half million North Carolina phone numbers have been placed on the Do Not Call Registry since it started six years ago.  Since 2003, Cooper’s office has taken action against dozens of companies to stop illegal telemarketing calls, winning more than $1 million from violators.

From raleigh.mync.com, AG Cooper Pulls Plug On Illegal Robo Caller, July 31, 2009.  Attorney General Cooper can be reached at: (919) 716-6400.

CATS Comment:  Reporting telemarketers to the California Attorney General will get you nowhere.  That is because our Attorney General, Jerry Brown,  has done nothing for years about unlawful telemarketers.  Only recently did he take any action at all, and that was only after he announced that he was running for Governor.

It is better to sue the telemarketers in small claims court, and make them pay.

July 26, 2009

"The loan modification industry is teeming with confidence men and charlatans, who rip off desperate homeowners facing foreclosure.  Despite firm promises and money-back guarantees, these scam artists pocketed thousands of dollars from each victim and didn't provide an ounce of relief."

California Attorney General Attorney General Edmund G. (Jerry) Brown Jr. sued US Foreclosure Relief Corporation, H.E. Service Company, their executives -- George Escalante and Cesar Lopez -- as well as their legal affiliate Adrian Pomery for running a scam promising homeowners reductions in their principal and interest rates as low as 4 percent. Brown was joined in this suit by the Federal Trade Commission and the State of Missouri.

Using aggressive telemarketing tactics, the defendants solicited desperate homeowners and charged an upfront fee ranging from $1,800 to $2,800 for loan modification services. During one nine-month period alone, consumers paid defendants in excess of $4.4 million. Yet, in most instances, defendants failed to provide the mortgage-relief services. Once consumers paid the fee, the defendants avoided responding to consumers' inquiries.

In response to a large number of consumer complaints, several government agencies directed the defendants to stop their illegal practices. Instead, they changed their business name and continued their operations - using six different business aliases in the past eight months alone.

Brown's lawsuit alleges the companies and individuals violated: 

- The National Do Not Call Registry, 16 C.F.R. section 310.4 and California Business and Professions Code section 17200 by telemarketing their services to persons on the registry;

- The National Do Not Call Registry, 16 C.F.R. section 310.8 and California Business and Professions Code section 17200 by telemarketing their services without paying the mandatory annual fee for access to telephone numbers within the area codes included in the registry;

- California Civil Code section 2945 et seq. and California Business and Professions Code section 17200 by demanding and collecting up-front fees prior to performing any services, failing to include statutory notices in their contracts, and failing to comply with other requirements imposed on mortgage foreclosure consultants;

- California Business and Professions Code sections 17200 and 17500 by representing that they would obtain home loan modifications for consumers but failing to do so in most instances; by representing that consumers must make further payments even though they had not performed any of the promised services; by representing that they have a high success rate and that they can obtain loan modification within no more than 60 days when in fact these representations were false; and by directing consumers to avoid contact with their lenders and to stop making loan payments causing some lenders to initiate foreclosure proceedings and causing damage to consumers' credit records.

Victims of this scam include a father of four battling cancer, a small business owner, an elderly disabled couple, a sheriff whose income dropped due to city budget cuts and an Iraq-war veteran. None of these victims received the loan modification promised.

Brown is seeking unspecified civil penalties, full restitution for victims, and a permanent injunction to keep the company and the defendants from offering foreclosure consultant services.

The defendants also did business under other names including Lighthouse Services and California Foreclosure Specialists.'

From a press release by the California Attorney General's office,  Brown Sues 21 Individuals and 14 Companies Who Ripped Off Homeowners Desperate for Mortgage Relief, July 15, 2009.  Attorney General Brown can be reached, via his office at: (916) 324-5500.

CATS Comment:  Finally:  Attorney General Brown is going after a telemarketer.  Wonder why, considering how long he has been in office?  Simple, he has announced that he is running for Governor.

Is it any wonder that he has the nickname "Governor Moonbeam."

July 19, 2009

"This so-called ‘sweepstakes’ is little more than a ruse to get consumers to divulge their private information for unauthorized uses.  Manipulative schemes like this one are all too common and I am determined to shut them down.

"There is no end to the schemes people will use to get their hands on Texans’ personal identifying information. Consumers must always be careful not to give out their information if they don’t know how it will be used."

Texas Attorney General Greg Abbott talking about his department's lawsuit against an Austin-based operation that heavily promotes sweepstakes drawings for prizes as a way to obtain consumers’ personal information, which is then sold to a third-party business without consumers’ permission.

The Attorney General’s lawsuit accuses Terry Christopher Bounds, director of Austrends and president of Bounds and Pinto Marketing, of violating the Texas Deceptive Trade Practices Act by duping sweepstakes applicants into providing their personal information to Austrends, which then passes it along to Bounds and Pinto to solicit consumers in a telemarketing scheme. The lawsuit also alleges the promised prizes, such as $500 shopping sprees, are never awarded.

According to the Attorney General’s lawsuit, Austrends installs displays at cinemas, shopping malls, boat shows and other events that encourage consumers to fill out entry forms for prize drawings, including shopping sprees at various retail outlets. Austrends allegedly evaluates the “visitor survey” portion of the entry forms for certain demographic information about each person, then selects “qualified leads” for timeshare sales.

The lawsuit says Bounds and Pinto, the telemarketing side of the operation, then solicits these consumers to attend sales presentations by one or more vacation timeshare companies. Records show the two defendants received in excess of $1.5 million in 2003-04 for the personal consumer information they provided for those timeshare presentations.

Consumers are not warned when entering the “drawings” that their personal information will be used by the telemarketer and “sold” to the third-party companies, a violation of the Texas Deceptive Trade Practices Act. The law entitles the Attorney General to seek civil penalties of $20,000 per violation.

The Attorney General is seeking a court-ordered injunction requiring Austrends and Bounds and Pinto to clearly disclose the details of these “drawings” for prizes, including the fact that consumers’ information may be used by telemarketers to solicit them for vacation timeshare presentations.

The companies also may have violated the Texas No-Call law regulating telemarketers by attempting to have consumers waive their “no-call” rights with an ambiguous statement at the bottom of the entry form urging them to call about the drawing.

From a press release by the Texas Attorney General's office, Attorney General Abbott Sues Sweepstakes Operator, Telemarketer In Scheme To Obtain Personal Data, April 26, 2005.  Attorney General Abbott can be reached, via his office, at (512) 463-2050.

CATS Comment:  Amazing!  The Texas Attorney General filing a lawsuit in an attempt to protect Texan's privacy.

The California State Constitution gives each citizen an "inalienable right" to pursue and obtain "privacy, it is in the preamble of the State Constitution.  California even has a office of privacy protection. 

A walk through a shopping mall reveals lots of sweepstakes forms where millions of Californians unknowingly give up their right to privacy, yet only Texas decided to do something about it.

What is our current Attorney General doing?  Running for Governor.

When it comes to invasion of privacy and telemarketing there is true meaning in the Texas Government's slogan, Don't mess with Texas!

July 12, 2009

"The TCPA requires each company, with the exception of those making nonprofit solicitations, to maintain a list of those people who do not wish to be contacted by phone and to develop a written policy implementing this "Do not call" list-keeping requirement. These written procedures must be made available to anyone on demand."

The American Teleservices Association (ATA), which used to be known as the American Telemarketing Assocation, commenting about the requirements of the Telephone Consumer Protection Act (TCPA).

In 1995 Dateline NBC tried to get copies of do not call policies from 35 of the largest telemarketing companies by calling them up and identifying themselves as NBC News.  Only 7 actually sent their policies.  Most of the companies were ATA members.

From the ATA's website, Telephone Consumer Protection Act.  A business guide to the Federal Communications Commission (FCC) regulations implementing the Telephone Consumer Protection Act of 1991, author and date unknown.

CATS Comment:  ATA members, and the telemarketing industry in general, continue to ignore the law, despite the fact that consumers can sue, and have won, $500 in small claims courts for this violation.

Arkow v. Bank of America is the classic court case that started all this.  To see it, click here.

July 5, 2009

"They're everywhere, law enforcement gets calls on this type of scam on a regular basis.  They're very prevalent.

"They change their phones after a week or two, they use post office boxes that they change frequently, so it's very hard to track them.  People need to think very hard before they give money to people they don't know.  If it sounds too good to be true, it probably is."

FBI agent Karen Ernst talking about a telemarketing scam attacking Sacramento residents. 

June McColloch of Sacramento said she was contacted by a man named Steve Austin, who claimed to be a U.S. Customs agent at Dallas-Fort Worth International Airport.

Austin told McColloch she had won $485,000 in a sweepstakes but would need to pay 1 percent of her winnings, in a wire to a Canadian address, for duty or transfer fees.

Fortunately, the McColloch's did not buy the scheme and did not wire any money.

A joint U.S.-Canadian telemarketing task force called Project COLT seeks to identify, disrupt and dismantle these types of telemarketing fraud.  Since its inception, Project COLT has seized and returned more than $14 million to U.S. and Canadian victims of telemarketing fraud.

Canada-based telemarketing fraud results in the estimated loss of more than of $700 million a year

From Sacramento TV Station KCRA's web site, Scamming Telemarketer Calls Again, Phony Customs Agent Contacts Sacramento Woman, June 8, 2009.  FBI Special Agent Ernst can be reached at: (916) 977-2240.

CATS Comment:  Yet another telemarketing scammer picking our pockets.  Our answer at CATS:  Spend at least one minute of "quality time" with each telemarketer.  By wasting one minute of their time, we will bring the industry to a halt.

For past quotes of the week click here.

June 28, 2009

"Cell phone spam may not be the biggest problem we have to deal with, but we got the FTC to shut down the car-warranty robocalls and now it’s time they shut down the other robocallers as well.  These calls cost consumers hundreds in wasted cell phone minutes or much, much more if they get caught in the trap being laid by these unscrupulous companies. The perpetrators behind the credit card interest rate calls have also found a way around the Do Not Call List.  The FTC has to track them down and then shut them down to put an end to this nuisance once and for all."

Senator Charles "Chuck" Schumer (D-New York) commenting about about automated telemarketing calls promising to lower interest rates on their credit cards.  Not only are the calls a nuisance and violate U.S. and Canadian Do-Not-Call laws, but some companies behind the calls are ripping off consumers 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 figures cited by the White House in January, 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. Knowing that so many families are drowning in debt, telemarketers offering suspect financial assistance are taking full advantage of the situation. Consumers have reported receiving calls as early as three in the morning and on both their cell and home phones even when they have registered the numbers with federal Do-Not-Call lists. Consumers also tell the BBB that, despite their requests to the telemarketers to stop calling, the calls continue to come. 

From the Better Business Bureau (BBB) web site, BBB, Schumer Warn Consumers of Robocalls Promising to Lower Their Credit Card Interest Rate, June 10, 2009.  Senator Schumer can be reached, via his office, at: (202) 224-6542.

CATS Comment:  You talk a tough line, Senator, but the reality is that the FTC will do what it always does, settle these cases for pennies on the dollar.  The FTC has NEVER assessed the statutory $11,000.00 per call fine that the law allows.

The FTC will settle these cases for pennies a call, sorry to say, in a New York minute!

June 21, 2009

"The American Teleservices Association and its members stand beside the federal government and its agencies in the fight against fraud,  It is illegal for firms or individuals to use a legitimate channel of customer communication like the telephone to perpetrate criminal acts such as the auto warranty fraud currently being committed. It is for this very reason that the ATA has established consumer guidelines to assist the public in assessing whether a call is legitimate or fraudulent."

Tim Searcy, CEO of the American Teleservices Association (formerly the American Telemarketing Association), speaking out against companies believed to be behind a national wave of spam "robocalls" warning people that their auto warranties are about to expire and stating that they need to sign up for a new service plan.  The American Teleservices Association (ATA), a non-profit professional trade association representing the contact center industry, condemns such practices and strongly supports the removal of such fraud. Association and industry leaders are calling on their contacts in Washington, as well as various State Attorneys General, to quickly focus on anti-fraud enforcement. The ATA is suggesting that congressional hearings be conducted to address legislative action against these illegal calls that are affecting thousands of consumers nationwide. Today, the ATA also contacted representatives at the FTC and pledged its continued support of their efforts to protect consumer rights and legitimate use of the phone to conduct business.

Consumer complaints regarding car warranty scams are believed to number over 10,000 with the FTC, over 140,000 to local Better Business Bureaus, and a national total is estimated to exceed 300,000 reports, as stated in a news conference announcement on Tuesday from Senators Charles Schumer (NY-D) and Mark Warner (VAD). The FTC has inquiries under way into several companies involved in the deceptive calls and is also providing an electronic link on its homepage for consumers to file complaints.

From a press release on the ATA web site, American Teleservices Association Condemns Auto Warranty Telemarketing Scams, Association Pledges Full Resources in Support of Anti-Fraud Enforcement and Calls on Congress to Address Issues, May 13, 2009.  Mr. Searcy can be reached, toll free, at: (866) 500-4272 x103.

CATS Comment:  Searcy recently said on a radio program that these robo calls are giving the industry a bad name.  Now that's a laugh!

Its good that the ATA finally gets a taste of the frustration that we consumers have put up with for over 20 years.  All we can say, Tim, is; What non profit advocacy group tried to make telemarketing sound like a good thing?  The ATA, of course.  You and your fellow telemarketing members have earned your place in the court of public opinion.

June 14, 2009

"Deceptive telemarketers are defrauding businesses and consumers of hundreds of millions of dollars in an already difficult economic climate.  Through Operation Mirage, we are cracking down on this criminal activity with enforcement action and public education."

Andrea Rosen, Deputy Commissioner of Competition for the Canadian Competition Bureau, commenting about Operation Mirage, which has taken action against 50 organizations and individuals in the Montreal area, including executing 10 search warrants.

This criminal investigation is being conducted under the newly amended Competition Act, which allows for significantly higher penalties for those convicted of criminal telemarketing offences. This will also allow the Bureau to conduct its work more effectively. It is the first investigation that will benefit from the new penalties.

The campaign is targeting fraudsters who use illegal techniques to market phony business directories to businesses and not-for-profit organizations. It is the largest-ever Bureau sweep against deceptive telemarketing and one of the largest ever in Canada.

The Bureau's goal is to disrupt and deter illegal telemarketing operators. Operation Mirage also aims to educate, through an outreach campaign, thousands of vulnerable job seekers who may unknowingly work for deceptive telemarketing operations exposing themselves to criminal penalties.

This campaign is named "Operation Mirage" to reflect the deceptive nature of practices used by criminal telemarketers to victimize businesses and hire unsuspecting staff. The initiative benefited from the assistance of the COLT partnership (Royal Canadian Mounted Police, Surete du Quebec, City of Montreal Police Service, Canada Border Services Agency, U.S. Federal Trade Commission, Federal Bureau of Investigation, Department of Homeland Security, and U.S. Postal Inspection Service). Fraudulent telemarketers often target victims in other countries in an effort to avoid detection. Cross-border collaboration is key to ensuring fraudsters cannot hide from authorities in any jurisdiction.

From a press release on Marketwire.com, Operation Mirage: Competition Bureau Launches its Largest-ever Crackdown on Deceptive Telemarketing, June 2, 2009.  Ms. Rosen can be reached, via her office, at: (819) 997-4282.

CATS Comment:  You go girl!  Too bad that California doesn't have a Canadian Style Competition Bureau.

So let's recap.  Canada goes after telemarketers and fines the bad guys.  So Canadians can eat dinner in peace.

Canada gets a quieter dinner hour, and we, here in California are going broke, but we get Arnold!

And lets not forget Jerry Brown, Governor Moonbeam as well!

Wow...we are so lucky here in California.

June 7, 2009

"We have an obligation in government to protect New Yorkers from unscrupulous business operators, particularly during difficult economic times. Furthermore, New Yorkers have the right to avoid harassment from telemarketers and feel secure that their personal information will not be shared without their knowledge.

"This comprehensive package of bills addresses unfair collection, marketing and information practices that have caused great concern for consumers, and for the majority of enterprises that operate fairly and in accordance with the law."

New York Governor David A. Paterson announcing that he has submitted three bills to the Legislature to greatly strengthen New York’s consumer protection laws. The legislation focuses on several important areas: telemarketing, sale of sensitive personal information, and debt collection.

 The bills would strengthen the New York’s consumer protection laws in numerous ways:  

Do Not Call – The Do Not Call law is one of the State’s most important consumer protections. Individuals who register their personal land and mobile phone numbers on the federal Do Not Call Registry are afforded with some relief from annoying telemarketers. However, while existing law places some restrictions on telemarketing practices, the State’s Do Not Call law requires updating to address new approaches being used to game the system.

The proposed legislation would augment New York’s protections against many deceptive and bothersome telemarketing practices. In particular it would restrict unsolicited telemarketing calls to the hours of 9 a.m. to 5 p.m.; require telemarketers to disclose at the outset the nature of the goods or service they are selling; apply New York’s “Do Not Call” law to “robo-calls” including those that only leave a telemarketing messages; and provide the Consumer Protection Board with subpoena power to investigate wrongdoing.

From the Governeur Times, GOVERNOR PATERSON ANNOUNCES PACKAGE OF BILLS TO INCREASE CONSUMER PROTECTIONS AND HELP PREVENT FRAUD, Legislation Would Limit Telemarketing Abuse, Provide Redress Against Illegal Debt Collection Practices and Advance Consumer Information Privacy,  June 5, 2009.  Governor Paterson can be reached, via his office, at: (518) 474-8390.

CATS Comment:  New York has led the way when it it comes to dealing with telemarketers.  New Yorker's legendary rudeness to telemarketers has actually caused some telemarketing companies to provide a bonus if their telemarketers have to call into New York State.

Too bad that "laid back" California doesn't have that kind of reputation.  We, here at CATS, believe that the game playing and rudeness do have a "chilling effect" on the telemarketing industry.

As we have always said, spending at least one minute of "quality time" with a telemarketer, and not buying the product, will grind the industry to a halt.

Examples of "quality time" include asking lots of questions about the product, as well as semi-personal questions to the telemarketer (i.e. "How long have you been a telemarketer, Bill"?).

If everyone would waste their time, the industry would not stay in business.

May 31, 2009

"These individuals shamelessly exploited the goodwill of decent citizens.  A shockingly small portion of donations went to those in need, while millions went to pay for aggressive telemarketing and bloated overhead."

California Attorney Jerry Brown commenting on his office was filing eight lawsuits against a dozen charities and their fundraisers, alleging they had used false claims to raise millions of dollars and then squandered the donations intended to help police, firefighters and veterans organizations.

The suits are part of Operation False Charity, a nationwide crackdown on fraudulent charities, and are intended to stop the deceptive practices and recoup funds raised under false pretenses, according to Brown’s statement. The attorney general is seeking the involuntary dissolution of eight of the charities.

Fifty-three individuals and 17 telemarketers, among them officers and fundraisers, also are being sued. The targeted charities include the Law Enforcement Apprenticeship Program, the American Assn. of Police Officers, the Police Protective Fund Inc. and the Junior Police Academy, all based in Los Angeles.

The Sacramento-based California Police Youth Charities, along with five charities based in Orange County, one in San Mateo County and one in San Bernardino County, are also being sued.

From the Los Angeles Times, Attorney general sues charities, May 29, 2009.  Attorney General Brown can be reached, via his office, at: (916) 322-3360.

CATS Comment:  Wait just a second, these charity telemarketers have been doing this for years.  It is common knowledge that they keep most of them money they collect.  So why is former Governor and now Attorney General Jerry Brown interested in the telemarketing activities of charity telemarketers now?

It seems that now he is running for Governor again!  He wants a second crack at it!  Just look at his web site:

http://www.jerrybrown.org/about

As Attorney General, Jerry Brown knew, or should have known, that this kind or ripoff was going on.  Now that he is running for Governor, he suddenly decides to do something about it.

No wonder they called him "Governor Moonbeam".

May 24, 2009

"The American Teleservices Association and its members stand beside the federal government and its agencies in the fight against fraud.  It is illegal for firms or individuals to use a legitimate channel of customer communication like the telephone to perpetrate criminal acts such as the auto warranty fraud currently being committed. It is for this very reason that the ATA has established consumer guidelines to assist the public in assessing whether a call is legitimate or fraudulent.

"It is important for consumers to know that the phone, when used properly, continues to be the most cost effective and efficient means to conduct business. As long as consumers continue to use their common sense and consumer guidelines with telephone solicitations as they would with any other channel of marketing or communication, they will be able to avoid the defrauding that has occurred."

Tim Searcy, Chief Executive Officer of the American Teleservices Association (formerly the American Telemarketing Association) commenting on pending formal action from the Federal Trade Commission (FTC), against companies believed to be behind a national wave of spam "robocalls" warning people that their auto warranties are about to expire and stating that they need to sign up for a new service plan.

Consumer complaints regarding car warranty scams are believed to number over 10,000 with the FTC, over 140,000 to local Better Business Bureaus, and a national total is estimated to exceed 300,000 reports, as stated in a news conference announcement on Tuesday from Senators Charles Schumer (NY-D) and Mark Warner (VAD).  The FTC has inquiries under way into several companies involved in the deceptive calls and is also providing an electronic link on its homepage for consumers to file complaints.

From a press release on the American Teleservices Web Site,  American Teleservices Association Condemns Auto Warranty Telemarketing Scams, Association Pledges Full Resources in Support of Anti-Fraud Enforcement and Calls on Congress to Address Issues, May 13, 2009.  Mr. Searcy can be reached, toll free, at: (866) 500-4272 x103.

CATS Comment:  Hold the phone Tim.  Wasn't it the ATA that fought telemarketing enforcement and took the National Do-Not-Call list law all the way to the Supreme Court?

Now members of your industry are suggesting that such illegal actions are giving telemarketers a bad name.   When did telemarketers ever have a good name?  You represent the most hated industry  in the United States.

Perhaps you need a new spokesperson.  May we suggest Tom Mabe?

May 17, 2009

"I hope that the FTC and the FCC hunt each and everyone of you down and make a lesson out of you by interrupting everyone of your meals that you eat for the rest of your lives with a telemarketing call.  OK, I feel better now."

United States Congressman Mike Doyle (D-PA) commenting during a House Energy and Commerce Committee Hearing to complain about the auto warranty business and the robocalls that they are making to the entire nation.

The FTC filed suit against two companies and their executives last week, asking a federal court in Chicago to halt a wave of as many as 1 billion automated, random, prerecorded calls and freeze the assets of the companies.

Officials say the calls have targeted consumers regardless of whether they have warranties or even own cars and ignore the Do Not Call registry. They say telemarketers have misrepresented service agreements consumers have to buy for warranties that come with the price of the car.

From You Tube, Doyle blasts car warranty telemarketers for interrupting America's dinners, May 7, 2009.  Congressman Doyle can be reached at: (202) 225-2135.

CATS Comment:  Gee Mike, what took you so long to act on this?  The country has been receiving these calls for months.

We, here at CATS, are glad you find these calls annoying.  Perhaps you will remember how upset you were when you run for re-election and hire a robo call company to make calls to your constituents.

May 10, 2009

"In addition to reducing the number of intrusive phone calls, the state's telephone privacy laws also protect Hoosiers against exposure to potential scams.  The fact telemarketers are using illegal auto-dial technology and willfully disregarding the state's 'Do Not Call' statute may be a red flag that these businesses may be ignoring other laws. Consumers should be cautious if they receive a cold call."

Indiana Attorney General Greg Zoeller commenting on a lawsuit filed against two companies and one individual alleging violations of multiple state laws governing telephone privacy, including "Do Not Call.

The attorney general alleges Nevada-based Fortress Secured, and California-based SVM, Inc. and Mike Moneymaker, used illegal pre-recorded messages delivered by auto-dialers to contact numbers listed on the state's "Do Not Call" list.

The attorney general's office has received more than 160 consumer complaints reporting unsolicited, pre-recorded telemarketing phone calls.

Zoeller has received more than 100 complaints about robo-calls from these telemarketers selling auto warranties or service contracts.

The attorney general's lawsuit seeks a court injunction to permanently prevent ongoing or future violations of these state laws. In addition to allegations of violating state telephone privacy laws, SVM, Moneymaker and Fortress Secured are also accused of doing business in Indiana without the required registration.

Within the last couple weeks, Zoeller himself has received multiple "robo calls" from telemarketers on his cell phone claiming his auto warranty is about to expire and he needs to purchase an extended warranty.

From the Indiana Attorney General's web site, Indiana Attorney General Greg Zoeller files suit against Telemarketers, May 5, 2009,  Attorney General Zoeller can be reached at: (317) 232-6201.

CATS Comment:  Where is the FCC and FTC on this one?  It seems that the auto warranty scams are sweeping the country with millions of calls, yet the Federal Government fails to enforce the law.

Are you surprised?  We, here at CATS, call it business as usual.

May 3, 2009

"Telemarketers continue to harass our customers with these pitches for extended auto warranties, among other offers.  Whatever it is they are selling, these unlawful telemarketing calls are an annoyance to our customers and invade their privacy, and we will continue using all the legal weapons in our arsenal to stop this activity and protect our customers."

Steven E. Zipperstein, vice president and general counsel of Verizon Wireless commenting on a lawsuit Verizon wireless filed to stop several telemarketers from calling its customers and employees with an offer of an extended car warranty. The lawsuit, filed in New Jersey Superior Court, names Dealers Warranty (doing business as Federal Auto Protection), National Dealers Warranty and Tele Europe, B.V., and alleges these companies are responsible for illegally using an autodialer to reach Verizon Wireless customers.

The first two companies are based in Missouri, and the third is based in the Netherlands. The lawsuit alleges they have engaged in a campaign of making unsolicited telemarketing calls to Verizon Wireless customers and employees, consisting of a pre recorded voice message indicating that a car warranty is about to expire and urging the recipient to press "1" to speak to a representative. When a call recipient presses "1," the representative on the line often refuses to identify the company or provides vague information. When customers and employees have attempted to call the number that appeared on the Caller ID, they have received an automated message indication that the call was received "in error."

The lawsuit alleges violations of the Federal Telephone Consumer Protection Act, which makes it illegal to use an autodialer to make calls to wireless phones, as well as state fraud and privacy laws. By filing the lawsuit and naming John Does as defendants, Verizon Wireless will be able to use the discovery process to help identify the currently unknown telemarketers and to get them to halt their practices.

Since 2004, Verizon Wireless has brought nearly 20 lawsuits against wireless spammers, telemarketers and pretexters, and the company's record of protecting customer privacy puts the company at the forefront of the U.S. wireless industry. Over the past several years, Verizon Wireless has won permanent injunctions against individuals and companies that have engaged in illegal telemarketing and text message spamming to Verizon Wireless customers and against those who have attempted to obtain information about Verizon Wireless customers to sell to third parties. On behalf of its customers, Verizon Wireless has donated tens of thousands of dollars to many domestic violence prevention, law enforcement and other non-profit organizations as a result of these settlements.

From PR Newswire, Verizon Wireless to Telemarketers: Stop Illegally Calling Our Customers to Offer Extended Automobile Warranties,  Names Three More Companies Alleged to be Making Unlawful Calls in Lawsuit Filed Last Week, April 28, 2009.  Mr. Zipperstein can be reached, via Verizon Wireless, toll free, at: (800) 621-9900.

CATS Comment:  Zipperstein is an American Hero in the war to maintain the privacy of our cell phones.  Not only are the calls annoying, but on a cell phone, we have to PAY for them.

Zipperstein is up to the job. With an extensive background in law enforcement as Los Angeles' chief assistant U.S. attorney in the late 1990s and several positions at the Department of Justice before landing at GTE Corp. in 1997 and moving to Verizon in 2000, he's quite familiar with intricate legal issues and with telecommunications. At Verizon Wireless, he will combine his knowledge of regulation with practical application of it.

They should be sued--big time.  Thanks Steve!

April 26, 2009

"Oklahomans have made it clear that they do not wish to received unsolicited sales calls.  We are asking the court to enjoin GSA from further illegal telemarketing in Oklahoma and to assess a civil penalty against the company for the calls already made."

Oklahoma Attorney General Drew Edmondson commenting on a civil suit that he filed against a Texas Telemarketer.

According to the press release, Golden Senior Advisors, Inc. (GSA), a telemarketing company based in San Marcos, is accused of calling at least 28 Oklahomans who were registered with Oklahoma’s Telemarketer Restriction Act Consumer Registry (TRACR).

Additionally, the state is accusing GSA of initiating telemarketing calls using an automatic dial device. Oklahoma law requires telemarketing calls to be initiated by a live operator.

Under Oklahoma law, GSA could face up to a $10,000 fine for each TRACR violation and up to a $10,000 fine for each auto-dial violation.

From a press release by the Oklahoma Attorney General, Suit Filed Against Texas Telemarketer, April 21, 2009.   Attorney General Edmondson can be reached, via his office, at:  (405) 521-3921.

CATS Comment:  Now the big question is will Attorney General Edmondson charge the telemarketer $10,000.00 per call, as the law allows for, or will he reduce the penalty to pennies on the dollar?

We, here at CATS, will be watching for the results.   And we will report it on this web site.

April 19, 2009

"In both of these cases, DIRECTV and Comcast violated consumers’ privacy by calling people who specifically had asked these companies not to call them again.  What makes DIRECTV’s actions especially troubling is that it is a two-time offender: DIRECTV violated not only the FTC’s Do Not Call Rules, but also a previous federal court order barring it from exactly this type of conduct. Simply put, we won’t tolerate firms that disregard consumers’ specific requests not to be called, and we will be especially tough on companies that ignore their obligations under prior court orders."

Federal Trade Commission (FTC) Chairman Jon Leibowitz commenting on Satellite television provider DIRECTV, and Comcast Corp., one of the nation’s largest providers of cable and Internet services.  These companies have agreed to pay a total of $3.21 million to settle separate Federal Trade Commission charges that they violated the Do Not Call provisions of the Telemarketing Sales Rule (TSR), including charges that they or their telemarketers called consumers who specifically had told the companies not to call them again. In addition, a DIRECTV telemarketer and its principals have agreed to pay a $115,000 penalty for making prerecorded sales calls to consumers who had asked not to be called.

Under the proposed settlements announced today, DIRECTV has agreed to pay $2.31 million to settle the FTC’s charges that it violated the TSR’s Do Not Call provisions and, as a result, violated a 2005 court order barring it from such conduct. Comcast has agreed to pay $900,000 to settle the FTC’s claims that it violated the entity-specific Do Not Call provisions of the TSR. All the defendants also would be prohibited from future violations of the TSR and the Do Not Call Rule. The U.S. Department of Justice (DOJ) filed the actions on behalf of the FTC.

Combined with the $5.3 million DIRECTV paid under the earlier 2005 Do Not Call order, the company has now agreed to pay a total of more than $7.6 million for Do Not Call violations. A DIRECTV telemarketer and its principals also are settling related charges.

They would be required to pay a $115,000 penalty for calling consumers who had asked not to be called, and for “abandoning” calls – delivering a prerecorded message when consumers answered, rather than connecting them to a live sales representative.

The Commission’s complaint against Comcast is the first to have as its sole allegation that a company called consumers who had specifically asked it not to call them – the so-called “entity-specific” Do Not Call provision of the TSR.

From a press release on the FTC's web site, DIRECTV, Comcast to Pay Total of $3.21 Million for Entity-Specific Do Not Call Violations, April 16, 2009.  Mr. Liebowitz can be reached, via the FTC press office, at:  (202) 326-2161.

CATS Comment:  Considering the fact that these companies AGAIN broke the law, and considering how many calls these companies made, these million dollar fines are probably just pennies per call.

Is it any wonder that companies do this with little regard for the law?  At a cost of pennies per call, they just roll it in to their expenses of doing business.

And if their tax lawyers are clever, they just may deduct the fines as a business expense.

April 12, 2009

"Missouri law is clear that consumers who notify the Attorney General that they do not want to receive business solicitations are legally protected from receiving unwanted calls if they do not already have an existing business relationship with that company.  We will not tolerate any business that ignores our law and harasses Missourians."

Missouri Attorney General Chris Koster commenting about an out-of-state company agreeing to pay the state of Missouri $80,000 for calling and soliciting business from Missourians who had previously placed their names on the state's No-Call List. The agreement includes a provision that the company will no longer solicit business from any Missouri telephone customers.

The business, WAT Broadcasting of Allen, Texas, made telephone solicitations to residential subscribers in Missouri in an attempt to enlist consumers in a debt-consolidation program and/or charge consumers a fee to lower interest rates on their credit cards.

WAT Broadcasting had also been doing business as Credit Account Solutions and XYZ Marketing. The harassing calls were brought to the attention of the Attorney General's office by consumers who had called the Do-Not-Call hotline at 1-800-buzzoff (1-800-289-9633) to file a complaint with the office.

From a press release on the Attorney General's Web Site, Attorney General Chris Koster shuts down Texas telemarketer and collects $80,000, April 9, 2009.  Attorney General Koster can be reached, via his press office, at: (573) 751-8844.        

CATS Comment:  Koster was sworn in as Missouri's Attorney General on January 12, 2009.  Although he campaigned on on a platform of prosecuting fraudulent Medicaid providers; cracking down on violations of workers' rights; aggressively enforcing Missouri's environmental laws; and supporting law enforcement in fighting the spread of methamphetamines and preventing urban crime, it now appears that he will be a rising star in the enforcement of telemarketing laws as well.

We, here at CATS, congratulate you and wish you much success.

April 5, 2009

"From the reports we’re receiving right now, the caller informs the person who answers the phone that he or she will be receiving $2.5 million. The only condition to receiving this money is that the winner has to send a check or wire money to the organization in Kingston, Jamaica prior to getting the prize.  This is a hoax. Do not be fooled. You will not receive the promised money."

Kentucky Attorney General Jack Conway warning Kentuckians to be wary of any telephone calls telling them they have won a prize or been selected to receive millions of dollars so long as they pay a small processing fee.

The caller may also try to suggest that the citizen has been selected to receive a large amount of money from a government agency as part of the stimulus package. Although the supposed reason for the call may vary, they all promise a valuable prize if the person pays a relatively small processing fee so that the prize can be delivered. 

The Office of Attorney General recommends that Kentuckians follow these tips to protect themselves against telephone scams like this:

• Never send any money to claim a “prize.” If you are asked to send MONEY to claim a prize IT IS A SCAM and you should hang up.

• Beware of any caller who claims to be an IRS official, a bank official or a U.S. Customs agent announcing they are “holding your prize check” until a fee is sent to release the funds.

• Do not send money by wire service or check to a telemarketer telling you they are holding money for you. 

• Never give your credit-card, social security or bank account number to someone you don’t know. 

• Never call a 900 number to claim a prize. 900 numbers can charge high fees so even if you don’t send money for the prize, you will receive a large bill just for the call.

From Kentucky.gov, Attorney General Conway Warns Kentuckians About "Jamaican" Telemarketing Prize Scam, March 13, 2009.  Attorney General Conway, can be reached, via his press office, at (502) 696-5659.

CATS Comment: Attorney General Conway offers good advice.  If  you are on  the national "Do-Not-Call" list the call is most likely, illegal.

So how can one fight back?  We have a plan.

Simply put, WASTE THEIR TIME.

When a telemarketer calls. act interested in the product or service.  Ask questions and face interest in his offer.  After a minute or so, you can then just tell them that you are not interested, or worse, that you are an inmate in a correctional facility!

If each of us just wastes one minute of a telemarketer's time, the industry will grind to halt.

March 29, 2009

"Don't call me again, means just that.  Telemarketers should have appropriate systems and procedures in place to ensure that calls are not made to customers who have previously indicated their wish not to receive these calls."

Chris Chapman, Chairman of the Australian Communications and Media Authority (a government agency of Australia similar to the FCC in the US), commenting about Australia's largest bank breaking Australia's "Do-Not-Call" law.

THE communications authority has fired off a formal warning to Australia's largest bank for making prohibited telemarketing calls to its customers.

The Australian Communications and Media Authority has said Westpac has been the subject of more complaints than any of its rivals for breaching Do Not Call laws.

An investigation by the authority found Westpac call centres continued to make unsolicited calls to customers whose numbers were on the Do Not Call register and had asked the bank not to contact them about products and services.

Under laws passed by parliament in 2006 companies can make unsolicited calls to their customers.  However, customers can withdraw that implied consent at any time and it is the telemarketing company's responsibility to know which customers had done so.

The authority has found that Westpac's procedures for recording consent withdrawals had failed. 

From NewsCom.au, Westpac ignored Do Not Call lists, March 16, 2009.   Mr.  Chapman can be reached at: 03 9963 6800.

CATS Comment: Funny..it seems that Bank of America is doing the same thing that Westpac is doing.  At least Westpac did not need a bailout.

Bank of America is now partially owned by the government, yet they still break the law.  Now what's up with that?

March 22, 2009

"With this type business [telemarketers], they're spending the money as fast as they're getting it in a lot of times.  Out of the telemarketing rooms they may be running multiple types of businesses, from selling magazines to the gas cards.

"They're far more prepared than those of us on the receiving end of the telemarketing plan. They use multiple Web sites, company names and officers, 'to confuse people who they really are.'"

Deborah Berry, Operations Manager of the Pinellas County Department of Justice and Consumer Services commenting about a local telemarketer's gas card voucher scheme.

The troubles began with the now infamous free gas voucher program that Largo Florida telemarketing company Tidewater Marketing Global Consultants passed on to unwitting consumers in the United States, Canada and Puerto Rico.

Tidewater, just as many telemarketing firms, did not become extinct with the Do Not Call Registry. It simply evolved.

Hundreds of thousands of consumers lined up for free gas vouchers, many of them people who would have ignored Tidewater Marketing's pitch during an evening phone call. They had received the vouchers from retailers — Tire Kingdom, Sound Advice, Ashley Furniture, Bob's Carpet Mart, the New Port Richey Hyundai dealer — which distributed them as incentives for purchases or even just to visit the store.

It was perhaps a brilliant stroke by Tidewater president Crystal Clark and her business because in this incarnation, the retailers became the face of her company's program, rather than a telephone number flashing on the caller ID.

Retailers bought gas vouchers from Tidewater in denominations as high as $500, though they themselves often paid as little as $7. To collect the promised voucher, customers had to contact Tidewater and provide personal information. In other words, they voluntarily — if inadvertently and unknowingly — were giving Tidewater, the telemarketer, permission to skirt the Do Not Call list and to market to them. Consumers may have thought they were dealing with a company from which they bought furniture or tires or carpet, but in reality they were communicating directly with a telemarketer.

For all that, consumers should not harbor hopes of getting their promised money. Tidewater had $300 in the bank and $10 million in debts to consumers when the state shut it down and took it over.

From the St. Petersburg (FL) Times, Do Not Call's unintended consequence, March 22, 2009.  Ms. Berry can be contacted through the Pinellas County Department of Justice and Consumer Services, at: (727) 464-6200.

CATS Comment:  If it sounds too good to be true...It probably is.  If it is coming from a telemarketer, it defiantly is too good to be true.

Why would anyone buy from a telemarketer anyway?  As Mr. Spock, from Star Trek, often said, "That is totally illogical".

Case closed!

March 15, 2009

"The idea is to transform the negative experience of a telemarketing call into something positive."

Hesse McGraw, the curator at the Bemis Center for Contemporary Arts in Ohama, Nebraska commenting about using telemarketing as an art exhibit.

Starting at 6 PM on Friday March 13, a small brigade of telemarketing volunteers will begin calling every name in the Omaha white pages.  The calls are part of a performance and installation exhibit called "(402) DisConnect/ReConnect."  Created by Kansas City-based installation artist Matthew Dehaemers, the exhibit runs through May 16 at the Bemis Center.

The calls will continue during normal gallery hours through the end of the exhibit.  The hope is that they will reach all 100,000-plus people listed in the residential section of the white pages over the course of two months.

Dehaemers' installation focuses on three industries that have held dominant places in the region's history: the Stockyards, the Strategic Air Command — now the U.S. Strategic Command — and telecommunications.

Volunteers from the Urban League of Nebraska, along with students from Metropolitan Community College and the Kent Bellows Studio and Center for Visual Arts, will be among those working the center's phones.

The callers will have a different message each day, with the daily quote listed on a giant, flashing screen at the back of the call center.

His unusual Stockyards features phone receivers being loaded into Omaha Steaks boxes. The installation's nine call center tables have been decorated with long, glossy streamers.

So far, Dehaemers has commitments from more than 30 people to make calls.  He says 100 callers will probably be needed to contact all the numbers in the phone book within two months. He hopes more volunteers will come forward after the show opens.

From The Ohama World Hearld, Artist will reach out and touch through phone calls, March 13, 2009.  Mr. McGraw can be reached via the Bemis Center at:(402) 341- 7130.

CATS Comment:  Telemarketing as an art form?  We would expect such a crazy idea to come from California.

There must something in the water in Ohama.  Better call the EPA.

March 8, 2009

"The (Canadian) national do-not-call-list is benefiting the great majority of those who've registered a telephone number by stemming unwanted telemarketing calls.

"There's no evidence to support the contention that there's a lot of fraudulent use of our national (list) going on.

"It just doesn't seem likely that a telemarketing organization would benefit from telephoning a list of people who've expressed a strong desire not to be contacted.  The national do-not-call list just does not make a good sucker list."

Brendan Wycks, executive director of the Marketing Research and Intelligence Association of Canada commenting  about the the recent implementation of Canada's Do Not Call law.

The country's much debated and oft-maligned do-not-call list is proving effective at stopping nuisance phone pitches even though some Canadians are receiving more unwanted calls since registering, a new survey suggests.

The poll, to be released Monday, finds 80 per cent of those on the list said they received fewer calls after putting their numbers on the list, which was implemented Sept. 30.

On the other hand, 13 per cent said the number of telemarketers contacting them had risen to unprecedented levels despite registering, according to the Harris-Decima survey.

The situation is worst in Alberta and British Columbia, where almost one in four people on the list report getting more calls - double than in Ontario and Quebec.

The federal government put the no-call list in place to deal with perennial complaints about unsolicited sales calls. About 6.2 million Canadians have entered phone numbers on the database.  Telemarketers are legally required to access the list and ensure they do not attempt to contact those numbers.

From the Canadian Press, Much debated do-not-call list working well, poll suggests, March 8, 2008.  Mr. Wycks can be reached at: (905) 602-6854 ext 8724.

CATS Comment:  The success of any do-not-call list law does not depend on how well the law is received by consumers, but rather how well the law is enforced.  Is it any surprise that telemarketing complaints in the United States are increasing when the chief enforcement agency for telemarketing, the Federal Trade Commission (FTC), settles complaints for pennies a call?

What ever happened to the $11,000 fine per call?  May it rest in peace.

March 1, 2009

"Telemarketers continue to harass our customers and impinge on their privacy, often using illegal methods including autodialers.  Whatever their methods and whatever their product, these unlawful telemarketing calls are an annoyance to our customers and invade their privacy." 

Steven E. Zipperstein, vice president and general counsel of Verizon Wireless commenting about his company's lawsuit  to stop a Utah-based telemarketing company from calling its customers and employees to advertise the upcoming movie, "The Velveteen Rabbit." The lawsuit, filed this week in U.S. District Court in Trenton, alleges Feature Films for Families, Inc. illegally used an autodialer to call Verizon Wireless customers on behalf of a company called Family 1 Films, based in Los Angeles.

The lawsuit states that over 10 days in early February, nearly 500,000 calls were made to Verizon Wireless customers and employees from the telephone number 917-210-4609. When customers answered these calls to their wireless phones they heard either a prerecorded voice message or an individual reading a script promoting the anticipated release of the film.

Many of these calls came in rapid succession, indicating the use of an autodialer to place the calls. For example, between 4 p.m. and 5 p.m. on Feb. 13, nearly 11,000 calls with the same caller ID were made, an average of one call every 0.32 seconds, and nearly 10,000 calls were made from a number with the same caller ID between 7 p.m. and 8 p.m. on Feb. 6, an average of one call every 0.36 seconds.

The lawsuit alleges violations of the Federal Telephone Consumer Protection Act, which makes it illegal to use an autodialer to make calls to wireless phones, as well as state fraud and privacy laws. Verizon Wireless has also filed a motion seeking a preliminary injunction to stop the defendants from making these calls.

From a press release on PR Newswire, Verizon Wireless Files Lawsuit to Stop Telemarketers From Illegally Calling Customers About Movie, February 25, 2009.  Mr. Zipperstein can be reached via Verizon Wireless' media relations person, Debra Lewis at: (908) 559-7512.

CATS Comment:  Zipperstein on the hunt again, hunting the elusive North American robo-caller.  His efforts have made Verizon  a leader in protecting customer privacy putting the company at the forefront of the U.S. wireless industry. Over the past several years, Verizon Wireless has won permanent injunctions against individuals and companies that have engaged in illegal telemarketing and text message spamming to Verizon Wireless customers, and against those who have attempted to obtain information about Verizon Wireless customers to sell to third parties.

February 22, 2009

"We think donors should be appalled by this.  When the charity is seeing nothing until way down the road, we don't think that's a good enough return."

Ken Berger, president and CEO of charitynavigator.org, a nonprofit group that rates charities on how well they use donors' money commenting on the fact that charity telemarketers take about 80% (or more) of the funds they raise for charity in California.

Charities are turning to these campaigns more often because of fundraising problems related to the economy, which began deteriorating in 2007, said Bennett Weiner, chief operating officer of the Better Business Bureau's Wise Giving Alliance. Sacramento started seeing an increase in low-return campaigns even earlier, largely because of the use of telemarketing by two firefighter advocacy groups based here.

The state does not have much power to limit fundraising fees, according to Belinda Johns, senior assistant attorney general and boss of California's charities section, citing some 1980s U.S. Supreme Court decisions. In a 1988 case, the court ruled that North Carolina's attempt to dictate what were reasonable and unreasonable fundraising fees infringed on freedom of speech.

The motivation for charities is clear: They find it's easier to get money from a recent donor, so they effectively trade donors' initial contributions to the telemarketer for a list of their names, Weiner said. They then hit those donors again, he said, or, if the donor made a recurring pledge over the phone, they cross their fingers and hope the money keeps coming in.

From the Sacramento Bee, Donations increasingly go to charities' telemarketers in California, February 22, 2009.  Mr. can be reached, via charitynavagator.com at: (201) 818-1288 x 109.

CATS Comment:  CharityNavagator.org evaluates charities for free on its web site, so you can check out any charity through them.

But if a charity calls you, you need not bother to check them out, instead. just ask the solicitor just how much the charity gets and how much the telemarketer gets.  This will waste their time, and usually they will lie anyway.  After wasting a minute of the telemarketer's time, hanging up will give you that warm feeling that you have beaten the telemarketer at his own game.  Just think what would happen if everyone did that - telemarketing would end as we know it.

We, here at CATS, always spend as much "quality time" as we can, with every telemarketer that calls us.

February 15, 2009

"Hello. I'm calling for John McCain and the RNC because you need to know that Barack Obama has worked closely with domestic terrorist Bill Ayers, whose organization bombed the U.S. Capitol, the Pentagon, a judge's home and killed Americans. And Democrats will enact an extreme leftist agenda if they take control of Washington. Barack Obama and his Democratic allies lack the judgment to lead our country. This call was paid for by McCain-Palin 2008 and the Republican National Committee at 202-863-8500."

The words to a script read by telemarketers employed by Sitel, a telemarketing firm in Madison, Wisconsin.  One employee, Ted Zoromski, felt he had been misled during the hiring process because the script had changed and he felt the message had gone negative from the original script.  So Zoromski quit, fed up with what he perceived as scare tactics.

From the web site of Fox 47, WMSM Madison, Wisconsin, October 20, 2008.  Sitel can be reached, toll free, at (866) 95Sitel.

CATS Comment:  We here at CATS are not surprised.  We have dealt with Sitel before.

According to Sitel's web site, Sitel says: The greatest potential for growth in any company is a unified commitment to high corporate values. Sitel has defined a set of Values that represent the foundation on which we strive to achieve in all of our activities and interactions.

But when we asked them two years ago for a copy of their "Do-Not-Call" policy, which they are required by Federal Law to provide "upon demand", our request was cheerfully ignored.

Perhaps they should change the name of the company from Sitel to Slytel.

February 8, 2009

"Calling people on the Do Not Call list and trying to trick them is no way to do business.  We’re taking action to stop the calls and try to win money back for consumers."

North Carolina Attorney General Roy Cooper commenting on his office getting a temporary restraining against  Automotive Protection of New Jersey and its manager Christopher Doyle. The order requires the defendants to stop illegally telemarketing North Carolinians and to quit taking their money.

Cooper contends that Automotive Protection targeted consumers aged 65 or older, called people who had signed up for the Do Not Call Registry to stop telemarketing calls, and misrepresented the terms of its auto warranties. He is asking the court to permanently stop the company’s illegal telemarketing calls and deceptive sales practices, and to order the company to pay consumer refunds and civil penalties.

A total of 24 consumers complained to the Attorney General’s Consumer Protection Division about the company’s illegal calls, tricky sales tactics and refusal to pay refunds.

From a press release on the North Carolina Attorney General's web site, Telemarketer forced to park auto warranty scam, says AG. Cooper wins order against telemarketer that targeted seniors, took money without permission, February 6, 2009.  Attorney General Cooper can be reached, via his press office, at: (919) 716-6413.

CATS Comment:  Good for you Roy, You rock!

Too bad our California Attorney General and former Governor, Jerry "moonbeam" Brown, hasn't lifted a finger to stop the illegal warranty telemarketing calls bombarding California citizens.  After you clean up North Carolina, please consider moving to California and running for California Attorney General.

Should you decide to do so we, here at CATS, will get you some Disneyland tickets.

February 1, 2009

"The Do Not Call List was put in place to help Canadians reduce the number of unsolicited calls they receive from telemarketers. To date, over 6.1 million Canadians have registered their phone numbers on the list to prevent this type of phone call. It has come to my attention that there are some who are accessing the list for non-commercial or illegal purposes.

"Upon learning that the list could be acquired and used illegally, I spoke to the Chair of the Canadian Radio-television and Telecommunications Commission (CRTC), who has assured me that it is taking these complaints very seriously. It is the intent of the CRTC to aggressively pursue anyone abusing the use of the Do Not Call List; I wholly support that approach. Significant penalties of up to $15 000 per illegal call to a number on the list can be levied against guilty parties. The CRTC Chair shares the concern that Canadians expect and deserve that investigations into Do Not Call List complaints should proceed quickly and that strong penalties are to be imposed on abusers."

The Honorable Tony Clement, Canadian Minister of Industry, commenting some problems with Canada's new Do Not Call List law.

The list, intended to block unwanted telemarketers from bothering Canadians at home, was an instant hit when launched last fall. So many Canadians immediately wanted their phone numbers put on the list that the registry, run by the CRTC, crashed after being overwhelmed by hundreds of thousands of phone calls and on-line visits.

Now the registry is under fire after reports that some people who listed their numbers as "do not call" are instead receiving more telemarketing calls than ever and, understandably, are not too happy about it.

With more than six million Canadians now on the list, critics say the registry’s flaws have made the situation worse than before.

From Exchange Magazine, Minister of Industry Supports Strong CRTC Action on Abuse of Do Not Call List, January 27, 2009.    Minister Clement can be reached, via his press secretary, at: (613) 995-9001. 

CATS Comment:  The solution is straightforward.  Place decoy names with numbers that are set up to "trap" an incoming call's I.D.  Then do a press release telling all (including the bad guys) that the list is seeded with decoy names to detect abuse.

After a few of the bad guys get caught, the word will get around.   This will definitely have a chilling effect on list misuse.

January 25, 2009

"Consumers should always be wary when receiving calls from telemarketers offering deals on goods and services that sound too good to be true.  Consumers should insist that the terms of the sale be disclosed in writing before making a purchase. If the telemarketer refuses to disclose the terms in writing, the consumer should walk away or, in this case, hang up the phone."

West Virginia Attorney General Darrell McGraw commenting about I Glo Workshop, Inc. of Phoenix, Arizona.

I Glo began billing consumers for items that they did not purchase.  After Darrell Mc Graw stepped in, I Glo agreed to obtain a license and surety bond and to inform consumers of their unconditional right under West Virginia law to cancel telemarketing sales within seven days.  I Glo also agreed to refund all payments it collected from West Virginia consumers, which resulted in refunds of $5,828.89 and canceled debts of $4,832.06 for 99 West Virginia consumers.

From consumeraffairs.com, West Virginia Settles with Arizona Telemarketer, Company claimed overpriced goods would help handicapped veterans, January 16, 2009.  Attorney General McGraw can be reached, via his office, at: (304) 558-2021.

CATS Comment:  Good for you, Darrell!  Not only did you set them straight, you got refunds for many consumers.  Too bad our California Attorney General doesn't do the same.

January 18, 2009

"If you don't have somebody checking up on it, how do you know it's working or how do you know bad guys aren't taking advantage of it."

"We want to make certain that whatever loopholes exist are filled.

"It should be fully staffed and the money has to be there to pay staff if that's what has to happen to check up on it.

"Otherwise, what's the point of putting in something that's to protect consumers if you don't watch out for the bad guys." 

Eleanor Friedland, vice-president of the Consumers Council of Canada commenting about how Canada's new Do-Not-Call list has made the situation worse for the consumer.

With nearly 6 million numbers registered, many Canadians who signed up are feeling duped because they're receiving more telemarketing calls than ever before.

That's because the do-not-call list may have gotten into the wrong hands. 

To access the list, a telemarketer simply has to go to the National Do Not Call List website, enter the appropriate information and pay a small fee.

The problem is, anyone can pose as a telemarketer and obtain the list.  If they're willing to break the rules, they could then call the numbers, which are all recent.

And if that list makes its way to a telemarketer outside Canada, the CRTC does not have the jurisdiction to stop them from calling Canadian numbers.

From CTV.ca (Canada's largest TV Network), Do-not-Call list made situation 'worse,' says group, January 15, 2009.  Ms. Friedland can be reached, via the Consumer's Council of Canada, at: (416) 483-2696.     

CATS Comment:  Ms. Friedland, we here at CATS can offer you a foolproof solution to the problem.  Simply insert some decoy names in the list.

What do we mean by decoy names?  These are made up names tied to real phone numbers that are matched to numbers that are set up specifically to trace calls.

Lets say you add the name Fred Smith to a phone number of (416) 555-1212.  When a telemarketer calls that number the telemarketer thinks that he is calling a sales prospect named Fred Smith.  In reality he is calling a number that is set up to trap the incoming call's number.

The telemarketer can then be prosecuted for violating Canada's Do-Not-Call laws.

Finally you let it be known that you, via press releases and media stories, have inserted decoy names on the do not call list and those decoys are designed to catch violators.  After a few get caught, the bad guys will get the idea!

January 11, 2009

"Welcome to the ATA's SRO web page.  This is where we introduce the idea of "self-regulation."

Let's be honest.  Consumers are frustrated with us and regulators and legislators are responding.  In a bad way, creating burdensome regulations which are very expensive.

So what are we going to do about it?  We've created a seal program that will assure regulators, legislators, even consumers that you are abiding by Federal and State law as well as the ATA standards.  This will lower the frustration and increase the credibility that we have in Washington DC and in State capitols all over the US."

Tim Searcy, Chief Executive Officer of the American Teleservices Association, (Formerly the American Telemarketing Association) in a flash video presentation on the ATA's web site.  (To view the video, click here.  You may have to click on a small arrow at the top right of the web page.)

The ATA's SRO claims to be comprised of many members of the Fortune 500 and service provider sectors, working together to lead the way toward preserving the viability of the Teleservices channel.

From the ATA's web site, no title or posting date provided on the flash video.

Mr. Searcy can be reached, toll free at: (866) 500-4272 x103.

CATS Comment:  Tim, cute flash video, but you know that as long as your members continue to electronically invade consumers' homes with your commercial babble, the frustration and complaining to regulators and legislators will continue to happen.

This concept of "self regulation" has been tried before, and it failed miserably.  Have you forgotten the Direct Marketing Association's 'Telephone Preference Service'?

OH!  Sorry!  We forgot!  Self regulation is good now.  After all, the ATA makes money on it!   Those "compliance seminars" and the "Washington Summit" are pretty pricey.

January 4, 2009

"First, professional fund-raisers consider percentage-based compensation, in which a fund-raiser takes a certain percentage of each contribution, to be unethical. AFP, which represents more than 30,000 fund-raisers around the world, prohibits this practice as part of its code of ethics.

"Second, telemarketing is one of the most expensive ways to raise funds. It does help to raise an organization's awareness and acquire new donors, but it's not uncommon for some charities to actually lose money with this approach (even using unpaid volunteers). The cost of acquiring new donors is mitigated over time when they become annual contributors."

Allen Peckham, President of the Massachusetts chapter of the Association of Fundraising commenting in a published letter to the editor of the Boston Globe regarding an article the Globe published titled "Solicitors kept bulk of donations."

The article says that almost two-thirds of all charitable donations collected in Massachusetts last year by professional solicitors went to the fund-raisers themselves, according to the state attorney general's office.

Telemarketers have been known to keep up to 90% of the funds that they solicit as a "fee" for their services.

For example, All Pro Productions, a Marlborough MA company owned by former National Football League player Fred Smerlas, conducted more campaigns in the state than any other solicitation firm, raising $3.2 million in 48 campaigns and channeling $1.15 million to the charities.  The recipients, who received 36 percent of the money, were composed primarily of police and firefighter groups.

From the Boston Globe, letter to the editor, Preferred way to handle fund-raising, January 3, 2009.  Mr. Pecham can be reached at: (781) 894-3140.

CATS Comment:  Giving to a charity telemarketer usually generates more calls to your home, since now you are considered a "live one" when it comes to donating money.

In California there is little one can do to stop the calls, except......

When they call, try to waste as much of their time as possible.

Recently when a telemarketer called soliciting funds for the Sheriff's Department, we asked where the money was spent. We then asked for more details, keeping the caller on for over 10 minutes, and then ended the call with the comment that we recently received a parking ticket and had no money to give to the Cops.

The telemarketer hung up!

NEVER give to a charity telemarketer, or you will surely pay the price by getting more calls.