Odds are you’ve gotten one of these computer-generated calls:  someone claiming to be with “Card Services” says:  “There are no problems currently with your account, however it is urgent that you contact us concerning your eligibility for lowering your interest rates” or “This is our final attempt to reach you since you’ve not responded to our other calls to discuss your credit card debt.”   

If you mistakenly believe this is a legitimate call from your credit card company and agree to be connected to a “live operator”, a sales rep will then ask you to provide your credit card account number so that he or she can negotiate on your behalf to get a lower interest rate to save you thousands of dollars. 

What may or may not be clear, however, is that they’ll first use the credit card information you’ve given them to charge an upfront fee that may range from $600 to $1,000 simply to call your card company and ask for a lower rate—something you could do yourself for free, as we explain here.

A deluge of complaints about these robocalls prompted the Better Business Bureau and U.S. Sen. Chuck Schumer, D-N.Y., to issue a scam alert earlier this summer warning consumers not to provide credit card numbers or any other personal information to such telemarketers, who typically spoof Caller ID to display various fake phone numbers to disguise where they’re truly calling from.  The Federal Trade Commission also filed suit in July against one of several companies behind these robocalls, charging that Tacoma-based Mutual Consolidated Savings (also known as United Savings Center Inc.)  didn’t reduce consumers’ debts as promised and didn’t make good on its promise to refund its fees of up to $899 if it didn’t succeed in getting consumers’ rates cut. Even so, complaints about such calls continue to pour in, according to BBB spokesperson Alison Southwick, who said she recently received one of these calls herself. 

But some relief may come soon from the threat of penalties imposed by new regulations designed to curtail robocalls that take effect Sept. 1.  Telemarketers who transmit prerecorded messages to consumers who have not agreed in writing to accept such calls will face penalties of up to $16,000 per call. “Starting September 1, this bombardment of prerecorded pitches, senseless solicitations and malicious marketing will be illegal,” says FTC Chairman Jon Leibowitz.  “If consumers think they’re being harassed by robocallers, they need to let us know and we will go after them.”

As the FTC notes here, there are some exceptions to the new rule.  For instance robocalls will still be allowed from most charitable organizations and—not surprisingly—politicians. Unfortunately, robocalls from banks, insurers and telecommunications companies also can continue because they are not covered by the new rules because they are outside of FTC’s legal jurisdiction.

But if you continue to be pestered by other telemarketers who violate the new law by pushing goods and services via robocalls, file a complaint at www.ftc.gov or call 877-FTC-HELP.  You can also report any suspected scammers, whether they use robocalls or not, to the Better Business Bureau at www.bbb.org and to your state attorney general.   And to reduce telemarketing calls in general, place your number on the federal Do Not Call list at www.donotcall.gov. –– Andrea Rock