The phone rings. You pick it up and hear a recorded message that promises to reduce your credit card rates if you just press 1.
Press 1 and you'll get a human telemarketer claiming to work for MCS Programs and for a fee, promises to help you reduce your credit card rate.
Ask who they are, where they're located and how they got your personal information and you'll soon hear a dial tone.
The Canadian Marketing Association has never heard of MCS Programs. Would MCS be short for Mastercard Services? Mastercard Canada say they've never heard of these people either, and that they're not engaged in any credit card related telemarketing.
But Phone Busters recognizes the pattern. In fact, there's a link from their
http://phonebusters.com/english/legal_2007.html">web site to a
http://www.ftc.gov/opa/2007/02/sms.shtm">media release on the US Federal Trade Commission site tdescribes this made-in-Canada scam and how it worked to defraud American consumers.
The telemarketer promises to help the victim reduce his or her credit card rates, but first, you have to pay a fee to the telemarketer. And for that, you're asked to provide your credit card information. Don't do it.
Here's the FTC's explanation of how this works:
For $675 plus $20 for shipping and handling, the complaint alleges, the defendants send consumers promotional materials with more promises to substantially reduce their interest rates, and a “financial profile form†for consumers to complete and mail back. The form asks consumers to list the current balance, credit limit, interest rate, and suggested minimum payment for each of their credit card and other debts, as well as their social security number and other personal information.After receiving the completed form, the defendants initiate three-way telephone calls with consumers and their credit card companies and ask the companies to lower the consumers’ credit card interest rates. The requests typically are denied, and that is often the extent of the defendants’ services. The complaint also alleges that the defendants do not honor their policy of giving refunds to consumers who do not experience the promised substantial savings.The telemarketing scheme has raised its head in Fredericton. There's no telling if this is the same group that the FTC took to court to stop them bilking American consumers.
We called the Fredericton Police Department to find out if other local residents and businesses have received these calls and filed complaints, but have yet to get a call back.
So, as always: Be careful with your money and your personal information. For more details about this an other telephone scams, visit the Phone Busters web site.
Cheers,
George
PS - We now have
http://blogs.justfred.ca/justfred-news/2007/06/06/update-on-the-telemarketing-scam/"> an update on this story with information from Phone Busters and the Fredericton City Police.