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Home > Debt Relief Industry > Located in Florida or Calling Florida Residents? You Better Have a Telemarketing License.

Located in Florida or Calling Florida Residents? You Better Have a Telemarketing License.

If you are a debt relief company that has a call center located in Florida, your business address is in Florida, or you call Florida residents, you had better make sure you have a business telemarketing license and your individual employees hold a commercial telephone salesperson license from the State of Florida.

In the past the need for a telemarketing license may not have been a big deal, or at least that’s what you thought. But not having a valid telemarketing license is a felony in Florida and this week fourteen telemarketers in Florida were arrested and charged under the statute.

On Wednesday detectives arrested the following telemarketers for operating without a license: Bennett Charles Kulback, 28; Matthew Dunn, 36; Kelly Scott Hettema, 21; David Madrid, 22; William Emil Lepido, 43; Kristin Lynn Napolitano, 24; Kirstin Perri Bryan, 21; Daniel Rattelade, 27; Matthew Carlisle Sigman, 32; Emily Victoria Combe, 21; Philip Barone, 51; Edwin Martoral, 42; Joshua David Cooper, 31; and Joseph Anthony Pietragallo, 26.

These 14 arrests also stem from an unresolved complaint after a telephone sales pitch, police said. The unidentified client agreed to pay $400 using his credit card to place an advertisement in Golf’n Style magazine, but then had an additional $49 charged to his card without his permission, according to investigators.

He made several unsuccessful attempts to contact Nationwide Publishing Group before calling police on Oct. 27. Two days later, detectives visited Nationwide Publishing Group, on the 7300 block of North Federal Highway, and interviewed employees who showed them the magazine with the client’s advertisement inside, but they were unable to name locations where the magazine was distributed, despite telling the client the magazine would be available at different country clubs and resorts near the victim’s home. – Source

I’ll admit I was not aware of the law and need to license before but there are plenty of debt relief and debt settlement companies operating that would have staff members subject to being licensed.

If a consumer is dissatisfied with the services of any debt relief company and those services were sold over the telephone, a consumer could file a complaint with the State of Florida and it may lead to the telemarketer or salesperson being arrested and charged with a felony.

The law requires businesses that solicit the sale of consumer goods or services to be licensed, to post some form of security, and that their salespersons be licensed. It also requires the solicitor to identify him or herself by true first and last name and the name of the business on whose behalf he or she is calling. It requires a written contract that matches the description of the goods or services offered in the telephone solicitation, contains the name, address, telephone number and license number of the seller, and states the buyers right to cancel immediately preceding the signature. The written contract is not required if the consumer is given a full refund for the return of undamaged and unused goods or a cancellation of services within 7 days of receipt of the goods or a cancellation of the services and the seller processes the refund within 30 days after receipt of the returned merchandise by the consumer.

Based on the recent arrests over a $49 disputed charge, my advice is all debt relief businesses in Florida or who may call a Florida resident need to get licensed immediately.

For more information on the required licensing and forms, click here.

Located in Florida or Calling Florida Residents? You Better Have a Telemarketing License.
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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Joel Washing

    Remove the above photo. It is copyrighted material.

    • http://GetOutOfDebt.org Steve Rhode

      I just did. But you may want to chat with Wylio that represented the photo under a creative commons license when it was originally published.

      • Joel Washing

        Thanks Steve. I’ll look into it.

  • FL Revenue

    yea, there isn’t a lot of monetary damages in terms of fees charged to clicnets. But, I don’t think the state is concerned about that. This is a revenue generator for FL.

  • Steve Rhode

    If you are talking about if a telemarketing license is needed in this example, I think in the debt relief world right now it had better be all about belt and suspenders.

    You might be interested in the following free webinar on compliance to be held tomorrow.

  • Steve

    If a debt relief company is not charging any fee’s until after the client has paid the collector/creditor then there can not be a claim of damages. If the debt relief company gets a signed agreement from the debitor at the time of settlement for the cost of services as well as the agreed upon payback then there is absolutely no way to get scammed.

    I would find it hard to believe that the AG’s office of Florida would go after this type of operation. What do you think?

  • Steve

    If a debt relief company is not charging any fee’s until after the client has paid the collector/creditor then there can not be a claim of damages. If the debt relief company gets a signed agreement from the debitor at the time of settlement for the cost of services as well as the agreed upon payback then there is absolutely no way to get scammed.

    I would find it hard to believe that the AG’s office of Florida would go after this type of operation. What do you think?

    • http://GetOutOfDebt.org Steve Rhode

      If you are talking about if a telemarketing license is needed in this example, I think in the debt relief world right now it had better be all about belt and suspenders.

      You might be interested in the following free webinar on compliance to be held tomorrow.

    • FL Revenue

      yea, there isn’t a lot of monetary damages in terms of fees charged to clicnets. But, I don’t think the state is concerned about that. This is a revenue generator for FL.

  • FindTheTruth

    Steve,
    They both are responsible 1099 has no impact

  • Steve Rhode

    I wonder if they are now left hanging individually?

    Steve

  • whistleblower

    This company is back up and running in West Palm Beach again. All telemarketers have to sign an independant contractors agreement and are paid 1099.

  • whistleblower

    This company is back up and running in West Palm Beach again. All telemarketers have to sign an independant contractors agreement and are paid 1099.

    • http://GetOutOfDebt.org Steve Rhode

      I wonder if they are now left hanging individually?

      Steve

      • FindTheTruth

        Steve,
        They both are responsible 1099 has no impact

  • Jdc3565

    This was a b2b transaction in which there was no “consumer goods or services” rendered. If i read the statute correctly than b2b does not apply in this type of sale.

  • ComplianceSlave

    DoA walked into a friends company yesterday looking for a debt settlement comapny that dad shut down 2 months ago…. New company didnt have the telemarketing licenses…. $16,000 fine- $30k in 20 days.

  • http://www.ftc.gov ComplianceSlave

    DoA walked into a friends company yesterday looking for a debt settlement comapny that dad shut down 2 months ago…. New company didnt have the telemarketing licenses…. $16,000 fine- $30k in 20 days.

  • Steve Rhode

    While the law may be difficult to understand, the recent actions and arrests of the 14 telemarketers should help to clarify that extreme caution should be the order of the day.

  • David

    This law is hard to understand, http://www.leg.state.fl.us/Sta

    “3. The salesperson intends to complete a sale or enter into an agreement to purchase during the course of the telephone call;”

    In what situation would a salesperson intend to NOT complete a sale or enter into an agreement? The salesperson is trying as hard as possible to not sell the service?

    “(c) Other communication with a person which represents a price, quality, or availability of consumer goods or services”

    What type of advertisement would NOT represent the availability of that service? Wouldnt any advertisement, by the very nature of an advertisement, represent that the service is available?

    “‘invites a response by telephone’ does not mean the mere listing or including of a telephone number in a notification or advertisement.”

    What type of advertisement would fall under this sentence? So if I send an advertisement, and merely list my telephone number, then I dont need to be licensed?

  • David

    This law is hard to understand, http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0500-0599/0501/Sections/0501.603.html

    “3. The salesperson intends to complete a sale or enter into an agreement to purchase during the course of the telephone call;”

    In what situation would a salesperson intend to NOT complete a sale or enter into an agreement? The salesperson is trying as hard as possible to not sell the service?

    “(c) Other communication with a person which represents a price, quality, or availability of consumer goods or services”

    What type of advertisement would NOT represent the availability of that service? Wouldnt any advertisement, by the very nature of an advertisement, represent that the service is available?

    “‘invites a response by telephone’ does not mean the mere listing or including of a telephone number in a notification or advertisement.”

    What type of advertisement would fall under this sentence? So if I send an advertisement, and merely list my telephone number, then I dont need to be licensed?

    • http://GetOutOfDebt.org Steve Rhode

      While the law may be difficult to understand, the recent actions and arrests of the 14 telemarketers should help to clarify that extreme caution should be the order of the day.

      • Jdc3565

        This was a b2b transaction in which there was no “consumer goods or services” rendered. If i read the statute correctly than b2b does not apply in this type of sale.

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