FTC Reminds Debt Relief Companies to Avoid These Payment Methods

The Federal Trade Commission wants businesses to know about important Telemarketing Sales Rule (TSR) amendments that are now in effect. These changes make it unlawful for telemarketers to use three types of payment methods exploited by con artists and scammers.

As of this month, it is illegal for telemarketers to ask consumers to pay for goods or services using cash-to-cash money transfers, such as MoneyGram and Western Union provide, or by providing PIN numbers from cash reload cards such as MoneyPak, Vanilla Reload or Reloadit packs.

It also is illegal for telemarketers to use unsigned checks called “remotely created payment orders” to withdraw money directly from consumers’ bank accounts.

As detailed in a press release issued in November 2015, the FTC finalized the payment method bans amendments to the TSR late last year. Business guidance about the new bans is available. New guidance warns consumers that any telemarketer requesting payment using these methods is a scammer because the payment method is illegal.

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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.
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