Telemarketers Barred from Using Three Types of Payment Methods Exploited by Con Artists
Any telemarketer requesting payment using any of the now banned payment methods should be considered a scammer
The Federal Trade Commission (FTC) wants businesses and consumers 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 that are commonly exploited by con artists and scammers who target unsuspecting consumers.
As of this month, it is now illegal for telemarketers to ask consumers to pay for goods or services using cash-to-cash money transfers—such as those that MoneyGram and Western Union provide—or by providing PIN numbers from cash reload cards such as MoneyPak, Vanilla Reload or Reloadit packs.
It is also now 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.
The FTC warns consumers that any telemarketer requesting payment using any of the now banned payment methods should be considered a scammer. Hang up and report the call to the FTC.