FTC’s Record-Setting “Do Not Call” Settlement: 4 Business Tips and 1 Candid Advice

Yesterday marked the 10th anniversary of the National Do Not Call Registry, a good time to reflect on ten years of progress. But to paraphrase Thomas Jefferson (or Patrick Henry, or Irish statesman John Philpott Curran, or whoever), eternal vigilance is the price of uninterrupted dinnertime. The record-breaking $7.5 million settlement with National Mortgage Brokers demonstrates the FTC’s commitment to combating illegal telemarketing and provides insights for businesses to comply with the law.

Mortgage Investors, Inc. is one of the largest veterans home loan refinancers in the United States. According to the FTC, the company’s telemarketers called more than 5.4 million numbers on the Do Not Call registry and used deceptive claims to promote refinancing services to current and former service members. Following the company’s script, the telemarketer attempted to set up a face-to-face sales meeting, asking consumers how much money they borrowed to buy a home and then telling them the company could save them significant sums of money:

So, if you could let me know what your original loan amount was, I could tell you what your savings were___?

It looks like we can save you about ___ each month, which is a lot of money, isn’t it? Most people now tell me they can find better uses for the money than giving it to their current mortgage company. I guess you can too, right?

According to the complaint, the telemarketer suggested the savings would last the life of the 30-year mortgage. But there’s a big problem: The defendants only offer adjustable-rate mortgages — meaning if interest rates rise, homeowners’ monthly payments will increase. and promises that “one of the best parts is that with our plans, you won’t take any money out of your pocket…” . .”? That’s wrong, the FTC says.

Additionally, even when consumers alerted Mortgage Investor’s telemarketers that they were on the do-not-call registry or that they no longer wanted to receive calls, the company didn’t stop. The telemarketers responded that they were not trying to sell anything and were just trying to save veterans money, according to the FTC. (Yes, that’s right.)

What if consumers asked companies to stop calling? Mortgage investor training materials instruct telemarketers to transfer the call to a manager, who again attempts to schedule an appointment to sell their refinance services. Thousands of consumers have complained to the Federal Trade Commission and other agencies about spam and spam calls.

What can other companies learn from the $7.5 million settlement?

Place the MAP on the map. The FTC’s lawsuit alleges violations of the Mortgage Act and Practice Advertising Rules (MAP Rules), which have been in effect since August 2011. The MAP Rule, enforced by the FTC and Consumer Financial Protection Bureau as Regulation N, prohibits materially misleading statements in marketing. mortgage credit products. (Note: As with any additional compliance incentives a company needs, violations of MAP rules can result in severe civil penalties.)

Firmly oppose actions that violate total shareholder return. If 105 enforcement actions, nearly 300 injunctions against companies and individuals, and millions of dollars in civil penalties haven’t already gotten the message across, we’re making it clear again: Countering Violations of State Prohibitions on Registration and Other Sections Telemarketing Sales Rules remain a top priority for the FTC—and failure to comply will be costly.

Details of the DNC for a specific entity. Under the Telemarketing Sales Rules, you must honor a consumer’s request to be placed on an entity-specific Do Not Call list. Consumers should never ask twice. Nor can companies require them to go through hoops to defend their rights. Make sure your employees and others working on your behalf understand the importance of consumer entity-specific requests and respect them.

existVAAffiliation of lid. The FTC complaint alleges that mortgage investors placed marketing materials in envelopes that appeared to be from the government and included a return address on Pennsylvania Avenue in Washington. The mailer also mentioned the Veterans Administration, including “your benefit activation code VA 9999999.” The FTC said the company’s two pseudonyms added to the false impression: Department of Veterans Information and Veterans Home Loans. This case serves as a reminder to avoid marketing methods that expressly or implicitly falsely convey government relationships.

Now for this frank advice. Many companies like to emphasize their commitment to military families. It’s a laudable sentiment, but if you’re truly interested in supporting our troops, here’s an easy way to start: Don’t target deceptive behavior.

By the way, July 17th is Military Consumer Protection Day. Visit Military.ncpw.gov for tips on how to participate.

Source link

from Tech Empire Solutions https://techempiresolutions.com/ftcs-record-setting-do-not-call-settlement-4-business-tips-and-1-candid-advice/
via https://techempiresolutions.com/

from Tech Empire Solutions https://techempiresolutions.wordpress.com/2024/01/21/ftcs-record-setting-do-not-call-settlement-4-business-tips-and-1-candid-advice/
via https://techempiresolutions.com/

from Mary Ashley https://maryashle.wordpress.com/2024/01/21/ftcs-record-setting-do-not-call-settlement-4-business-tips-and-1-candid-advice/
via https://techempiresolutions.com/