CONSUMER ALERT

MIKE COX

ATTORNEY GENERAL

The Attorney General provides Consumer Alerts to inform the public of unfair, misleading, or deceptive business practices, and to provide information and guidance on other issues of concern.

"CONSUMER REWARDS NETWORK" WARNING - HANG UP ON "FREE SHOPPING SPREE" TELEMARKETERS!

Consumers throughout Michigan have reported receiving phone calls claiming to be from Wal-Mart offering $500.00 in shopping vouchers to "valued customers."  In order to receive the vouchers, the caller requires personal banking account information, supposedly so that a small charge for shipping and handling can be automatically withdrawn from the consumer's checking account.  Sound too good to be true?  It is!

Consumers who provided the requested bank information found their accounts quickly depleted through one or more unauthorized electronic withdrawals made by companies they had never heard of (such as Mega Movie Club, Net4Ever, and Health Network Unlimited), apparent affiliates of Consumer Rewards Network, a sales entity reportedly located in Woodland Hills, California.   In at least one instance, the entire account was withdrawn, causing not only loss of funds, but overdrafts and hefty bank fees.  Reports from other states suggest callers may alternatively ask for credit card information.

DEMAND DRAFTS

When providing over the phone a checking account number and a bank routing number (numbers reproduced at the bottom of the check), you are giving the caller the opportunity to withdraw money from your account as if you had written a check.   In most states, including Michigan, you can pre-authorize a draft from your checking account.   This occurs when you provide your checking account and bank routing numbers and authorize a certain amount of money to be withdrawn from your account.   Your signature is not required for money to be drawn out of a checking account in this manner.   Demand drafts closely resemble checks and are processed through the check clearing system, which handles millions of items daily. 

Once you provide your account information to another person, you cannot control how that person uses the information.  Accounts may easily be accessed by unauthorized demand drafts or for larger amounts than authorized. 

PROTECT YOURSELF

• Do not provide bank account or other personal information over the phone to telemarketers or anyone you do not know.

• Beware of offers that sound too good to be true, especially if they require you to provide your bank account or credit card numbers.  

• Beware of any offer that requires bank account or credit card numbers to cover shipping and handling charges.   This may be a pretext for con-artists to obtain access to your accounts.

• If you give your account information to a suspicious caller, immediately call your bank, explain the circumstances, and tell them you want to take all necessary steps to block unauthorized withdrawals.   Follow up your call with a visit to the bank and written notification.  Keep a copy of the written notification.  Your bank will likely charge you a fee for stopping the payment.

• If the money has already been withdrawn, immediately ask the bank to credit your account because the debit was not authorized.  To get this credit, you may need to submit a sworn statement to your bank that the debit was unauthorized.  This statement is called a "Written Statement Under Penalty of Perjury," and you may get a copy from your bank.

• Always check your bank statements to make sure that there are no unauthorized payments.   Report any unauthorized payments to the bank as soon as you detect them.   In the case of unauthorized demand drafts, you may also wish to close the account to avoid any further unauthorized withdrawals by persons who have gained access to your account information.  Be aware that con-artists may sell your information to other bad actors.

• Put your telephone number on the Federal Trade Commission's (FTC) Do Not Call Registry by calling 1-888-382-1222 (TTY 1-866-290-4236) from the telephone number you want put on the Registry.  You may also register online at www.donotcall.gov.

COMPLAINTS

Michigan consumers who have received these calls or provided account information are encouraged to file a complaint with the Attorney General's Consumer Protection Division.  Victims are asked to provide proof of the unauthorized charges (copies of the demand drafts or credit card statements).  All who complain are asked to indicate whether the number called is on the FTC's National Do Not Call Registry.  Complaints may be filed online at www.michigan.gov/ag, by calling toll-free 1-877-765-8388, or writing to:  Consumer Protection Division, P.O. Box 30213-7713, Lansing, MI  48909.