yellowlocaldirectory.com engages in attempts to collect payment via collection agency, for services supposedly agreed upon and purchased.
The scam happens as follows:
An agent from yellolocaldirectory.com contacts businesses by telephone repeatedly, often speaking to an employee who is NOT an authorized agent, and deceptively leads the employee to believe they are asking to verify contact information for the business for a current service used by the company. The employee agrees and the verification call is recorded. During the verification, there is a long and VERY fast sentence that mentions charges and an invoice will be mailed. Again, the employee is lead to believe this is a current service, not a new service.
United States Federal Laws require the following for authorization, taken from here: http://www.ftc.gov/os/2002/12/tsrfinalrule.pdf :
(3) Causing billing information to be submitted for payment, or collecting or attempting to collect payment for goods or services or a charitable contribution, directly or indirectly, without the customer’s or donor’s express verifiable authorization, except when the method of payment used is a credit card subject to protections of the Truth in Lending Act and Regulation Z,
3 or a debit card subject to the protections of the Electronic Fund Transfer Act and Regulation E.4 Such authorization shall be deemed verifiable if any of the following means is employed:
(i) Express written authorization by the customer or donor, which includes the customer’s or donor’s signature;
5
(ii) Express oral authorization which is audio-recorded and made available
3
Truth in Lending Act, 15 U.S.C. 1601 et seq., and Regulation Z, 12 CFR part 226.
4
Electronic Fund Transfer Act, 15 U.S.C. 1693 et seq., and Regulation E, 12 CFR part 205.
5
For purposes of this Rule, the term ‘‘signature’’ shall include an electronic or digital form of signature, to the extent that such form of signature is recognized as a valid signature under applicable federal law or state contract law.
upon request to the customer or donor, and the customer’s or donor’s bank or other billing entity, and which evidences clearly both the customer’s or donor’s authorization of payment for the goods or services or charitable contribution that are the subject of the telemarketing transaction and the customer’s or donor’s receipt of all of the following information:
(A) The number of debits, charges, or payments (if more than one);
(B) The date(s) the debit(s), charge(s), or payment(s) will be submitted for payment;
(C) The amount(s) of the debit(s), charge(s), or payment(s);
(D) The customer’s or donor’s name;
(E) The customer’s or donor’s billing information, identified with sufficient specificity such that the customer or donor understands what account will be used to collect payment for the goods or services or charitable contribution that are the subject of the telemarketing transaction;
(F) A telephone number for customer or donor inquiry that is answered during normal business hours; and
(G) The date of the customer’s or donor’s oral authorization; or
(iii) Written confirmation of the transaction, identified in a clear and conspicuous manner as such on the outside of the envelope, sent to the customer or donor via first class mail prior to the submission for payment of the customer’s or donor’s billing information, and that includes all of the information contained in §§ 310.3(a)(3)(ii)(A)-(G) and a clear and conspicuous statement of the procedures by which the customer or donor can obtain a refund from the seller or telemarketer or charitable organization in the event the confirmation is inaccurate;
provided, however, that this means of authorization shall not be deemed verifiable in instances in which goods or services are offered in a transaction involving a free-to-pay conversion and preacquired account information.
The verification phone call does NOT include clear verification as required by law, that the person is agreeing to purchase a service and there are NO follow up postal mail or bills.
At a later date, the business receives the aforementioned phone call from a debt collection agent attempting to collect the debt. The debt collection agent refuses to give contact information for the supposed company, other than their website domain name.
Research on this company shows that this company has only been in business since 2010. The website was registered on April 29th, 2010. The website was registered anonymously using a proxy registration service.
They receive an F rating from the Better Business Bureau, with 301 complaints of this EXACT business practice as listed here: http://www.bbb.org/reno/business-reviews/advertising-directory-and-guide/yellow-local-directory-in-reno-nv-90011891
The deceptive practice of calling an employee to verify information for what the employee is lead to believe is CURRENT service already authorized, rather than new service, and then contact to the business being made by a collection agent, is detailed here: http://www.clarkhoward.com/answers/scams-rip-offs/2011/apr/21/yellow-local-directory-scam/
If you have been targeted by this scam, do NOT pay the charges. File a complaint with your state Attorney General's office and with the BBB, as linked to above. Other advice at the Clarkhoward link notifying the company by certified mail (return receipt) that you are disputing the debt.
If the "debt" has been sold to a collection agency, you must notify them of your dispute. Collection agencies who have purchased debts are required by law to provide you with verification and proof of the original debt when you request it.
There is more information about this and information on protection for consumers on the Federal Trade Commission website, here: http://FTC.gov