Fraud allegations and lawsuits ILD Teleservices

1 fraud allegations , lawsuits

1.1 connecticut
1.2 wisconsin
1.3 federal trade commission

fraud allegations , lawsuits

numerous consumer complaints have been made against ild teleservices alleging have passed along phony, inaccurate, or inflated charges or subscriptions customers. numerous complaints have been made failed allow customers dispute phony charges , insisted customers must pay bills, after customers had explained charges fraudulent. allegations unfounded issues typically merchant providing services. in cases ild has been named in, since inception in 1996, cases have been dismissed without admission of liability or finding of wrongdoing company. however, note following connecticut case, ild found liable , typical of complaints recent march 2011.

connecticut

in november 2002, connecticut department of consumer protection reached settlement ild teleservices on lawsuit ild teleservices , 800 connect on alleged violations of connecticut unfair trade practices act. 800 connect allegedly failed disclose charges use of 800 numbers (common missdials of popular free numbers) , used ild clearing house fraudulent charges. attorney general richard blumenthal stated: callers pressed 1 provided correct toll-free telephone number had misdialed not informed charged fee receiving correct toll-free telephone number. however, callers did not press 1 , stayed on line informed charged fee receiving correct toll-free telephone number. result of settlement, ild teleservices made pay $50,000 in penalties, , prohibited charging customers when ild knows, or should know, vendor did not disclose charges consumers or obtain authorization them... upon conclusion of connecticut filing, ild instituted provisions within business application process merchants , company refined internal monitoring procedures prevent similar occurrences in future. connecticut attorney general s office press release on matter reads follows:

state reaches settlement 800 connect, ild teleservices

november 19, 2002

attorney general richard blumenthal , department of consumer protection commissioner james t. fleming today announced settlements ild telecommunications, inc. (ild) , 800 connect , principal david stein alleged violations of connecticut unfair trade practices act (cutpa).

800 connect failed disclose charges imposed on consumers misdialed used toll-free telephone numbers, causing consumers improperly billed thousands of dollars, through ild.

instead of pay-per-call service, 800 connect ran scam-per-call program concealing charges consumers, blumenthal said. rather correcting billing problems , disputes, ild merely repeated 800 connect s scripted responses, caused consumers pay improper charges. 800 connect defunct, our message other businesses constant: businesses must disclose charges , conspicuously, , consumers should check charges on bills.

whether bill pay-per-call, or other questionable service or charge, urge consumers review telephone bills each month, fleming warns. if find charge service never received, or not disclosed, , company not remedy problem, contact department of consumer protection. pleased 17,000 connecticut consumers receive credits these 800 connect charges billed ild; consumers work hard money lose portion of phone scam.

800 connect purported provide service consumers mis-dialed dialed toll-free telephone numbers. when consumers misdialed, hear recorded message indicating if trying reach stated business, receive correct toll-free telephone number either pressing 1 key or staying on line, or hanging , checking number through directory assistance. callers pressed 1 provided correct toll-free telephone number had misdialed not informed charged fee receiving correct toll-free telephone number. however, callers did not press 1 , stayed on line informed charged fee receiving correct toll-free telephone number.

ild, has billing contracts telephone companies, including snet , verizon in connecticut, billed on behalf of 800 connect. consumers charged 800 connect received page in telephone bill identifying both ild , 800 connect. when consumers called ild question 800 connect charges, ild informed consumers had been charged receiving telephone number provided 800 connect, after toll-free number misdialed. ild did not issue bill credits.

approximately 17,000 consumers receive credits, amounting approximately $47,000, on november or december snet or verizon telephone bills. ild pay $50,000 in penalties , other funds state of connecticut. 800 connect , david stein pay total of $2,500 in civil penalties.

also in settlement, ild prohibited from:

billing or collecting 800 connect; billing telephone subscribers on local telephone service bill audio entertainment or information provided through toll-free telephone number, unless have agreed fees; billing consumers on local telephone service bills vendor s telephone-billed purchase, when ild knows, or should know, vendor did not disclose charges consumers or obtain authorization them in accordance applicable law; , misrepresenting consumer calls obligated pay charge or misrepresenting consumer authorized charge.

also, provided in settlement 800 connect , stein, prohibited soliciting connecticut consumers purchase pay-per-call services, such 900-number services or other audio information or telephone-billed purchase, or offering pay-per-call or audio services connecticut consumers 5 years.

wisconsin

in december 2007 wisconsin attorney general s office announced had reached settlement in consumer protection lawsuit against ild teleservices. attorney general peg lautenschlager claimed on 1,000 customers subscribed monthly services did not order echurch network , ilab . (such internet access people did not own computers.) these charges billed through ild teleservices. attorney general alleged ild teleservices liable violations of wisconsin telecommunications law because knew or should have known charges fraud because according ild s own records, on 30% of ilabs charges , on 40% of echurch charges disputed. in accordance terms of settlement, ild teleservices acted control refund of money had made complaint against 2 merchants processing charges through ild teleservices; “echurch network” , “ilab”, terminate merchant client if cramming complaints exceed 1% 3 months in six-month period , , submit various other monitoring processes. ild has since refined procedures prevent similar occurrences in future.

federal trade commission

in february 2003, ild teleservices required pay $675,000 fine ftc violations of ftc act, requires merchants providing pay per call services, in case 800connect, maintain presubscription agreements services provided via toll-free number. federal trade commission claimed ild teleservices, in connection billing or collection of 800 connect services, failed abide dispute resolution procedures required “pay per call” rule, technical violation of rule. ftc alleged ild teleservices further violated rule not recognizing charging customers 1-800 call constitutes billing error must forgiven, in fact, refunding money less half of customers complained (refunds legally obligated give), repeatedly , routinely violating rule . finally, ftc alleged ild teleservices deceptively misrepresented customers required law pay charges incurred calling 1-800 number when, in fact, not required pay charges. upon conclusion of ftc filing, ild instituted provisions within contracts merchants , refined internal monitoring procedures prevent similar occurrences in future.