The FTC told companies last fall about impending prohibitions under the Telemarketing Sales Rule (TSR) on certain payment methods that legitimate telemarketing businesses don’t use, but con artists have been known to exploit: remotely-created checks, remotely-created payment orders, cash-to-cash transfers, and cash reload mechanisms. Well, as of June 13, 2016, these prohibitions are in effect.
The changes to the TSR will stop telemarketers from dipping directly into consumers’ bank accounts through checks and payment orders that have been remotely created by the telemarketer or seller. Since they’re remotely created, they’re never actually signed by the account holder – and that makes it easy for telemarketers and sellers to dip directly into consumers’ bank accounts. And it’s then hard to reverse the transactions with consumers’ banks (again, a reason why con artists love using these methods).
Read the FTC bulletin here.