Fight Back Against Automated Telemarketers!

• Date: 14 March 2007
• Address: 535 E. Fulton Ste. 1A, Grand Rapids, MI 49503
• Caller ID: (800) 679-0336
• Recording: solicitation for DVDs of "family friendly movies" sold by Feature Films For Family in Murray, UT (apparently a Mormon church front).

• Date: 21 January 2004 1:31PM
• Address: 5815 Carmichael Road, Montgomery, AL 36117
• Caller ID: (334) 387-2758
• Hang-up call

• Date: 20 January 2004 7:55PM, 26 Jan 1004 7:41PM
• Address: 2200 Highway 121, Bedford, TX 76021
• Caller ID: (817) 786-1074
• Hang-up call

• Date: 16 January 2004 9:29AM
• Address: Atlanta, GA
• Caller ID: (404) 523-0000
• Recording: tail end of a prerecord for a credit counseling scam.
• Call Trace obtained. This call is still under investigation. This call happened after the National Do-Not-Call Registry went into effect.

Automated Telemarketer Hall of Shame

• Date: 16 January 2004 9:29AM
• Address: Atlanta, GA
• Caller ID: (404) 523-0000
• Recording: tail end of a prerecord for a credit counseling scam.
• Call Trace obtained.

• Dates: 15 April 2002 10:09AM, 18 October 2002 12:56PM; 31 October 2002 12:27PM, 12:33PM, 12:48PM (also), 12:50PM (also); 19 November 2002 2:04PM (also); 4 February 2003 12:54PM (also); 4 February 2003 12:55PM (also); 4 February 2003 12:57PM (also); 4 February 2003 1:40PM (also); 12 February 2003 10:12AM; 12 February 2003 1:37PM.
• Address: 8550 Ulmerton Rd., Suite 200, Largo, FL 33771
• Caller ID: none in the original telemarketing call. (727) 532-9155 in subsequent calls.
• Recording: (4/15) call from "Eric Williams" at (800) 774-1130. Private Citizen has an audio recording of a typical recording. Read here for details about harassment calls with Caller ID of (727) 532-9155.
• Script: The Southeast Texas TCPA site has transcribed the text as being similar to the following:
  "Hi, this is Michael Seever calling on behalf of Lighthouse Credit Foundation. You may recall correspondence stating that you have been approved to consolidate your credit cards down to as low as 1.5 percent interest. I'm surprised you haven't called, because this is not a new loan, and again you have already been approved by a nonprofit agency. In order to lower your rates before your next billing cycle, I do need to find out what your balances are presently, so if you could please have your statements available when you call, that would be great. I'll be in the office till 10 p.m. Eastern time. My number toll-free is (800) 774-1130. Again it's 1 (800) 774-1130. Thank you.
• Response when called: tranfer to voice mailbox.
• Response to demand letter: both William K. Budd, ICS's "vice president & general counsel", and Nancy Higgins, ICS's "compliance specialist", claim that they are allowed to do this because "ICS markets on behalf of tax-exempt non-profit organizations" and claim that this makes ICS exempt from the federal TCPA. More on these so-called "tax-exempt non-profit organizations" below. U.S. District Court Judge Joseph L. Tauro has rejected this claim. So has the New York Supreme Court.
• They also claimed that they would not call me again. So, how did they explain those harassment calls in October, November, and February with their number in the Caller ID? What is this lame explanation to the police that they "may have a person hacking into their system"?
• The more stringent Washington State law has no loophole for non-profits, and is taking action against ICS in spite of their defiance. Note ICS's false claim that the federal TCPA preempts more state law. The TCPA says otherwise; read 47 USC 227(e)(1).
• Neither the FTC nor other states were impressed either; ICS and Lighthouse have been fined or sued by the Federal Trade Comission (which whacked them for $2.4 million!), California (which whacked them for $1.89 million!), Massachusetts (also see here, here, and here.), Vermont, Indiana, Maine (reported by the Kennebec Business Monthly, formerly at URL http://www.kennbizmo.com/florida.htm, however it looks like the kennbizmo.com domain has been taken over by a pornography site), New York State, Oregon, Missouri, and Mississippi. North Dakota has specifically listed Integrated Credit Solutions, Debt Relief Foundation, and Lighthouse Credit Foundation as under investigation for illegal telemarketing and stated that the state will initiate legal action to stop them from violating the state's Do Not Call laws. Colorado has issued them an immediate cease and desist, as also reported in AARP ElderWatch.
• Even their home state of Florida has woken up and started to investigate them.
• Budd likes to send threatening letters.
• They are not a good choice if you have credit problems. Read these articles on MSN Money, Banc of America Securities (scroll down to the bottom of page 4), complaints.com, and another in complaints.com.
• KTUU TV in Alaska has a warning about how consumers suddenly found themselves unable to get credit for merely asking ICS to send them information on the quoted rate of .5 percent. For several horror stories about what happens to the people who foolishly signed up with them, read jimloy.com. You probably should also read what the Massachusetts Attorney General says about ICS' business practices.
• Other complaints about them are noted on complaints.com, and the AARP Foundation/Colorado Attorney General AARP ElderWatch.
• Better Business Bureau information: Integrated Credit Solutions has an unsatisfactory rating for "misleading selling practices, unsatisfactory performance, and consumer requests for refunds." Consumers who sign up with Lighthouse Credit Foundation's debt management program have complained about a lengthy time frame in their service; supposedly this has been "addressed and eliminated."
• The Better Business Bureau serving Eastern Washington & North Idaho is a lot less sanguine about Lighthouse Credit Foundation based on a call made to a woman in Yakima.
• Private Citizen has Integrated Credit Solutions on their list of recordings of prevalent prerecorded junk calls.
• Other names associated with ICS are Flagship Mortgage Services, Flagship Capital Services and Lighthouse Credit Foundation. Here's what I've been able to untangle of this web so far (more is coming!):
  • According to the St. Petersburg Times, ICS chief executive Steven McWhorter previously ran Flagship Mortgage Services, the home equity unit of Republic Bank of St. Petersburg shut down in late 1998. Flagship Mortgage Services marketed home equity loans nationwide as a way for high-risk borrowers to escape credit card debt. When investors stopping buying the loans, Republic restructured its mortgage business to focus on selling first mortgages from its branches, laying off 340 employees and taking $7.5 million in charges.
  • Flagship Capital Services (formerly known as "Twenty-First Century Lending Corporation") was (also?) in the residential mortgage business; and apparently in its subprime aspect. Flagship Capital Services says that it ceased these lending activities in approximately July 2000, and now functions solely as a holding company for ICS. Twenty-First Century Lending Corporation filed as a foreign profit corporation on January 1, 1999, and filed its name change to Flagship Capital Services on May 26, 1999.
  • Integrated Credit Solutions (formerly known as "Flagship Capital Arbitrations Services Corp.") is a wholly-owned subsidiary of Flagship Capital Services, and "engaged in the business of marketing and providing call center support for tax-exempt organizations such as Lighthouse Credit Foundation." Since September 2000, ICS "offers for sale consumer credit counseling and debt-management programs developed, managed, operated, and under the exclusive control of Lighthouse Credit Foundation", and define "offer for sale" as "enrolling customers to participate in Lighthouse programs" at an "average enrollment fee of $240." Flagship Capital Arbitrations Services Corp. filed as a domestic profit corporation on April 28, 2000, and filed its name change to Integrated Credit Solutions on June 28, 2000.
  • Lighthouse Credit Foundation, Inc. (formerly known as "Capital Credit Foundation, Inc.") is the "tax-exempt non-profit organization" in whose "behalf" ICS makes the calls. Capital Credit Foundation filed as a nonprofit corporation on July 14, 2000, and filed its name change to Lighthouse Credit Foundation on November 27, 2000.
  • Lighthouse's head honcho is Mary Melcer, a former Republic Bank colleague (senior VP of mortgage banking) of McWhorter and Mickey Malone (Flagship/ICS VP) who is described by the Massachusetts Attorney General in its lawsuit against ICS as having "no previous experience" with credit counseling or managing non-profit organizations.
  • ICS claims not to be affiliated with Lighthouse except by a contractual basis. Let's examine that statement.
  • According to the Massachusetts Attorney General (also read here), Lighthouse Credit Foundation was established by Mary Melcer, a former senior vice president of Flagship who "was, and remains one of the investors in the re-capitalized Flagship...owned, and continues to own, approximately four percent (4%) equitiy." Coincidence?
  • Again according to the Massachusetts Attorney General, in early summer 2000 Melcer "discussed with other Flagship managers" her "establishing a non-profit to service new clients solicited by ICS" and shortly thereafter "left her employment at Flagship and established Lighthouse. Coincidence?
  • Again according to the Massachusetts Attorney General, ICS paid Lighthouse $65,000 in an undocumented transaction to help Lighthouse get started. Initially Lighthouse shared ICS' office space rent-free, and shared the same telephone system. Coincidence?
  • There is a very narrow timeline of events:
    • late 98 Republic Bank of St. Petersburg shuts down Flagship Mortgage Services after huge losses.
    • 01/01/99 Twenty-First Century Lending Corporation files as a foreign profit.
    • 05/26/99 Twenty-First Century Lending Corporation changes its name to Flagship Capital Services.
    • 04/28/00 Flagship Capital Arbitration Services files as a domestic profit, owned by Flagship Capital Services.
    • 06/28/00 Flagship Capital Arbitration Services changes its name to Integrated Credit Solutions.
    • 07/xx/00 Flagship Capital Services ceases mortgage lending operations.
    • 07/14/00 Capital Credit Foundation files as a nonprofit.
    • 09/xx/00 Integrated Credit Solutions starts enrolling customers with Capital Credit Foundation.
    • 11/27/00 Capital Credit Foundation changes its name to Lighthouse Credit Foundation.
    Coincidence?
  • Lighthouse Credit Foundation is at the same address, albeit a different "suite", as Integrated Credit Solutions and Flagship Capital Services. In the original Articles of Incorporation for Capital Credit Foundation, no mention is made of any "suites" in the address. The first occurance of "suite" in Lighthouse's filings appears when they changed their name. Lighthouse has moved about in that building a lot: first it was 210, then it was 150, now 125. Coincidence?
  • The registered agent that created ICS and Lighthouse is the same: Corporate Creations Enterprises at 941 Fourth St. #200, Miami Beach, FL 33139. Coincidence?
  • The original names of ICS (Flagship Capital Arbitrations Services. Corp.) and Lighthouse (Capital Credit Foundation) implied a relationship with Flagship Capital Services. The new names do not. Coincidence?
  • ICS says that its business is for "tax-exempt organizations such as Lighthouse Credit Foundation" (which implies other organizations besides Lighthouse). However, their answer to a subpoena from the Vermont Attorney General for "every [my emphasis] product and service" only discloses the work with Lighthouse.
  • Yet we're supposed to believe in spite of all of these coicidences that ICS and Lighthouse have no relationship with each other other than a "contractual" one.
  • The Florida Attorney General's Economic Crimes Division civil investigation seems to lump them together as a single entity under investigation.
• One thing to remember about "debt consolidation" companies is that they are bottom-feeders...and you are their food! Some are quite a bit more reputable than others. However, keep in mind that these companies are making money from you (the sign-up fee and cuts out of the payments you make to them to pay your creditions); money that could be put into reducing your debt. You are likely to get an adverse rating on your credit report just for dealing with them; and if they make a late payment, or miss a payment, to one of your creditors, you will get an adverse rating on your credit report.
• The mere fact that you talk to these people is enough to get your creditors to close your account and place a note on your credit report that you are using a debt management service (and thus are a bad credit risk).
• Here is what the Massachusetts state senate has to say about the credit counseling industry: "Abuses have been widespread in this industry", "more than three-quarters...are operating illegally", "these firms are essentially unregulated", "seriously harming consumers by charging high initial costs, failing to make payments to creditors as promised, tarnishing credit records, and engaging in questionable business practices."
• If you're still not convinced that you should avoid debt management companies like the plague that they are, read jimloy.com for even more details of what happened to people who didn't.
• If you are unfortunate to have gotten yourself over your head in debt, try MSN Money's Debt Consolidation Calculator to see what you can do on your own. You're likely to calculate a repayment strategy that will pay off your debts much faster than going through a "debt consolidation" company. Even better, running a calculator won't put a black mark on your credit rating.
• Here's an account from an ex-employee of ICS about its inner workings.
• Other phone numbers: (800) 747-8121, (888) 976-4663, (727) 532-9155.
• FAX numbers: (800) 637-7537, (727) 533-8925.
• A related company, Simplified Data Solutions, with the same address as ICS, is also telesleazing for Lighthouse Credit Foundation's "services."
  • Florida currently has SDS under administrative dissolution because the registered agent resigned as of November 1, 2002.
  • Kentucky has filed lawsuits against SDS.
  • As recently as March 2003 New Hampshire Public Radio has posted a warning about SDS entitled "Telemarketing Scam Hits NH."
  • When I get more time, I'll research and post more information about SDS.
• Still another company, Debt Relief Foundation (also known as DRF), is illegally telesleazing for Lighthouse as reported by KTVA in Alaska.
• I have a report that the name-change game continues, and they're now telesleazing as Debt Gone.
• Note: Lighthouse Credit Foundation is not related to Lighthouse International, a fine organization that assists the vision impaired. Lighthouse International had to put up a web page stating that they had no relationship with these guys, and that they had complained to the New York State Attorney General.

• Date: 22 April 2002 3:42PM
• Address: 6220 Orange Blossom Trail, Suite 320, Orlando, FL 32809
• Caller ID: none
• Recording: instructions to call (888) 329-7577. Private Citizen has an audio recording of a typical recording. Here's another one.
• Script: The Southeast Texas TCPA site has transcribed the text as being similar to the following:
  Hi, uh this is Andy. Sorry I missed ya. Normally I'd mail you an invitation, but due to the mail situation, we decided it would be better to call. The reason I'm calling is to personally invite you to a free, hands-on demonstration of the most exciting new product line ever. We're going to be presenting this new product for the first time in your area for those select individuals who want to change their family's lifestyle. It's not a get-rich-quick scheme, it's a real business. In fact, there's nothing you can purchase and there is no sales pressure to do anything, so leave your checkbook and credit cards at home. By simply attending, you will, however, receive a two-night, three-day vacation certificate for a wonderful resort destination. So, uh, if you are serious about owning your own business in an eight-billion-dollar-a-year industry with a product consumers use every day, and generating a six-figure income with no out-of-pocket expense, let us show you how in our two-hour presentation. Our seating is very limited, so call us now to reserve a seat for you and a guest. Call us today toll-free, at (888) 329-7577.
• Response when called: I spoke to a very obnoxious man who claimed that they left their recording on my voice mail system instead of calling. That is false; I picked up the call. Apparently their fancy equipment can't tell the difference between the No Solicitation announcement and voice mail. He kept on yammering that I should speak with their lawyer.
• Response to demand letter: Gerald K. Burton, OneSetPrice's "house counsel", made a thuggish threat to sue me if I had the temerity to take action against OneSetPrice in Washington State court, and that "under no circumstances" would they ever pay civil damages. Burton also claimed that the purpose of the call was to "invite" me to "a free seminar."
• Burton has sent other such letters. Apparently, intimidation is his job function.
• Burton's latest ploy is to claim that federal law trumps Washington State law. Integrated Credit Solutions has tried the same thing.
• Besides being unethical (duh), Burton is an admitted liar. For some time, he insisted that it is "impossible" that their automated call could have reached me personally, and that instead it was delivered to my "answering machine." I don't have an answering machine! It was only after he was forcibly confronted with facts that he admitted that he was not lying; in a three-page diatribe to the Better Business Bureau dated September 25 he confessed that "on occasion [their equipment] does not disconnect immediately."
• Burton also lies when he says that OneSetPrice will never settle. I have two confirmed instances of them settling.
• Burton also says that he "does not know where [I] am coming from...a very few people, a very small fraction of 1%, object to the manner in which OSP does business." Is it really true that more than 99 out of 100 people approve of receiving automated telemarketing calls?
• Burton apparently does not like this bad publicity. He has said that he is going to threaten my ISP to get them to take this page down or disconnect the entire panda.com site. It evidentally has not dawned on him that none of this would have happened if, instead of sending me threatening letters, his company had just paid the civil damages that they legally owe me.
• Here is what the court-appointed receiver has to say about what they discovered about OneSetPrice and its associated companies. It is grim reading. A lot of people were hurt by these crooks.
• Private Citizen has OneSetPrice on their list of recordings of prevalent prerecorded junk calls.
• Information gleaned from the Better Business Bureau web site and OneSetPrice's own web site: It's a franchise offering. The "free seminar" is a hard-sell that offers a "business opportunity" (entry cost between $16,470 and $51,470) to sell long distance telephone cards (at 5-10 cents/minute) using VoIP. Supposedly, you'll make lots of money selling these overpriced cards.
• OneSetPrice was a member of the Orlando Better Business bureau, but that membership was revoked on August 28, 2003, and OneSetPrice has an unsatisfactory rating "due to unanswered complaints".
• 1SetPrice is their affiliate that markets long-distance phone service.
• Colorado has issued them an immediate cease and desist for no-call violations. That apparently was not enough, since Colorado sued OneSetPrice for continuing to call and obtained $25,000 in settlement as well as a permanent injuction. Read the text here. What's really funny is that the Rocky Mountain News reports that Burton claimed that the calls were "totally unintentional" and blamed "incompetant employees." OneSetPrice defaulted on this agreement and one with the state of Florida, and moved to Tennessee.
• Maine has also spanked OneSetPrice for violations of its laws and regulations.
• Other phone numbers: (407) 438-5053
• FAX numbers: (407) 438-5468.
• Latest news:
  • A Seattle lawyer took OneSetPrice to court and sought treble damages under 42 USC 227(b)(3) and RCW 19.86.090. OneSetPrice first offered to settle for $400 with a confidentiality and non-competition clause. They finally settled for $900 with no such clauses.
  • OneSetPrice has settled with other individuals. Their standard procedure seems to be to ask the court to allow them to attend by telephone, and only after that is turned down do they settle.
  • I have an unconfirmed report that some people in New Mexico are considering legal action against OneSetPrice after signing up and having less than positive experiences.
  • Here and here, and here are reports from multiple individuals who report getting ripped off by OneSetPrice.
  • The Orlando Better Business Bureau reports that Paul Bonnallie and David Cutler from OneSetPrice spawned a new business, Platinum Plus Savings. They apparently jumped back to OneSetPrice, and Tom Dahl (erstwhile OneSetPrice National Training Director) is now the CEO of Platinum Plus. Platinum Plus telemarkets to suckers who pay up to $39,995 for the right to sell $49.95 "merchant discount" cards, and also has an unsatisfactory record with the Better Business Bureau.
  • A class-action suit against OneSetPrice has been filed in California.

• Date: 8 July 2002 10:36AM
• Address: 535 W. Smith, Kent, WA 98032 (VACATED)
• Caller ID: (253) 850-5390, name EMERALD CITY TO
• Recording: shilling trips to Las Vegas. I did not get their 800 number.
• Response when called: I located their primary voice number in the phone directory. The receptionist admitted that the calling number was one of theirs and that they use automated telemarketing devices. I therefore gave her, for transmission to her masters, an oral offer to settle if they would pay me $300 without necessitating me to take them to court. I repeated that offer in the demand letter mailed the same day.
• Response to demand letter: none. This company has been fined $16,500 by the state of Oregon for similar activities.
• Other phone numbers: (253) 850-8484
• Latest news: Emerald City Tours has vacated the premises and can not be served. Bye-bye, sleazebags.

Laws to Use to Sue Automated Telemarketers

Washington State law regarding automated telemarketers is RCW 80.36.400.

Additional Topics

Harassment from telemarketers.

Other Resources

Here is a resource for Oklahoma state residents. In Oklahoma, automated telemarketing calls are a criminal (as opposed to civil) offense and hence a police matter. Bravo Sooners!

Pennsylvania residents click here for a resource from your Attorney General's office.

Here is a longer list of illegal telemarketers that have attacked the phones of consumers in Texas, including of the ones listed above.

Washington State residents can file a complaint with the Attorney General's office here.

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