Telemarketing’s Top 10 Ways to Say Goodbye to Your Money

Well, the results are in. According to the National Consumers League, 1999’s most commonly reported telemarketing fraud was . . . work-at-home schemes.

Gripes about these popular, but seldom lucrative, business opportunities jumped from No. 5 in 1998 to No. 1 last year. Consumers typically pay big bucks upfront for kits with the guarantee that they can use them to start home businesses. The promised profits prove illusory, however, and the kit sellers often refuse to honor refund policies, the organization reported.

Among the most common work-at-home schemes: envelope stuffing, craft-making and medical billing.

Rounding out telemarketing’s terrible 10:

* Phony prizes and sweepstakes.

* Telephone “slamming,” in which consumers are switched to a different service provider without their permission.

* Telephone “cramming,” in which consumers are billed for services they never ordered.

* Advance-fee loans, in which consumers pay upfront fees for loans that never materialize.

* Bogus magazine sales.

* Phony credit card offers.

* Deceptive travel offers.

* Unnecessary credit card insurance.

* Investment schemes.

California is apparently a telemarketing fraud exporter. The state is home to 23% of the companies that garnered complaints, leading the nation. By comparison, just 16% of the people who complain live in California, second to Florida with 20%.