A New Threat - Negative Option Marketing

I read a very disturbing article in the September 2009 edition of the AARP Bulletin. Have you ever opened a bank statement to find an insert offering insurance coverage? I toss unsolicited material into the trash, but that can be a costly mistake. Thanks to author Sid Kirchheimer for alerting us to this new scam, insidious because it comes to us from a trusted source.

Bank of America, and likely other banks, has teamed up with third-party vendors to supply bank-branded insurance. The problem is, those enclosed flyers are not invitations to order insurance, they are NOTIFICATIONS that you have been enrolled, and if you do not wish to have their coverage, YOU MUST CANCEL the service within a specified time period, typically 30 days.

If you do not cancel, monthly payments will be automatically deducted from your bank account, without your authorization. Reports are that it can be quite difficult to stop the deductions once they have started. And incredibly, Mr. Kirchheimer assures us that these automatic sign-ups are legal, unless you’re lucky enough to live in a state that doesn’t allow companies to sign you up without your express consent.

So please, protect yourself and check all bank statements carefully.

The full article can be read at http://bulletin.aarp.org/yourmoney/scamalert/articles/taking_no_for_an_answer_.html (too long? Use this link: http://tinyurl.com/n2vxgj)