ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Friday, January 31, 1997 TAG: 9701310028
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
SOURCE: MEGAN SCHNABEL STAFF WRITER
Bob House has gotten his share of unwanted telemarketing calls, and more than a few have sounded far too good to be true.
"I don't know whether they target by age or what," said House, who works with the LOA Area Agency on Aging in Roanoke. "But you get these phone calls, and you can't get rid of them."
House hangs up on persistent solicitors. But not all older people are willing to do that, and so they are hit with more than their share of fraudulent offers, according to studies by the American Association of Retired Persons.
That's why House and other seniors advocates - as well as local law enforcement agencies and national consumer groups - are closely watching legislation introduced last week by U.S. Rep. Bob Goodlatte, R-Roanoke.
The Telemarketing Fraud Prevention Act wouldn't put an end to unwanted calls. But, by stiffening penalties for fraudulent telemarketers - those who take payment but fail to deliver products or services, for instance - it might cause con artists to think twice before launching a scam, Goodlatte said Thursday.
Under the proposed legislation, scam artists who defraud vulnerable consumers - such as the elderly - would face harsher penalties than under existing sentencing guidelines. The stricter sentencing also would apply to con artists who set up business across international borders to evade prosecution. Canada in particular has become a hotbed of fraudulent telemarketing companies in the year since U.S. telemarketing laws were strengthened, according to the National Consumers League.
The bill also would allow authorities to seize scammers' illegal profits. Victims would be repaid, and the remainder of the seized property would be put toward fraud-fighting programs such as the National Fraud Information Center hot line.
Goodlatte's bill, which has several dozen co-sponsors, tackles a different side of telemarketing than a bill before the Virginia General Assembly. That legislation would create a list of the state's consumers who didn't want to be bothered by telemarketers and would require penalties for callers who didn't abide by the roster. It would not deal with fraudulent businesses, however.
According to the National Consumers League, telemarketing fraud costs U.S. consumers $40billion annually.
"You can't legislate against human nature," said Hank Hough, a vice president of the nonprofit 60 Plus Association, based in Arlington. "But we can create an atmosphere wherein the criminals decide that the risk isn't worth the potential reward."
To report suspected telephone fraud or inquire about a solicitation, call the National Fraud Information Center toll-free hotline, (800) 876-7060. Or visit the NFIC's Internet site, http://www.fraud.org.
LENGTH: Medium: 57 lines KEYWORDS: GENERAL ASSEMBLY 1997by CNB