March 18, 2010

FALK’S “LIVE CHECK” BILL PASSES HOUSE
Legislation would prohibit deceptive solicitation schemes

ST. PAUL, MN - State Rep. Andrew Falk’s (DFL - Murdock) effort
to put an end to “Live Check” mail schemes passed the Minnesota
House today with broad, bipartisan support by a vote of 103 to 30.
Falk’s bill (HF2599) seeks to protect Minnesotans from deceptive
marketing schemes in which companies send Live Checks to Minnesota
residents in order to rope unknowing consumers into months of exorbitant
fees for services they don’t want.

“Live Check schemes are all too common these days,” said
Rep. Falk. “Usually the people these companies target are some of
Minnesota’s most vulnerable - particularly senior citizens.”

Live Check schemes are relatively common. In a typical Live
Check solicitation, a consumer receives a check for a small amount -
usually 10 or 15 dollars - and cashes it, believing the check is a “no
strings attached” refund, or rebate.

Unbeknownst to the consumer, by cashing the check they are
agreeing to enroll in an unwanted service that imposes outrageous
ongoing charges and fees. The consumer is often unaware that the company
sending the Live Check already has access to charge the consumer’s
credit or checking account through an agreement with another company.

“In many cases, people don’t know they’ve been tricked until
it’s already too late,” Falk said. “Unknown charges and fees
start showing up on their credit card or bank statement for high-cost,
low value products or services they don’t want.
“Soon what looked like a quick ten bucks turns into a hundred-dollar
headache.”

Falk’s bill would stop these unscrupulous companies from
preying on Minnesota consumers. Like Nebraska, Utah, and Alaska have
already done, HF2599 would ban the use of Live Checks as a deceptive
marketing practice.

Rep. Andrew Falk can be reached by phone at (651) 296-4288 or by email
at rep.andrew.falk@house.mn