Hikind Enlists Gillibrand to Take Aim At Predatory Marketers

For Immediate Release

Contact: Yehudah Meth

718-853-9616 (office)

973-945-4903 (cell)

HIKIND ENLISTS GILLIBRAND TO TAKE AIM AT PREDATORY MARKETERS

GILLIBRAND DEMANDS ANSWERS IN WRITING FROM FEDERAL TRADE COMMISSION

Assemblyman Dov Hikind (D-Brooklyn) is working with U.S. Senator Kirsten Gillibrand to put an end to predatory marketing practices that are plaguing many New Yorkers. Identifying companies that masquerade as “Tax Debt Relief” consultants, the Assemblyman says marketers who fool some New Yorkers into doing business with them under false pretenses must be stopped.

“I became aware that many cases of fraud seem to bypass current regulations,” Assemblyman Hikind explained. “Numerous ‘Tax Debt Relief’ companies send promotional materials to New Yorkers in the form of official-looking letters meant to trick recipients into believing they must deal with the company. Such predatory marketing practices begin with a letter that arrives in a nondescript envelope which does not identify the sender. The letters are marked ‘Penalty for tampering’ or ‘Personal and Confidential.’ I myself received such a letter.”

Inside these official looking letters are commercial promotional offers that lack company names but instead used bold terminology usually reserved for the IRS: “Important Notice of Federal Tax Lien” and “Notice of Enforced Collection Activity.” Borrowed from the public record, such terms used in conjunction with a consumer offer are deceitful at best, explained Hikind. Further, these letters may target lists of consumers who have had tax liens placed against them.

“The FTCs FDCPA addresses ‘misrepresentation of services’ but only in the form of a company’s inability to perform a promised service or achieve a specific result,” explained Assemblyman Hikind. “Companies are not prevented from misrepresenting the context of their services nor from intimidating potential clients with misleading statements. Certain letters reference the IRS and imminent actions they may take against the recipient.”

The Assemblyman contacted Senator Gillibrand requesting an investigation into the matter and the Senator has now brought the issue to the appropriate individuals at the Federal Trade Commission. Senator Gillibrand also requested a review of the matter and a written response.

Assemblyman Hikind is asking that companies:

· Be required to clearly and visibly identify their company’s name and address on their mailed envelopes and all printed communications.

· Clearly state Advertisement or Promotional offer at the top of offer letters and envelopes.

· Note that while the recipients’ information may have been taken from public record, it may no longer be valid, and the debt may no longer be outstanding.

“I believe these amendments to the FTC’s FDCPA will better protect consumers,” said Assemblyman Hikind.