Date: Sun, 8 Nov 1992 21:51:49 GMT
From: nagle@netcom.com (John Nagle)
Newsgroups: comp.dcom.telecom
Subject: New 900 Number Scam - Credit Collection/Telecompute/West Penn
Organization: Netcom - Online Communication Services  (408 241-9760 guest) 
X-Submissions-To: telecom@eecs.nwu.edu
X-Administrivia-To: telecom-request@eecs.nwu.edu
X-Telecom-Digest: Volume 12, Issue 828, Message 6 of 7

I've uncovered what appears to be a new 900-number scam.

I received a collection letter which reads as follows:

"Credit Collection Center
 P.O. Box 610894
 Miami, FL. 33261-0894
 305-945-8441			Creditor: West Penn Audio
				Number: 900-420-4747
				Amount: $5.00
   ...

	"The amount(s) listed in the above statement are charges
incurred as a result of your use of (900) telecommunications services
offered by the above creditor(s).  These services were originally
billed to you by your local phone company on behalf of the creditor(s)
and appeared on the (900) section of your phone bill.  At your
request, your local phone company removed the charge(s). The telephone
company has referred these disputed charges back to the "900
Information Provider".  Do not contact your local phone company since
they can no longer be of assistance.  The amounts listed above have
been placed for immediate collection and we intend to collect" [This
last in boldface.]
   
"PROTECT YOUR CREDIT. PLEASE REMIT PAYMENT WITHIN 10 (number partially
crossed out with crosshatching) DAYS RECEIPT OF NOTICE TO AVOID FURTHER
ACTION".

"If your telephone service has been activated with the last four months
call this office." 

			Credit Collection Center

			1-305-945-8441

                        ------------------

This seemed a bit strange, for while I have some 900 charges, I've
never asked the local telco (Pac Bell) to cancel any of them.  So I
called the "Credit Collection Center" and reached a "Mr. Grant", who
refused to discuss any adjustment, refused to tell me who "West Penn
Audio" was, told me that if I didn't pay, something would be placed on
my credit report, and hung up.  A second call reached a different
person, who said she was unable to give me the date of the call or
tell me who West Penn Audio was, but did tell me that the date of the
supposed chargeback transaction was March 9, 1992.

So I decided to check this out.

     Pac Bell's local billing office was quite cooperative, proiding
me with copies of the bills for the period of interest (no sign of any
call to the indicated 900 number) and a letter stating I had never
requested such an adjustment.  AT&T billing was similarly cooperative,
providing copies of bills from their end, and the information that the
900 number was now defunct, but had been in use from 12/1/91 to
3/31/92 under the name "Info on Region A", by Telecompute Corp, 1275 K
Street NW.  STE ,G-9, Washington, DC 20005.  Calling Telecompute
(202-789-1111) reached a Mr. Paul Besic, who told me that Telecompute
was a service provider for other 900 services; they didn't provide
content, just the technical end.  He said "they didn't use collection
agencies" and didn't remember West Penn Audio, but said he would check
and get back to me by the end of the day.  He didn't.

       Following up the West Penn Audio thread led, via the
Pensylvania Secretary of State's office, to West Penn Audio Inc, 747
South Avenue, Pittsburgh PA 15221.  This is a Pittsburgh-area dating
service.  I reached a Mr. Richard Caldwell at 412-366-4848, who
confirmed that they used Credit Collection Center of Miami FL and
Telecompute Corp. of Washington DC.  He identified the 900 number
indicated as a "Numerology Hotline" (I vaguely remember calling
something like this once, and I do have proper bills for 900 charges
to some wierd numbers.  But not for this one.)  He was polite, and
told me they no longer used Telecompute because of problems in the
past.  Caldwell said they send Credit Collection a tape, and Credit
Collection does the rest.  But he didn't seem clear on where the data
comes from.  I didn't ask for an adjustment; by now I was reasonably
convinced I'd found a scam.

       Further checking produced the expected: Credit Collection
Center of Miami FL isn't a member of the Better Business Bureau or the
Chamber of Commerce, but they are at least a valid Florida corporation
located at 13499 Biscayne Blvd, Suite #208, Miami FL 33181.  West Penn
Audio isn't a member of the Pittsburgh Better Business Bureau, but
they are a valid Pensylvania corporation.  Telecompute just seems to
be in the middle.  (Any relation to Telesphere, the bankrupt
900-service provider and Alternate Operator Service for high-priced
payphones and motels?  Don't know yet.  Anyone have info?)

      I posted a previous message to TELECOM Digest, asking simply if
anyone else had received a similar letter.  Two people have thus far
responded reporting similar letters, with one referencing the same
phone number and dollar amount.  Very suspicious.  I wonder how many
they sent out.

      Generating large numbers of phony bills for small amounts is an
old scam, and this seems to be a new variation.  What is going on, I
suspect, is that this Credit Collection outfit is buying lists of
people who at some time called some 900 numbers, and then sending them
bills for small amounts for some arbitrary 900 number, figuring few
people will check their bills.

      I'm filing a complaint with the Dade County (FL) office of
consumer protection. (305-375-4222 or 305-375-4178).  If you have
received a similar letter, please BOTH call them and E-mail or post
that information.  These guys can probably be shut down with a little
work.


John Nagle


[Moderator's Note: While it is possible the outfit in Miami might be
very sleazy, I doubt there is anything sinister about this. There are
collection agencies which handle unpaid charges to 900/976 services
after they were returned uncollectible by telco.  I suspect someone
(maybe the middleman mentioned above) got some billing tapes mixed up
somehow. Either he did not want to 'fess up when you called, or maybe
the numerology consultants were the ones to bungle their work. I don't
think the collection agency is involved in it; they just agreed to try
and collect a bunch of five dollar charges for the numerology people.
If enough people like yourself have raised stinks with the collection
agency, by now the agency may well have packed up the whole load of
accounts and sent them back to their client saying they were not
interested in handling so many disputed claims, etc.  I know the
attornies I work with *used to* represent a certain nameless telco in
the pager business. Telco's records were so bad, and the disputes by
customers so plentiful we dumped them as a client. The Miami agency
may have done the same with the numerology people by now.  And yes,
900 services can bill you direct and place you in collection if they
wish, although not many bother with it.  PAT]