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State Representative Andrew Falk
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4228
For more information contact: Matt Swenson 651-297-8406
Press/News Releases
FALK BILL WOULD END "LIVE CHECK" FRAUD
ST. PAUL, MN – Have you ever gotten a check in the mail that made you scratch your head and ask: Is this thing real? Odds are that 10 or 15 dollar check is too good to be true – and if you cash it, you’re liable to get caught up in a litany of exorbitant fees.
A bill (HF2599) authored by Rep. Andrew Falk (DFL – Murdock) would make these deceptive “Live Check" schemes illegal in Minnesota.
“Unfortunately, this “Live Check” scheme is all too common these days,” said Rep. Falk. “And usually the people who fall victim to these crooked checks are some of Minnesota’s most vulnerable people – particularly senior citizens.”
“Live Check” solicitation 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 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.
The bill passed out of the Labor and Consumer Protection Division today with unanimous, bipartisan support. The bill will be heard next in the House Commerce and Labor Committee. In the meantime, Rep. Falk urges all Minnesotans to be wary of Live Check rip-offs.
“If it seems too good to be true, it probably is,” said Rep. Falk. “Minnesotans should be vigilant in protecting themselves from these schemes and others like them. Oftentimes the difference between a good deal and a scam is right in the fine print.”
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