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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’S “LIVE CHECK” BILL PASSES HOUSE
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.
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