DCS Holdings Group, LLC
Notice of Proposed Rulemaking Seeking Public Comment on Proposal to Ban Payment Methods Favored in Fraudulent Telemarketing Transactions; FTC Matter No: R411001
We read with interest your assumptions regarding "novel payment methods" and wish to point out the following: Controlling or prohibiting novel payment methods may create unintended consequences for those legitimate users and consumers. Novel payment methods have been around for many years and in some cases (RCC's) predate the Check21 Act. Further we do not have quantifiable data concerning how many businesses depend on one or more of these methods. Many consumers buy from telemarketers. Making the use of these methods a crime will have a chilling effect on all banks. As a former banker why would i expose my bank to any RCC business since i can not be absolutely sure it is not originated from either in inbound or outbound telemarketer - especially if i am offering commercial banking services to Mobile Commerce, E Commerce, Law Firms, Pharmacy, Third Party Processors etc. The unintended consequence of Denial of this payment method by Banks will be to damage consumers and business. We also note that no data is presented of all "novel payment methods" in the National Banking system compared to the number of "novel payment methods" you have tied to telemarketing fraud. We agree that telemarketing and payment fraud are issues and need to be monitored, when possible controlled and, ultimately, punished. We suggest stronger registration of telemarketers and their fulfillment company. Require all banks and third party processors only do business with "Registered" telemarketers and as a condition of that opportunity require monitoring and quantifying all payment types processed for returns, volumes, velocity patterns etc. This data will be available not only to the regulatory community but also to law enforcement. We believe this will do more to control fraud than the proposed rule and be less disruptive to consumers and businesses since rather than targeting payment methods you will be regulating the industry and require accountability.