Fast-Talking Potential Clients Into Services They Don't Want or Need is Bad Business - and Ethically Questionable

I think the following experience that I had yesterday is instructive for lawyers, even though it isn't directly related to the practice of law.

I accept credit cards from my consulting clients because often it makes paying easier for both them and me. Yesterday I received a call from one of the credit card companies with whom I have a merchant account. The caller identified themselves as a representative of a particular credit card company and indicated that the purpose of the call was to verify certain information they had on file - essentially the name of the business, the business address and the name of the contact person they had on file. All of this was information that is easily obtainable elsewhere, so I wasn't suspecting anything. Then I was told that they would be sending a packet of information about their merchant services for my review. The caller spoke very fast, but even so, I don't think I missed anything up until that point in the conversation.

Next, the caller indicated that he would be recording the rest of the call and once again went through the verification of the above information. But this time when he got to the end, he asked whether I was the person 'authorized to accept' the 'Merchant's Protection Plan.' That was when I stopped him. As the owner of the business, I'm 'authorized' to do pretty much anything. But what he'd told me before was that he was going to send a package of information to me. He didn't say anything about a 'plan' of any kind.

Finally catching on, I said that my understanding was that he was sending me some information, not that I was signing up for any kind of plan. I asked what the cost of the plan was (because, of course, there was a cost). He told me, but then advised that I would be enrolled for the first 30 days with no obligation and could cancel any time thereafter. None of this had been mentioned before he turned on the recording.

At no time was there any discussion of what the plan entailed, the benefits of the plan, or the value of the plan to me as a business owner.

It was clear to me that the company was attempting to fast-talk me into 'enrolling' in a plan that would be automatically charged to me after the first 30 days without first explaining clearly what was happening. Of course, I declined the 'offer,' letting the caller know that I was not interested in 'enrolling' in anything that would obligate me to cancel if I didn't want it or be automatically charged.

While I don't necessarily have an objection to services that include a free trial period, followed by an automatic monthly charge, ethics require that the terms be clearly explained to the client/customer before enrolling them in any such 'plan.'

In this instance, had I not asked, the monthly fee would never have been mentioned during the call. I have to wonder how many people this tactic has duped into paying for a 'plan' which they never actually understood they were enrolling in? I caught it in time with the combination of the recording of the call and the use of the word 'authorized,' but how many busy workers might not have?

Although I have clients that favor the use of this particular credit card, I am seriously considering terminating my relationship with this credit card company as a result of this call. While I can't really say that it was a 'scam' per se, and the monthly fee was relatively minor, the tactics were underhanded and left me questioning the value of my relationship with this company as well as their ethics. After all, if the plan was such a worthwhile one, why couldn't the caller speak slowly and demonstrate the value of the plan, rather than trying to rush me into something without explaining it fully?

Some lessons from yesterday's experience:

1. Be very careful, even when just "verifying" publicly available information over the phone (and of course, never, ever give away information such as your social security number, credit card or banking information on the phone or over the internet unless you are very certain who it's going to and that it's secure);
2. If someone is speaking very quickly on the phone, it should raise a red flag. Ask them to slow down and/or repeat themselves if necessary;
3. As a lawyer who is selling your services, be very clear about the terms of any agreement you enter into with your clients and be sure they are clear on those terms as well before charging them for anything;
4. Know the value of the service you provide, and be prepared to articulate that value to clients and potential clients;
5. Never, ever breach your clients' or potential clients' trust by trying to pull the wool over their eyes, fast-talk them into a service they don't understand, want or need.