Watch Your Finances Carefully: Negative Option Marketing

I'm hoping my household is the only one among us to be hit by the 'negative option' marketing technique.

Some time ago, we noticed a $10 charge on our credit card that we couldn't account for.  When we called the number that our credit card company listed for the originator of the charge, we were told that an ad had been sent to us through the mail-and since we didn't respond that we were uninterested in the product, -it was immediately charged to our credit card account.

My first question is this:  How do these people get our credit card account in the first place?  I have to assume that we had purchased something earlier from this company or one owned by the same overseeing group of companies-somewhat like the unrequested catalogues that come in the mail because a connected catalogue company to which we do subscribe has shared our info.

My second question is this:  Can this 'negative option' marketing practice be legal?  According to the AARP Bulletin, Sept. 2009, the answer is yes!  If the offer contains all of the legal language required by law.

The article in the AARP Bulletin, "Taking No for an Answer" (22) by Sid Kirchheimer  indicates that you have a certain amount of time to respond with a resounding "No, I do not want this product!" or charges start accruing on your bank statement or on your credit card.

The article concentrates on insurance policies offered by banks;  these policies are sold by "third-party vendors" over the phone or by mail. That might explain the way these merchants gain access to credit card info.

We had to cancel our non-purchase in order to have it taken off of our credit card debits.  AARP suggests the following: 

1. Review bank statements. You have 60 days to dispute charges on mailed statements.
2. Beware of free trial offers.  They are often negative option programs.
3. Request a contract.  In some states, an offer...cannot be legally accpted 'by the silence' of the customer.
4. Send certified letters, with return receipt notifications, asking companies not to send you information about company-branded programs.

And my favorites among the suggestions!  Contact your state attorney general and file a complaint with the Federal Trade Commission at http://www.ftc.gov/ or call 1-877-382-4357.  (AARP Bulletin, Sept. 2009,22)

We learned the 'watch your finances carefully' lesson and hope you won't have to go through the cancellation of goods and / or services you didn't order in the first place!