Online directory agrees to pay up

BOISE – Six thousand businesses across Idaho got checks in the mail over the past three years that appeared to be free money, so they cashed them.

But the extra-fine print on the checks said that by depositing or cashing the checks, the businesses were agreeing to sign up for an out-of-state online Yellow Pages directory service costing between $19.95 and $39.95 a month – and to pay in advance.

Now, Idaho has joined 33 other states in a settlement over deceptive billing practices that will mean thousands in refunds to the affected businesses.

Arizona-based YP Corp. and its subsidiary, Telco Billing, didn’t admit to any wrongdoing under the settlement, but agreed to refund up to four months of the monthly fees to the businesses that cashed the checks, which generally were for $3.50.

The monthly fees were charged to the businesses’ telephone bills or debited from the bank account to which the business deposited the check, among other methods. That kept the charges from being noticed right off.

“In some instances, the recipient remained unaware that it was being billed by YP.com for several months, if not years, after it deposited the activation check,” said Idaho Attorney General Lawrence Wasden.

Telco Billing did business under the names YP.com, YP Corp, and Telco Billing Inc.

“Yellow Pages” is not a registered trademark, the Idaho attorney general’s office noted in a news release, and “the name has frequently been used to advance deceptive and misleading business schemes.”

This is the second such case the attorney general’s office has handled this year. Earlier this year, Idaho settled a lawsuit with Yellow Pages Inc., a Nevada corporation that also sent deceptive solicitations, including checks, to Idaho businesses and individuals.

Businesses that are being billed or charged by YP Corp. should receive a letter from the firm within the next two weeks and must then file a claim with the company to get a refund. Those that already have canceled the service can file claims with the attorney general’s office.

“If your business or organization receives a letter from the company indicating it is a settlement or refund notice, I encourage you to read it carefully,” Wasden said.

For more information, call the consumer protection unit of the attorney general’s office, (800) 432-3545.