This Colorado man is making thousands of dollars off robocalls – here’s how

BRIGHTON, Colo. (KRDO) -- Spam calls, more specifically those made with auto-dialers known as “robocalls,” have been plaguing American consumers for years; but what if there was a way to fight back that involved simultaneously making thousands of dollars?

Many people are doing it, including Clint Steiner of Brighton, Colorado.

"It was one call. The guy called me and I settled for $1,000 in about 20 minutes,” said Steiner.

Steiner, who regularly takes calls from his home office, has been cashing in from robocalls for over two years.

"It's well into the five figures, mid-five figures for sure,” he said.

It’s been a lucrative side hustle, but Steiner is more driven by the fact that his methods have shrunk the number of spam calls coming in.

"You just want your phone back. Looking at your phone and seeing missed call, missed call, missed call, deny, deny, it's annoying,” he said.

"I mean, it drives me crazy. I don't want to be taking phone calls about a car warranty. If I want a car warranty I can find a car warranty. I don't need a phone call to tell me I need a car warranty,” said Steiner.

"The goal of this is not to get more calls. It's to stop the calls."

The Federal Communications Commission says people in the U.S. received nearly four billion robocalls per month last year. It says fighting robocalls for consumers is the number one complaint they receive, and it’s now their number one priority.

There are several ways American consumers have tried to stop spam calls over the last several years:

• Blocking the incoming phone numbers (which doesn’t work because most numbers are illegally spoofed).
• Using your cell provider’s spam blocking app or call filter.
• Joining the National Do Not Call Registry.

However, despite using all these measures, companies are still breaking the law, finding ways to reach your phone via call or text.

So how exactly do people like Steiner fight back? They utilize the Telephone Consumer Protection Act (TCPA).

Unless companies have your expressed, prior, written consent, all robocalls are in violation of federal law. The TCPA makes it illegal for marketers to call you using an auto-dialer. In fact, each illegal call has a penalty of up to $500. And if you’re on the Do Not Call Registry, that penalty can triple, up to $1,500 per call.

Since these companies hide their identities, finding out how is behind the phone call, or text, can be tricky. That’s why some people are buying a guide titled “Turning Robocalls Into Cash,” written by consumer law expert Doc Compton.

"I was getting 15 to 20 calls a day just like many Americans are right now ... and I decided that I was going to try something that nobody, that I knew of, had ever done. I took one of the demand letters I used to use when I was working for a law firm, took the attorney letterhead off, sent it out, and see if they would negotiate with me in much of the same fashion they typically would a law firm. And to my delight, they did,” said Compton from his home office in Texas.

“And the very first time I tried it I was able to secure a $2,000 settlement with a company that wanted to 'purchase my home.' About a week later I was able to secure a $3,000 settlement from one of the auto warranty companies,” he said.

Because of Compton’s kit, which includes template demand letters to send to the robocalling companies, people are simply learning how to hold illegal callers accountable, enforce the law and hopefully discourage them from calling again.

"Essentially the kit is a step-by-step plan that teaches you how to take calls from the robocallers, how to pull information from them, that will allow you to identify the source of the calls. And then, template demand letters that you can fill in the blanks and send out to these robocallers and hopefully get them to negotiate settlements with you,” said Compton.

"People are often discouraged because they hear a foreign-sounding voice on the other end of the line. But in reality, they are U.S.-based companies that have hired these overseas call-centers and you can go after the company here in the United States that hired the overseas call-center,” he said.

There are two types of robocalls: “Cash calls” and “Trash calls.” Trash calls are scams, people just looking for information so they can steal from you. “Cash calls” are legitimate companies, using third-party auto-dialers, trying to sell something to you; those are the companies you can go after.

Also covered under the TCPA? Text messages and ringless voicemails.

But why would robocallers want to settle with you?

Because they know what they’re doing is illegal; if they go to court, not only will their name and procedures be ousted, but the court costs, and potential fines from the FCC, far outweigh any out-of-court settlement they will be paying you.

"It seems amazing but these companies really are making so much money that if they have to pay out a small amount in settlements or judgments awarded by courts around the country, it's the cost of doing business,” said Compton.

I've actually had robocall companies tell me they look at it as an advertising expense. They simply don't care.”

Compton also explained how legitimate companies pay for the leads they receive through robocall centers and that one way to fight back is by simply wasting their time.

"People don't realize that robocallers actually pay for every single robocall that they make. And if we all answered every single robocall that we received and kept them on the phone for five or six seconds, we would bankrupt every robocaller in the world in one month,” he said.

The statute of limitations on the TCPA also goes back four years, giving consumers another weapon in fighting back against robocalls.

"Text messages are covered. In fact, one of our kit users recently settled a case, that never went to court, for $193,500 over text messages,” said Compton.

"It's not that we dislike anyone conducting a lawful business. But if their entire business model is predicated on violations of state and federal statute then there's no place for them, in my mind, in the marketplace,” he said.

Compton also started a forum for people who purchase his kit. It has hundreds of members from across the country who share their calls, experiences, and advice on how to fight back against specific robocalls, everything from “auto-warranty” calls to “student loan forgiveness” calls. It’s a forum that Steiner is a part of.

"We had one class action that we did as a group,” said Steiner. "There are some attorneys in the group that will take them [the calls] on a contingency basis."

Steiner is methodical with this organization. He also has a lot of patience. As long as you’re able to answer your phone and play along, he’s confident anyone can turn robocalls into cash.

"I would say part of it is figuring out who it is. But along the same lines, sometimes it's easy,” he said.

"The further down in the script you go, the more likely you'll figure out who they are or they'll be transferring you soon to somebody that you'll get more information from."

So if it’s not too difficult, why don’t more people hold robocallers accountable with this method?

Steiner believes it’s because they just don’t know about the TCPA or they simply don’t understand how simple the process is.

"One, I guess they don't know it's an option. They don't know it's easier than they make think it is,” he said. "The goal is to get your phone back and to stop it ringing."

Steiner says that the number of spam calls he and his family receive each week has dramatically decreased.

"I'm on a blacklist now,” he said. “When I get a call they'll try to transfer me and it won't transfer me because they'll know I'll go after them.”

It’s another reason Compton continues to educate others on his methods.

“The only effective way to make these callers stop calling your number is to make them cut you a check,” he said.

“You can block numbers. You can report them. You can be on the National Do Not Call Registry; none of those things seem to be that effective. But making them pay you really does seem to make them stop,” said Compton.