Hello Everyone,
Evelyn here,
Below is an Consumer Alert from Attorney Genral, Bill McCollum.
----------
Date: February 05, 2007
An Attorney General Consumer Alert!
McCollum Recognizes National Consumer Protection Week
~ Attorney General encourages public awareness, warns of common scams ~
TALLAHASSEE, FL - Attorney General Bill McCollum today joined with
federal, state and local government agencies and national consumer
advocacy organizations to launch the ninth annual National Consumer
Protection Week (February 4-10). The awareness week will highlight
consumer education efforts across the nation and encourage everyone
involved to become better informed consumers to avoid falling prey to
schemers and con artists.
"An educated consumer is our best ammunition in the fight against
fraud," said General McCollum. "We encourage Floridians to stay
informed and to take an active role in protecting themselves, their
families and those they love."
As part of the national event, McCollum announced the top categories
of fraud complaints received by the Attorney Generals Office in 2006.
Complaints about internet-related issues topped the list, followed
closely by complaints against builders and contractors. McCollum urged
consumers to be aware of the current trends that may victimize
Floridians and to remain vigilant in their efforts to protect
themselves from the following scams:
1. Internet-related - Scams that emerged last year included an
increasing variety of check overpayment scams and phishing, a form of
identity theft. Never give out personal identification information to
a stranger over the internet, and be wary of anyone who writes a check
for more than the required amount and then asks to have the difference
wired back to them. Consumers also complained about online companies
that fail to deliver ordered merchandise.
2. Builders/Contractors - To avoid being scammed by a rogue builder or
contractor, ask to see a certified contractors license and always obtain
at least three bids and references. Ask for a written contract with an
accurate estimate. Do not pay in cash. One of the most common problems
last year was companies that required deposits or full payments and then
failed to fulfill their contract obligations.
3. Insurance - The vast majority of complaints in this area were related
to the increasing cost of homeowners insurance. Additionally, Floridians
complained about increases that occurred without documentation or written
notification. Consumers should also be wary of companies offering cheap
insurance packages with unrealistic terms.
4. Collection Agencies - Debt collectors are legally prohibited from
lying to consumers or threatening them to collect payments. They are
also prohibited from calling after 9:00 p.m.
5. Travel - Complaints against travel agencies involved supposed
"all-inclusive" vacation packages with hidden consumer fees. Beware of
a hard sales pitch or an offer that sounds too good to be true.
6. Timeshare Resale - Other travel-related complaints addressed timeshare
scams, which occur both at the time of the original purchase and at the
time of resale. To protect themselves sellers should consider reselling
their timeshare "by owner;" by placing an advertisement in a newsletter
or magazine read by potential timeshare buyers; or by listing the
timeshare with a licensed real estate broker in the area where the
resort is located.
7. Auto Dealers - Many complaints addressed the issue of used vehicles
which were in worse condition than advertised by the dealer. Other
complaints referenced contracts that included unclear or confusing
terms which consumers did not understand, including monthly payments,
fees or interest rates higher than expected.
8. Real Estate - Unfortunately, many consumers bought homes last year
only to realize that the appraisal value had been artificially increased
or, in some cases, completely fabricated. There were also a wide variety
of complaints against developers who failed to fulfill their contracts.
9. Subscriptions - In 2006 consumers often received magazines they did
not order or subscribe to and then were billed for these undesired items.
Additionally, many consumers who renewed their magazine subscription were
unaware that they were paying a 3rd party magazine billing service.
Always be cautious if you receive magazines or other products for free.
Carefully review the terms of subscription and billing.
10. Mortgages - Last year, many consumer complaints focused on mortgage
companies that were withholding much needed insurance money until
consumers met several (often unattainable) hurdles. Additionally, some
mortgage companies failed to honor preset payoff amounts or charged the
consumer prepayment penalty fees that were not part of the original
contract signed by the consumer. Be certain that all of the terms of any
loan are fully disclosed and research the brokers credentials to ensure
they are properly licensed and certified.
According to the Federal Trade Commission, well-informed consumers are
often able to recognize a rip-off or fraud scheme. Fraudulent promotions
seek to exploit peoples financial fantasies, needs and optimism. Partner
organizations provide practical tips for consumers on how to make
well-informed purchase decisions, avoid scams, protect their personal
information and file a complaint if they feel they are the victims of
fraud. Additional information about National Consumer Protection Week is
available at http://www.consumer.gov/ncpw. Those who wish to file a
complaint may do so by calling the Attorney General’s fraud hotline at
1-866-9-NO-SCAM (1-866-966-7226) or by filing a complaint online at
http://myfloridalegal.com.
----------
Evelyn Out.
