Consumer Fraud: Prevention Tips
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Preventing Consumer Fraud Tips
- Always take your time when making a financial decision. Don't be afraid to say no.
- Never give your credit card number out over the phone unless you initiate the call.
- Beware of give-aways and free prizes. There may be a catch.
- Offers that sound too good to be true usually are.
- Report consumer fraud to Attorney General McDonnell and Local Police.
Personal Safety Tips
- Have a buddy system with your neighbors and join a Neighborhood Watch Program
- Stay alert and attuned to your surroundings.
- Whenever possible, travel with a friend instead of going alone.
- Lock up when you're at home.
- Don't open your door to strangers.
- If you or someone you know becomes a victim of crime, call the Police immediately.
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Federal Telemarketing Rules
Rules are in effect nationwide to combat telemarketing fraud. The rules empower individuals to prevent telemarketing calls and telemarketing fraud. Report violations to the Virginia Attorney General's Office.
- It is illegal for a telemarketer to call you if you have asked not to be called.
- Calling times are restricted to hours between 8 a.m. and 9 p.m.
- Telemarketers must tell you it's a sales call, the name of the seller, and what they are selling before they make their pitch. If it's a prize promotion, they must tell you that no purchase or payment is necessary to enter or win.
- It's illegal for telemarketers to misrepresent any information; any facts about their goods or services; earnings potential, profitability, risk, or liquidity of an investment; or the nature of a prize in a prize-promotion scheme.
- Before you pay, telemarketers must tell you the total cost of the goods and any restrictions on getting or using them; or that a sale is final or non-refundable. In a prize promotion, they must tell you the odds of winning, that no purchase or payment is necessary to win, and any restrictions or conditions of receiving the prize.
- It's illegal for a telemarketer to withdraw money from your checking account without your express, verifiable authorization.
- Telemarketers cannot lie to get you to pay, no matter what method of payment you use.
- You do not have to pay for credit repair, recovery room, or advance-fee loan/credit services until these services have been delivered.
- It's illegal to help deceptive telemarketers if you know--or consciously avoid knowing--that they are breaking the law.
- Your state law enforcement officers now have the power to prosecute fraudulent telemarketers who operate across state lines.
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Credit Reports and Practices
If you're looking for a way out of your credit problems, don't believe promises like these! There's a brisk business among so-called "credit repair" companies that charge from $50 to more than $1,000 to "fix" your credit report. In many cases, these outfits take your money and do little or nothing to improve your credit report. Often, they just vanish.
There are no quick or easy cures for a poor credit history. If a credit repair company promises you it can clean up your credit report, remember the following:
- your credit history is maintained by private companies called credit bureaus that collect information reported to them by banks, mortgage companies, department stores, and other creditors;
- these credit bureaus can legally report accurate negative credit information for seven years and bankruptcy information for ten years;
- accurate items that are within the seven (or ten) year reporting period cannot be erased from your credit record by companies advertising "credit repair" services;
- if you have a poor credit history--even if your past problems were due to illness or unemployment--time is the only thing that will heal your credit report;
- the only information in your credit report that can be changed are items that are actually wrong or beyond the seven (or ten) year reporting period;
- if there are genuine mistakes or outdated items in your report, you can fix them yourself.
Review your credit report for any mistakes or information more than seven years old (ten years for bankruptcy). If you don't understand something, ask. The credit bureau is required by law to explain your report to you. If there are mistakes, you can take the following actions:
- Notify the credit bureau of the problem and provide as much information as you can about what is wrong with the report. The bureau must--at no charge to you--reinvestigate the disputed information. It then must correct any mistake or delete any information it cannot verify. At your request, the bureau must send a corrected copy of your report to anyone who received the incorrect version within the past six months.
- Sometimes, it is also helpful to contact the creditor directly to ensure that the creditor's records are correct.
- If these steps don't resolve things, you can file a written statement of up to 100 words with the credit bureau explaining your side of the story. This explanation will be included in your credit report.
For additional information or to report problems with credit repair companies contact:
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'Gold' and 'Platinum' Card Scams
Beware of promotions for "gold" or "platinum" cards that promise to get you credit and build your credit rating even if your credit history is poor. Although they may sound like general purpose credit cards, some of these "gold" or "platinum" cards only permit you to buy merchandise from special catalogs and will not help you obtain credit from other sources. You may also find that ads for these cards direct you to call "900" or "976" exchanges for more information. Remember that charges for these calls add up fast!
Checking Account Scams
One of the latest scams making the round typically begins with a postcard advertising easy credit approval or low credit card interest rates. When consumers call, they are asked for their checking account number, supposedly as part of a "verification process." This number can be magnetically encoded on a draft, which is forwarded to consumer's bank. Sometimes banks pay out hundreds of dollars from the consumer's account, not realizing that the consumer never approved the withdrawal. For your protection, never give out your checking account number or credit card number unless you are certain that you are dealing with a reputable company.
