March 3, 2008
Media Contact: Sandi Copes
Phone: (850) 245-0150
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 tenth annual National Consumer Protection Week (March 2-8). 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 scammers and con artists.
“Con artists are often very clever in devising new schemes, and consumers have to be even smarter and ever on their guard,” said Attorney General McCollum. “National Consumer Protection Week gives us an excellent opportunity for a refresher course in protecting our pocketbooks and our families from rip-off artists.”
As part of the national event, McCollum announced the top categories of fraud complaints received by the Attorney General’s Office in 2007. Complaints about debt collection companies and credit reporting companies topped the list, followed closely by internet-related complaints. 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. Debt Collection, Collection Agencies and Credit Reporting Companies – 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. and may not contact consumers at work if they know the consumer’s employer disapproves. If concerned about their credit scores, consumers should remember the only official source for free annual credit reports is http://www.annualcreditreport.com. The website works in conjunction with Equifax, Experian and TransUnion, the three national credit reporting companies.
2. 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.
3. Travel – Complaints against travel agencies involved supposed “all-inclusive” vacation packages with hidden consumer fees or other fees and surcharges added to hotel bills and cruises. The Attorney General’s Office is currently investigating whether or not the cruise line industry is making the appropriate disclosures of surcharges and other fees.
4. Auto Dealers – Many complaints addressed the issue of used vehicles which were in worse condition than advertised by the dealer or “bait and switch” advertising used to lure consumers to dealerships. 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.
5. Builders/Contractors – To avoid being scammed by a rogue builder or contractor, ask to see a certified contractor license and always obtain at least three bids and references. Ask for a written contract with an accurate estimate. Do not pay in cash. A common problem is companies that required deposits or full payments and then failed to fulfill their contract obligations.
6. Foreign Scams, Lotteries and Advertisements – If you purchase one foreign lottery ticket, expect many more bogus offers for lottery or investment “opportunities.” Your name will be placed on lists that fraudulent telemarketers buy and sell. If you play a foreign lottery, whether through the mail or over the telephone, you are violating federal law. Also be wary of any offers promising you a surprise inheritance or asking for assistance in moving money from one country to another.
7. Mortgages/Loans – 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 broker’s credentials to ensure they are properly licensed and certified.
8. 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.
9. Crime – Consumers frequently contact the Attorney General’s Office to provide information about a crime. Complaints were also filed about crime in general or about how a particular crime was being addressed. Consumers are generally referred to the appropriate law enforcement or prosecutorial agency.
10. Timeshare Rentals and 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.
According to the Federal Trade Commission, well-informed consumers are often able to recognize a rip-off or scam. Fraudulent promotions seek to exploit people’s financial fantasies, needs and optimism. The Attorney General’s Office can 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. Consumers 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. Additional information about National Consumer Protection Week is available at http://www.consumer.gov/ncpw.