FTC: Beware of Tax and Rebate Check Scams
March 10, 2008 by Bindy
Filed under Finance/Credit, Scams & Frauds
The Federal Trade Commission is cautioning consumers looking forward to rebate checks from the government that they may be targets of scammers out to steal their identity. The agency has issued an alert to help consumers avoid this situation.
The schemes work like this: consumers get a call or an e-mail claiming to be from the IRS, the Social Security Administration, or some other government agency, and claiming to need some bit of personal information to process the rebate check. Consumers may be asked to provide their social security number, bank account number, or another piece of personal information that a skillful crook can use to commit identity theft. E-mails often include a link for a consumer to click: that link may take the consumer to an official-looking – but phony – website that is simply phishing for the consumer’s information. Or, the link may take the consumer to a legitimate site but install spyware or some other form of malware on the way.
Sphere: Related ContentFTC Sues Two Mortgage Foreclosure “Rescue” Operations
March 3, 2008 by Bindy
Filed under Finance/Credit, Scams & Frauds
As part of the Federal Trade Commission’s intensified efforts to protect consumers from mortgage foreclosure rescue scams, the agency has filed two lawsuits charging six individuals and their businesses with falsely claiming that they will stop foreclosure. The FTC will seek to bar them from further violations and make them forfeit their ill-gotten gains.
“Consumers who are at risk of losing their homes are in a vulnerable position,” said Lydia B. Parnes, Director of the FTC’s Bureau of Consumer Protection. “Companies that take money from these consumers with false promises to save their homes from foreclosure will face swift action from the FTC and its law enforcement partners.”
In the first case, Florida-based Mortgage Foreclosure Solutions, Inc., Debra Behrens, and Michael Siani are charged with falsely representing that they will stop foreclosure in all or virtually all instances, in violation of the FTC Act, which prohibits unfair and deceptive acts or practices. They allegedly claim that they can stop foreclosure regardless of consumers’ hardships or payment histories, stating in one such claim, “We are so confident of our abilities to provide you with a solution in stopping your foreclosure that we guarantee our services in writing to you.” Their promotions have appeared on Internet Web sites and blogs, including www.mortgageforeclosuresolutions.biz, www.mortgageforeclosuresolutions.com, www.mortgageforeclosuresolutions.info, www.mortgageforeclosuresolutions.net, www.mortgageforeclosuresolutions.org, and www.mortgageforeclosuresolutions.us.
Sphere: Related ContentFTC Charges Mortgage Foreclosure “Rescuers” with Deceiving Homeowners
March 3, 2008 by Bindy
Filed under Finance/Credit, Scams & Frauds
In an ongoing effort to crack down on businesses that prey upon homeowners facing foreclosure, the Federal Trade Commission has charged six businesses and three individuals with violating the Home Ownership and Equity Protection Act (HOEPA), the FTC Act, and the Truth in Lending Act (TILA) by enticing homeowners into high-cost, short-term loans secured by an additional mortgage on their homes. The FTC will seek to bar the defendants from further violations, make them forfeit their ill-gotten gains, and stop collection and foreclosure actions or efforts to seize or transfer properties.
The defendants are Safe Harbour Foundation of Florida, Inc., Silverstone Lending, LLC, Silverstone Financial, LLC, Southeast Advertising, Inc., Keystone Financial, LLC, MT25 LLC, Peter J. Porcelli II, Bonnie A. Harris, and Christopher Tomasulo.
Sphere: Related ContentDebt Reduction Companies Settle with FTC
February 18, 2008 by Bindy
Filed under Finance/Credit
Two debt reduction companies and their principals have agreed to settle Federal Trade Commission charges alleging that they violated federal law by falsely claiming that they could reduce consumers’ credit card interest rates or the amount of their credit card debt. Terms of the settlements, in which the defendants have not admitted liability, are defined in stipulated orders entered by the United States District Court for the District of Colorado on January 31, 2008.
According to a complaint filed by the FTC in March 2007, the defendants sold debt reduction services through Web sites and television and radio advertisements with claims such as “Reduce Debt Now” and “Eliminate Harassing Calls.” When consumers called a toll-free number, the complaint alleged, they were encouraged to enroll in a “debt consolidation program” if their unsecured consumer debt was up to one month overdue, or a “debt settlement program” if overdue longer.
Sphere: Related ContentCongress to Probe Credit Card Industry and Practices
December 4, 2007 by Bill
Filed under Finance/Credit
Looking to enact new legislation next year in an effort to reform credit card company practices such as raising credit card interest rates to as high as 30% when a consumer's credit score declines, Congress is renewing it's inspection of the credit card industry. The Federal Reserve also is getting involved and plans to require credit card issuers to give consumers a 45 day notice prior to raising credit card interest rates.
Sphere: Related ContentTaxpayers warned repeatedly by IRS of email scams in 2007
November 30, 2007 by Bill
Filed under Finance/Credit, Scams & Frauds
The IRS has put out a series of communications in 2007 warning consumers of a variety of email scams involving the IRS. The different scams to watch out for include:
Sphere: Related ContentFTC Stops Prepaid Stored-Value Card Sellers From Improper Debiting
August 15, 2007 by Bill
Filed under Finance/Credit, General, Scams & Frauds
At the request of the Federal Trade Commission, a federal judge has temporarily halted an operation marketing Visa- and MasterCard-branded stored-value cards from making unauthorized debits from consumers’ bank accounts.
According to a complaint filed by the FTC, the defendants market bank-issued, Visa- and MasterCard-branded stored-value (prepaid) cards under a variety of names through Web sites and pop-up and e-mail advertisements that direct consumers to Web sites for the individual cards. These include Acclaim Visa, Impact Visa, Sterling Visa, VIP Advantage Visa, Vue Visa, Elite Plus MasterCard, Impact MasterCard, Secure Deposit MasterCard, VIP MasterCard, and Vue MasterCard. The defendants also market unrelated short-term loans on Web sites such as www.SuperAutoSource.com, www.SuperCashSource.com, and www.FastCashUSA.com.
Sphere: Related ContentFederal and State Agencies Announces Pilot Project to Improve Supervision of Subprime Mortgage Lenders
July 23, 2007 by Bill
Filed under Finance/Credit
Three federal agencies and two associations of state regulators will cooperate in an innovative pilot project to conduct targeted consumer-protection compliance reviews of selected non-depository lenders with significant subprime mortgage operations.
Sphere: Related ContentFTC Issues Clarification to Consumers Who Received a Refund Check from the USA Immigration Services Redress Program
July 23, 2007 by Bill
Filed under Finance/Credit
Commission Clarification: On July 9, 2007, the Federal Trade Commission began issuing refund checks to certain customers of USA Immigration Services. The letter accompanying those checks stated that consumers received a check because they paid the defendants for “green card” lottery assistance services. The letter should have stated that consumers received a check because, sometime between January 2001 and October 2003 they: 1) paid the defendants for “green card” lottery assistance services; 2) paid the defendants for passport, international drivers license, or other travel-related documents and services; or 3) paid the defendants for immigration forms, citizenship applications, temporary visas, permanent visas, affidavits of support, or other residency-related documents and services.
Sphere: Related ContentAvoiding Mortgage Payment Shock: FTC Offers New Publication for Homeowners
July 2, 2007 by Bill
Filed under Finance/Credit
A new publication from the FTC has information that could help consumers save their homes and recognize and avoid foreclosure scams. The publication, “Mortgage Payments Sending You Reeling? Here’s What To Do,” explains different kinds of mortgages, what to do if you’re behind in your payments, how to avoid default and foreclosure, and how to avoid predatory scams.
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