Departments
Community Services
Consumer Protection
Consumer Protection: Advice from The Bucks County Consumer
Advocates
October 2007
Q. I recently received a pre-approved credit card from Citibank. The letter stated that if I wanted to activate it to call a specific number, and if I chose not to accept it, to call another number. I called that number and they asked me for personal information including my Social Security number. What really concerns me is the fact that I have opted out of pre-approved credit cards. I chose to opt out for life. My question is how did they get my information and why did they ignore the opt-out program? S.G.R., Newtown
A. Apparently Citibank has sent numerous cards out in the past two weeks. We have received several calls. One of the main concerns is the fact that they seem to have ignored the opt-out list. The credit bureaus are required to offer consumers a way to opt out of pre-approved credit offers. Consumers can call 888-567-8688 or go online to www.optoutprescreen.com to get on the list. A Social Security number is required information. The other concern with their offer is the fact that they send an actual credit card, not an application. The fact that a consumer cannot speak to a real person to express their concern or even decline the offer is another problem. We have requested an explanation from the company about your concerns and our issues. We have also notified the Federal Trade Commission who is in charge of enforcing the regulations of the opt-out program. The Federal Trade Commission (FTC) can be reached by calling 1-877-382-4357 or at www.ftc.gov. The credit card industry was scrutinized by Congress for some of their practices last year. Unfortunately no action came from it. We recommend that concerned consumers reach out to their local Congressmen and Senators and ask for legislation to reform the industry practices and standards. The consumer is always the first to suffer and the last to get any relief.
Q. My mother and father had pre-planned their funeral several years back. My mother wanted to change the type of coffin and choose a less expensive one. When we called about a refund, we were told that the funeral home could not give one at this time. I don’t understand why the funeral home could not return my mother’s $250.00. I’m also a little concerned about the idea of pre-paying for your own funeral. Can you shed some light? P.T., Furlong
A. The answer concerning the refund is that the money that your father and mother had paid for the pre-paid funerals had to be put into a fund by law, whether it was a “funeral fund” or some kind of CD that would be locked in for a specific amount of time, the latter being your mother’s case. The funeral director extracting funds from the CD would have penalized the CD for early withdrawal. The funeral director will refund the money as soon as the CD matures. Planning your own funeral allows you the time to find the best prices, make sensible decisions and discourages emotional overspending on elaborate arrangements that family members might be tempted to purchase in their bereavement. When making all your own arrangements it also takes the burden off your family. If you plan to arrange your own funeral, make sure to shop around and compare prices from at least two funeral homes. You have the right to supply your own casket or urn without the funeral home being able to charge you extra or deny that choice. Ask for a price list for the products and services. Find out which items are locked in and which ones are not. Discuss what happens to your money until it is time for it to be used. Insist on an irrevocable trust, which can only be taken by the funeral director with a copy of the death certificate. Laws regarding funerals and burials vary from state to state. It is important to know which goods or services the law requires you to purchase and which are optional. When you choose a funeral home, make sure the written agreement outlines everything you decided on. Make copies of this agreement and any other wishes you want and give them to someone who will follow this through for you when it is time. Leaving them in your will or a safety deposit box should not be the only place you file a copy. They may not be found until after the services are over and it is too late to make sure your wishes were followed. Please contact Bucks County Consumer Protection at 1-800-942-2669 for a free copy of the Funeral Guide.
Q. I recently received a letter in the mail that came from the Department of the Treasury. It starts out saying “Dear Friend”, and basically talks about identity theft and Social Security checks being stolen. Then it talks about direct deposit and explains that if I wish to enroll, I should call a toll free number or go online. It also had an envelope and application that I could fill out and mail to a processing center in Texas. I tried to call the Treasury and verify the information, but could not get through. I am a senior citizen and currently have my Social Security check mailed to my home. Can you verify the information and if it’s a scam, warn people about it? J.D.J., Danboro
A. Our office looked at all the information you sent. It took a few days to actually verify the letter that was signed by Anna Escobedo Cabral, the United States Treasurer. The letter is real and its contents are correct. The letter contained some surprising information, like 40% of Americans have been victims of identity theft and that some fifty-seven thousand Social Security checks were forged. The letter is really an appeal to folks to sign up for direct deposit through a processing center called Go Direct. Direct deposit is a great idea and very a safe way to make sure your checks arrive safely via electronic transfer. All the processing information was also correct. The Go Direct processing center is located in Dallas, Texas and can be contacted by telephone at 1-888-524-6347. They can enroll you over the phone or fill out the application and mail it to the center. Their website is www.GoDirect.org and they have a video from the United States Treasurer Anna Cabral that is basically the same format as your letter. Go Direct is for Social Security, Railroad Retirement Board or Civil retirement payments only. The positive for direct deposit in general is you never need to be home waiting for the mail to arrive, and there is no driving to the bank to cash your check. If you travel a lot it gives you reliable access to your money. Our office would recommend that you take advantage of this service and we absolutely applaud you for checking out the validity of this program. It is the very best way for folks to stay out of trouble. It is important to know who you are dealing with and where and why they want your personal or financial information.
Q. My husband and I are finally going to buy our first new car after many years of friends and family hand me down cars. We realize this is going to be a big step and we are really nervous. We want to be able to make the best informed decision. Can you give me some things to look out for? S.M., Morrisville
A. You are absolutely right when you say it is a big step. A new car is second only to a home as the most expensive purchase many consumers make. First think about what car model and options you want and how much you’re willing to spend. Do some research. You’ll be less likely to feel pressured into making a hasty or expensive decision at the showroom. Know exactly how much you can afford on the car and don’t allow a sales person to sell you a more expensive car. Search the internet and objective publications, such as Consumer Reports and The Car Book, for information about the features, performance, durability, and costs of the models which interest you. Take the time to shop around from dealer to dealer to get a competitive price. It’s best to conduct this shopping process by phone. If you try to do it in person, you’ll waste many hours and you’ll have difficulty persuading sales people that you are really serious about leaving and getting other dealers’ prices. If the dealers don’t want to work with you over the phone let them know that if they don’t bid, they have no chance for your business. Be businesslike and persistent. Wait to discuss any extra matters like used car trade-in, paint sealant, or any other add-ons until you have settled on the price of your new car.
If you plan on financing your car, be aware that the financing obtained by the dealer may not be the best deal you can get. Contact lenders directly. Shop around for the best deal, comparing the annual percentage rate and the length of the loan. Be careful when it comes to extended warranties. Many new cars are very reliable, so there are few service claims. Also many cars now carry long manufacturer warranties, so many service problems are covered by the warranty, leaving little to be covered by the extended service contract. Bucks County Consumer Protection has some very good brochures covering buying a car. Please call 1-800-942-2669 to get your free copy.
Fraud Alert!
Telemarketing Scams and Frauds
According to the National Consumer League’s National Fraud Information Center, nearly a third of all telemarketing fraud victims are age 60 or older. Studies by AARP show that older telemarketing fraud victims don’t realize that the voice on the phone could belong to someone who is trying to steal their money. . The FBI says that there are thousands of fraudulent telemarketing companies operating in the United States.
The first step is to remember that fraudulent telemarketers are hardened criminals who don’t care about the pain they cause when they steal someone’s life savings. Illegal telemarketing is a serious crime—punishable by heavy fines and long prison sentence. Hang up and report the fraud to law enforcement authorities. YOU can help catch the crooks and put them in jail—where they belong.
Recognize the "red flags" of fraud:
- A promise that you can win money, make money, or borrow money easily;
- A demand that you act immediately or else miss out on this great opportunity;
- A refusal to send you written information before you agree to buy or donate;
- An attempt to scare you into buying something;
- Insistence that you wire money or have a courier pick up your payment; and,
- A refusal to stop calling after you’ve asked not to be called again.
The common thread that runs through all telemarketing scams is the demand for payment upfront.
Remember that:
- It’s illegal for companies that operate contests or sweepstakes to ask you to pay to enter or claim your prize or even to suggest that your chances of winning will improve if you buy something;
- It’s illegal for telemarketers to ask for a fee upfront to help you get a loan if they guarantee or strongly imply that the loans will be made;
- There is no reason to give your credit card number or bank account number to a telemarketer unless you are actually making a payment with that account; and,
- If you have to pay first before getting detailed information about the offer, it’s probably a scam.
For more information or to report a scam in Bucks County-contact any one of the Task Force members:
Bucks County Crimes AGAINST OLDER Adults Task Force-
Fighting Abuse, Neglect, and Exploitation of Older Adults in Bucks County
www.crimesagainstolderadultsbucks.org
1-800-490-8505
Bucks County District Attorney’s Office Bucks County Area Agency on Aging
215-348-6344 215-348-0510
Bucks County Consumer Protection Network of Victim Assistance
215-348-6060 1-800-675-6900
Bucks County Register of Wills Bucks County Coroner
215-348-6265 215-348-3852
Department of Consumer Protection /
Weights
and Measures
Michael D. Bannon
Director
50 North Main Street
Doylestown, PA 18901
Phone: 215-348-7442
Fax: 215-348-4570
Canny Consumer Hotline 1-800-942-2669