FDIC reminds consumers to be aware of advance fee loan scams that prey on individuals who desperately need money quickly. The scam involves false promises to arrange for a loan in return for fees paid upfront by the applicant. Scam artists may design Websites with online loan applications or fraudulently use logos and letterhead of legitimate companies to make the offer look legitimate.
Applicants are guaranteed approval as soon as the required fees are paid upfront usually by way of wire transfer money to an individual overseas.
Warning signs of advance fee loans include:
Loan approval is "guaranteed." Lenders don't guarantee loans before analyzing the application.
The loan applicant is required to pay upfront fees. Loan fees are normally paid after the loan is approved.
The lender or loan processor is located outside of the United States.
Payment of fees is requested to be sent by retail wire transfers.
Victims should report crimes to the Internet Crime Complaint Center at http://www.ic3.gov/. More information about fraudulent advance loan fee scams can be found at http://www.ftc.gov/bcp/conline/pubs/tmarkg/loans.shtm.
SCAM Alert: FDN Distributors Co.
A company called FDN Distributors Co. is distributing a letter with a fraudulent cashier’s check for a large dollar amount to consumers. The checks distributed have all had the same check number: 059210. The checks are written to different individuals for different dollar amounts ranging from $196,000 to $280,000.
The routing and transit number on the checks is the legitimate routing and transit number for P&S Credit Union in Salt Lake City, Utah.
The credit union has been receiving calls from unknowing consumers from across the country trying to cash the fraudulent checks or asking questions about why they received a check. (So far, calls have been received from consumers in Wisconsin, Washington and Connecticut.)
The credit union is aware that its routing and transit number has fraudulently been obtained. So far, P&S Credit Union has not lost any money. There is concern that the letter may direct consumers to send money for a fee before they can cash the check. Or, that consumers may release the routing and transit number from their own account allowing a perpetrator access to their funds.
The precise scam is not understood at this time. The FBI and Secret Service have both been contacted and are researching where the checks are originating
Thursday, June 26, 2008
Wednesday, May 28, 2008
Money Scams
Nigerian Money Offer Scams
Nigerian money offer scams are among the most common types of fraud arriving by email. ... line are called "Nigerian Money Offer Scams" for the country where.
Auto Warranty Firms Launch Sleazy Scam
It uses postcards, letters, and phone calls to sell outrageously priced extended warranties. The mailings look like an important notice from your car dealer or automaker. There is always an eye-catching warning on the front of the card, such as: 'Final Notice: Expiring Auto Warranty.
Nigerian money offer scams are among the most common types of fraud arriving by email. ... line are called "Nigerian Money Offer Scams" for the country where.
Auto Warranty Firms Launch Sleazy Scam
It uses postcards, letters, and phone calls to sell outrageously priced extended warranties. The mailings look like an important notice from your car dealer or automaker. There is always an eye-catching warning on the front of the card, such as: 'Final Notice: Expiring Auto Warranty.
ACE Issues Warning About Fake GED Testing Services Individuals who wish to locate their nearest testing center should use the GED center locator on the ACE web site.
Beware of Online Job Classifieds Used to Steal Your Identity FINRA describes the latest variation of the identity theft tale. Stock traders, posing as employees of a made-up Latvian brokerage firm, appear to have stolen personal information from individuals who thought they were applying for a job through the popular classifieds website, Craigslist.
Advance-Fee Scams Target Non-U.S. Investors Using Fake Regulator Web Sites and False Broker Identities The Financial Industry Regulatory Authority warns non-U.S. investors that scammers are using fraud -- including setting up phony 'regulator' web sites and fake identities -- to separate you from your money.
Fair Debt Collection
If you use credit cards, owe money on a personal loan, or are paying on a home mortgage, you are a "debtor." If you fall behind in repaying your creditors, or an error is made on your accounts, you may be contacted by a "debt collector."
You should know that in either situation, the Fair Debt Collection Practices Act requires that debt collectors treat you fairly and prohibits certain methods of debt collection. Of course, the law does not erase any legitimate debt you owe.
This brochure answers commonly asked questions about your rights under the Fair Debt Collection Practices Act.
What debts are covered?
Personal, family, and household debts are covered under the Act. This includes money owed for the purchase of an automobile, for medical care, or for charge accounts.
Who is a debt collector?
A debt collector is any person who regularly collects debts owed to others. This includes attorneys who collect debts on a regular basis.
How may a debt collector contact you?
A collector may contact you in person, by mail, telephone, telegram, or fax. However, a debt collector may not contact you at inconvenient times or places, such as before 8 a.m. or after 9 p.m., unless you agree. A debt collector also may not contact you at work if the collector knows that your employer disapproves of such contacts.
Can you stop a debt collector from contacting you?
You can stop a debt collector from contacting you by writing a letter to the collector telling them to stop. Once the collector receives your letter, they may not contact you again except to say there will be no further contact or to notify you that the debt collector or the creditor intends to take some specific action. Please note, however, that sending such a letter to a collector does not make the debt go away if you actually owe it. You could still be sued by the debt collector or your original creditor.
May a debt collector contact anyone else about your debt?
If you have an attorney, the debt collector must contact the attorney, rather than you. If you do not have an attorney, a collector may contact other people, but only to find out where you live, what your phone number is, and where you work. Collectors usually are prohibited from contacting such third parties more than once. In most cases, the collector may not tell anyone other than you and your attorney that you owe money.
What must the debt collector tell you about the debt?
Within five days after you are first contacted, the collector must send you a written notice telling you the amount of money you owe; the name of the creditor to whom you owe the money; and what action to take if you believe you do not owe the money.
May a debt collector continue to contact you if you believe you do not owe money?
A collector may not contact you if, within 30 days after you receive the written notice, you send the collection agency a letter stating you do not owe money. However, a collector can renew collection activities if you are sent proof of the debt, such as a copy of a bill for the amount owed.
What types of debt collection practices are prohibited?Harassment. Debt collectors may not harass, oppress, or abuse you or any third parties they contact.
For example, debt collectors may not:
use threats of violence or harm;
publish a list of consumers who refuse to pay their debts (except to a credit bureau);
use obscene or profane language; or repeatedly use the telephone to annoy someone.
False statements. Debt collectors may not use any false or misleading statements when collecting a debt. For example, debt collectors may not:
falsely imply that they are attorneys or government representatives;
falsely imply that you have committed a crime;
falsely represent that they operate or work for a credit bureau;
misrepresent the amount of your debt;
indicate that papers being sent to you are legal forms when they are not; or
indicate that papers being sent to you are not legal forms when they are.
Debt collectors also may not state that:
you will be arrested if you do not pay your debt;
they will seize, garnish, attach, or sell your property or wages, unless the collection agency or creditor intends to do so, and it is legal to do so; or
actions, such as a lawsuit, will be taken against you, when such action legally may not be taken, or when they do not intend to take such action.
Debt collectors may not:
give false credit information about you to anyone, including a credit bureau;
send you anything that looks like an official document from a court or government agency when it is not; or
use a false name.
Unfair practices. Debt collectors may not engage in unfair practices when they try to collect a debt. For example, collectors may not:
collect any amount greater than your debt, unless your state law permits such a charge;
deposit a post-dated check prematurely;
use deception to make you accept collect calls or pay for telegrams;
take or threaten to take your property unless this can be done legally; or
contact you by postcard.
What control do you have over payment of debts?
If you owe more than one debt, any payment you make must be applied to the debt you indicate. A debt collector may not apply a payment to any debt you believe you do not owe.
What can you do if you believe a debt collector violated the law?
You have the right to sue a collector in a state or federal court within one year from the date the law was violated. If you win, you may recover money for the damages you suffered plus an additional amount up to $1,000. Court costs and attorney' s fees also can be recovered. A group of people also may sue a debt collector and recover money for damages up to $500,000, or one percent of the collector' s net worth, whichever is less.
Where can you report a debt collector for an alleged violation?
Report any problems you have with a debt collector to your state Attorney General' s office and the Federal Trade Commission. Many states have their own debt collection laws, and your Attorney General' s office can help you determine your rights.
The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.
You should know that in either situation, the Fair Debt Collection Practices Act requires that debt collectors treat you fairly and prohibits certain methods of debt collection. Of course, the law does not erase any legitimate debt you owe.
This brochure answers commonly asked questions about your rights under the Fair Debt Collection Practices Act.
What debts are covered?
Personal, family, and household debts are covered under the Act. This includes money owed for the purchase of an automobile, for medical care, or for charge accounts.
Who is a debt collector?
A debt collector is any person who regularly collects debts owed to others. This includes attorneys who collect debts on a regular basis.
How may a debt collector contact you?
A collector may contact you in person, by mail, telephone, telegram, or fax. However, a debt collector may not contact you at inconvenient times or places, such as before 8 a.m. or after 9 p.m., unless you agree. A debt collector also may not contact you at work if the collector knows that your employer disapproves of such contacts.
Can you stop a debt collector from contacting you?
You can stop a debt collector from contacting you by writing a letter to the collector telling them to stop. Once the collector receives your letter, they may not contact you again except to say there will be no further contact or to notify you that the debt collector or the creditor intends to take some specific action. Please note, however, that sending such a letter to a collector does not make the debt go away if you actually owe it. You could still be sued by the debt collector or your original creditor.
May a debt collector contact anyone else about your debt?
If you have an attorney, the debt collector must contact the attorney, rather than you. If you do not have an attorney, a collector may contact other people, but only to find out where you live, what your phone number is, and where you work. Collectors usually are prohibited from contacting such third parties more than once. In most cases, the collector may not tell anyone other than you and your attorney that you owe money.
What must the debt collector tell you about the debt?
Within five days after you are first contacted, the collector must send you a written notice telling you the amount of money you owe; the name of the creditor to whom you owe the money; and what action to take if you believe you do not owe the money.
May a debt collector continue to contact you if you believe you do not owe money?
A collector may not contact you if, within 30 days after you receive the written notice, you send the collection agency a letter stating you do not owe money. However, a collector can renew collection activities if you are sent proof of the debt, such as a copy of a bill for the amount owed.
What types of debt collection practices are prohibited?Harassment. Debt collectors may not harass, oppress, or abuse you or any third parties they contact.
For example, debt collectors may not:
use threats of violence or harm;
publish a list of consumers who refuse to pay their debts (except to a credit bureau);
use obscene or profane language; or repeatedly use the telephone to annoy someone.
False statements. Debt collectors may not use any false or misleading statements when collecting a debt. For example, debt collectors may not:
falsely imply that they are attorneys or government representatives;
falsely imply that you have committed a crime;
falsely represent that they operate or work for a credit bureau;
misrepresent the amount of your debt;
indicate that papers being sent to you are legal forms when they are not; or
indicate that papers being sent to you are not legal forms when they are.
Debt collectors also may not state that:
you will be arrested if you do not pay your debt;
they will seize, garnish, attach, or sell your property or wages, unless the collection agency or creditor intends to do so, and it is legal to do so; or
actions, such as a lawsuit, will be taken against you, when such action legally may not be taken, or when they do not intend to take such action.
Debt collectors may not:
give false credit information about you to anyone, including a credit bureau;
send you anything that looks like an official document from a court or government agency when it is not; or
use a false name.
Unfair practices. Debt collectors may not engage in unfair practices when they try to collect a debt. For example, collectors may not:
collect any amount greater than your debt, unless your state law permits such a charge;
deposit a post-dated check prematurely;
use deception to make you accept collect calls or pay for telegrams;
take or threaten to take your property unless this can be done legally; or
contact you by postcard.
What control do you have over payment of debts?
If you owe more than one debt, any payment you make must be applied to the debt you indicate. A debt collector may not apply a payment to any debt you believe you do not owe.
What can you do if you believe a debt collector violated the law?
You have the right to sue a collector in a state or federal court within one year from the date the law was violated. If you win, you may recover money for the damages you suffered plus an additional amount up to $1,000. Court costs and attorney' s fees also can be recovered. A group of people also may sue a debt collector and recover money for damages up to $500,000, or one percent of the collector' s net worth, whichever is less.
Where can you report a debt collector for an alleged violation?
Report any problems you have with a debt collector to your state Attorney General' s office and the Federal Trade Commission. Many states have their own debt collection laws, and your Attorney General' s office can help you determine your rights.
The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.
The Truth about Grants!!!!
FREE MONEY - FREE CASH GRANTS - NEVER REPAY CASH GRANTS FOR PERSONAL NEEDS, MEDICAL BILLS, EDUCATION, BUSINESS, DEBT CONSOLIDATION, AND MORE"
Hopefully, all of this sounds too good to be true and as you know when something sounds too good to be true, it usually is. Solicitations like these have been appearing in e-mails recently as well as some classified ads. These ads claim that "foundations can be a better source for finance than banks" and "anyone can get an interest free cash grant". The e-mails we have seen encourage consumers to send an application fee of $20 to $50, with the promise that their financial needs and requirements will be matched with the most suitable private foundations or they may even promise to provide a list of available grants. If you decide to respond to these ads be aware that your name and information may never reach reputable foundations. Generally obtaining a grant is a complicated process requiring documentation and research. Although there may exist private foundations whose requirements are based on an individual's personal preference, the vast majority of grant making foundations require that applicants for funds meet very specific guidelines and that the funds be used for specific projects that the foundation may wish to support.
One such company, Cash Free Grants, Inc. was named in a Consent Decree with the United States of America. The company located in East Windsor, New Jersey had engaged in mail order promotions which stated that for $39 or $49 Cash Free Grants would match a consumer's financial need with a foundation that gave grants to consumers. Their advertisements said "they knew where the money was" and would be happy to share that information.
The Better Business Bureau of Metropolitan New York was named in the Consent Decree to administer a refund program to any consumer who had been misled by this company. If you wish to apply for a refund send your name, current address, proof of purchase and the amount of purchase to the Better Business Bureau/New York, Attention Department CFG…Post Office Box 767, New York, NY 10010-0767. All requests for refunds must be received no later than August 30, 2002 to be eligible for consideration.
I would like to offer the following advice to anyone considering responding to and paying advance fee money to any company offering any of the above:
1. Watch out for phrases like "free grant money". Grants do not have to be repaid; thus there is no need to use the word "free".
2. Organizations do not usually give out grants for personal debt consolidation or to pay for other personal needs. Grants are usually given to serve a social good, training under employed youth, preserving a bit of history, etc.
3. Check out any company you plan to do business with through the BBB and also check with a Regional or State Economic Development Office to see if they know of grant programs for which you might qualify. These are of course free.
4. Visit your public library and ask the librarian to help you find reference books describing foundations and the criteria used in awarding grants.
5. Be wary if you are asked to provide upfront money to an unknown company before any services are provided.
6. If you are having financial problems there are local non-profit credit counseling services who may be able to assist you at no charge. Remember the trigger concept of an advance fee - upfront money - is usually reason to be suspicious so thoroughly check out any offer.
NOTE: Volunteer arbitrators needed for the BBB. Attorneys or experienced arbitrators may qualify to become a volunteer arbitrator to resolve automotive and other consumer/business disputes for the BBB. Two training sessions will be held in Chicago…one on September 17th and 18th and the other September 19th and the 20th. A $100 registration fee is required. For additional information regarding these 1-1/2 day sessions call Roxanne Calibraro on 312-245-2513 or e-mail rcalibraro@chicago.bbb.org.
Links: Catalog of Federal Domestic Assistance
http://12.46.245.173/cfda/cfda.html
THE FINANCIAL MANAGEMENT SERVICE
http://fms.treas.gov/index.html
Foundation Centerhttp://foundationcenter.org/findfunders/fundingsources/gtio.html
Hopefully, all of this sounds too good to be true and as you know when something sounds too good to be true, it usually is. Solicitations like these have been appearing in e-mails recently as well as some classified ads. These ads claim that "foundations can be a better source for finance than banks" and "anyone can get an interest free cash grant". The e-mails we have seen encourage consumers to send an application fee of $20 to $50, with the promise that their financial needs and requirements will be matched with the most suitable private foundations or they may even promise to provide a list of available grants. If you decide to respond to these ads be aware that your name and information may never reach reputable foundations. Generally obtaining a grant is a complicated process requiring documentation and research. Although there may exist private foundations whose requirements are based on an individual's personal preference, the vast majority of grant making foundations require that applicants for funds meet very specific guidelines and that the funds be used for specific projects that the foundation may wish to support.
One such company, Cash Free Grants, Inc. was named in a Consent Decree with the United States of America. The company located in East Windsor, New Jersey had engaged in mail order promotions which stated that for $39 or $49 Cash Free Grants would match a consumer's financial need with a foundation that gave grants to consumers. Their advertisements said "they knew where the money was" and would be happy to share that information.
The Better Business Bureau of Metropolitan New York was named in the Consent Decree to administer a refund program to any consumer who had been misled by this company. If you wish to apply for a refund send your name, current address, proof of purchase and the amount of purchase to the Better Business Bureau/New York, Attention Department CFG…Post Office Box 767, New York, NY 10010-0767. All requests for refunds must be received no later than August 30, 2002 to be eligible for consideration.
I would like to offer the following advice to anyone considering responding to and paying advance fee money to any company offering any of the above:
1. Watch out for phrases like "free grant money". Grants do not have to be repaid; thus there is no need to use the word "free".
2. Organizations do not usually give out grants for personal debt consolidation or to pay for other personal needs. Grants are usually given to serve a social good, training under employed youth, preserving a bit of history, etc.
3. Check out any company you plan to do business with through the BBB and also check with a Regional or State Economic Development Office to see if they know of grant programs for which you might qualify. These are of course free.
4. Visit your public library and ask the librarian to help you find reference books describing foundations and the criteria used in awarding grants.
5. Be wary if you are asked to provide upfront money to an unknown company before any services are provided.
6. If you are having financial problems there are local non-profit credit counseling services who may be able to assist you at no charge. Remember the trigger concept of an advance fee - upfront money - is usually reason to be suspicious so thoroughly check out any offer.
NOTE: Volunteer arbitrators needed for the BBB. Attorneys or experienced arbitrators may qualify to become a volunteer arbitrator to resolve automotive and other consumer/business disputes for the BBB. Two training sessions will be held in Chicago…one on September 17th and 18th and the other September 19th and the 20th. A $100 registration fee is required. For additional information regarding these 1-1/2 day sessions call Roxanne Calibraro on 312-245-2513 or e-mail rcalibraro@chicago.bbb.org.
Links: Catalog of Federal Domestic Assistance
http://12.46.245.173/cfda/cfda.html
THE FINANCIAL MANAGEMENT SERVICE
http://fms.treas.gov/index.html
Foundation Centerhttp://foundationcenter.org/findfunders/fundingsources/gtio.html
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