Serving Boone, Blowing Rock, Banner Elk, and other towns of the North Carolina High Country
Founded 05-05-05
February 8, 2007 issue
They’re Out To Get Your Money
How To Avoid the Scammer’s Clutches
Story by Kathleen McFadden
One thing North Carolina doesn’t lack is scam artists. Just this week, Watauga County Sheriff Len Hagaman issued an alert about bogus fundraising calls from people who identify themselves as deputies and say they’re raising money for local deputies. Those calls are fake, so don’t give the callers any money.
Also this week—and it just happens to be National Consumer Protection Week—Attorney General Roy Cooper issued his annual list of the top ten consumer complaints. In 2006, 20,257 consumers who were victims of frauds, scams, disputes or bad deals filed written complaints with the Consumer Protection Division of the North Carolina Attorney General’s Office. For the third year in a row, health care complaints topped the list. Complaints about telemarketers, credit and lending issues, and debt collectors and identity theft also continued to rank high. Complaints about furniture made the top ten for the first time since 2004 because of the number of home furnishings companies that closed up shop without filling orders.
It’s not that North Carolinians are particularly gullible. According to a survey by the Federal Trade Commission, nearly 25 million Americans—11.2 percent of the adult population—are the victims of consumer fraud each year. Such a high scam success rate comes from the increasing sophistication of perpetrators, the boon of the Internet and the targeting of offers to appeal to people’s financial fantasies, needs and general optimism.
Cooper offered the following tips to help consumers avoid scams and bad deals:
• If an offer sounds too good to be true, it probably is.
• Say no to high-pressure sales pitches. Always read contracts carefully and never sign a document that you don’t understand or that has blanks to be filled in later.
• Be wary of unsolicited offers. NEVER give your Social Security number, credit card or bank account number or other personal information to anyone who calls or emails you.
• Use a credit card when paying for orders in advance. Using a credit card gives you some protection if your order doesn’t arrive.
• Do business with companies you know or are recommended to you. Check companies with the Better Business Bureau or Attorney General’s office before making major purchases.
The theme of National Consumer Protection Week in 2007 is Read Up and Reach Out: Be an Informed Consumer, encouraging people to take advantage of the wealth of information that can help them recognize a rip-off, smell a scam or find a fraud. Click to www.consumer.gov/ncpw and www.ncdoj.com for consumer resources, tools, tips and other useful information.
Top Ten Consumer Complaints of 2006
This week, North Carolina Attorney General Roy Cooper released the top ten list of consumer complaints for 2006, along with contact info for following up on specific types of complaints. Consumers who have experienced a problem with a business can file a complaint with Cooper’s Consumer Protection office by calling 1-877-5-NO-SCAM toll-free within North Carolina or downloading a complaint form from www.ncdoj.com. Once a consumer files a written complaint, the AG’s office can try to help resolve the situation. When the office identifies a pattern of illegal business practices, the AG may also take action to enforce the law on behalf of all consumers.
1. Health Care: In 2006, a total of 5,035 consumers filed complaints about health insurance, doctors, dentists, hospitals, pharmacies, opticians, nursing homes, health products and services. Consumers often have problems with medical billing practices or have trouble getting copies of their medical records. For help with health insurance issues such as grievances, appeals and external reviews, consumers can call Attorney General Roy Cooper’s Managed Care Patient Assistance Program at 919-733-MCPA or 866-867-MCPA (toll-free in NC), email MCPA@ncdoj.com, or click to www.nchealthconsumer.com.
2. Do Not Call/Telemarketing: Last year, 2,025 consumers filed complaints with the AG’s office about unwanted telemarketing calls and unsolicited faxes. Consumers complain about unwanted faxes offering vacation deals and investment tips. Among the types of telemarketing calls generating the most complaints are those pitching satellite television, debt consolidation, mortgage loans and business opportunities. Since the Do Not Call Registry began in 2004, nearly 4 million North Carolina numbers have been placed on the list. Consumers can continue to sign up for the registry by clicking to www.nocallsnc.com or calling 1-888-382-1222 from the number they wish to register. To report telemarketers breaking the law, consumers can call 1-877-5-NO-SCAM or click to www.nocallsnc.com to fill out a Do Not Call complaint form.
3. Lending/Credit: In 2006, 1,985 consumers complained about lenders and creditors. Complaints about credit vary greatly and include problems with mortgage lenders, banks, loan brokers, payday lenders, check cashing services, credit unions, refund anticipation loans, savings and loans and pawn brokers. Consumers’ complaints usually involve high interest rates, loan payment charges because of late or missed payments, adjustable rate mortgages, prepayment penalties and loan fees.
4. Debt Collection and Identity Theft: Last year, 1,599 consumers filed complaints about debt collectors or identity theft. Consumers often complain about threatening calls from debt collectors or how frequently they are contacted about a debt. In some cases, consumers get calls about debts that aren’t even theirs. Identity thieves are striking more and more consumers across the state, stealing personal financial information and using it to run up debts and commit fraud in someone else’s name. Some consumers don’t find out that their identity has been stolen and their credit ruined until the debt collectors start calling. For tips on how to protect yourself from identity theft or what to do if you may be a victim, click to www.noscamnc.gov.
5. Home Furnishings: In 2006, 1,342 consumers complained about furniture sales practices. The majority of complaints come from out-of-state consumers who placed orders with certain North Carolina retailers by telephone. Consumers often complain that they received the wrong item of furniture or a damaged or defective item, or never received their item at all. Many problems stem from companies closing shop without filling orders.
6. Motor Vehicles: The AG’s office received 1,282 complaints from consumers who had problems with car repair, towing and new and used car purchases. The most common complaints are pricing, improper diagnosis, unauthorized repairs, failure to honor warranties and slow repair jobs. Consumers also complain about harassment from towing companies, and the AG’s office receives numerous lemon law complaints from consumers who are dissatisfied with their new cars.
7. Telecommunications: Last year, 1,199 consumers complained about their telephone, pager or cell phone service, the majority reporting problems with their wireless telephone service. Other common complaints include slamming, when a consumer’s telephone carrier is changed without his/her consent, and cramming, when a company tries to sneak unauthorized charges onto a consumer’s phone bill.
8. Telemarketing Fraud: A total of 1,175 consumers filed complaints concerning telemarketing fraud last year. The Federal Trade Commission estimates that fraudulent telemarketers scam as much as $40 billion a year from unsuspecting U.S. consumers. Some of the most prevalent telemarketing schemes involve bogus international lottery tickets, advance fee loans, government grants, credit card or identity theft protection and phony prizes or sweepstakes.
9. Home Repair and Construction: A total of 853 consumers filed complaints about home construction and repair work that was never performed, contractors who abandoned the job after getting paid, shoddy work, missed deadlines and cost overruns. The AG’s office also hears about scam artists who target seniors, attempting to sucker homeowners into a series of unnecessary and expensive home repairs.
10. Internet Service and Sales: The AG’s office received 779 Internet-related complaints from consumers in 2006. In many cases, consumers were dissatisfied with their service or were surprised to see their long-distance telephone bills rise sharply because of Internet dial-up charges. The office also received complaints from consumers who ordered products via the web or participated in online auctions but never received their promised merchandise. Reports of counterfeit check scams involving online sales are also on the rise. Scammers respond to people who’ve posted items for sale on legitimate websites such as eBay and Craig’s List. The scammer claims to be interested in buying the item, sends a certified check for more than the purchase price and asks the seller to wire back the extra money. Consumers who fall for this scam cash the check and wire the funds from their bank account, only to find out later that the check was fake.