COMMON CONSUMER SCAMS

 It is our belief that an informed consumer is a safe consumer.  Knowing even a little about consumer laws and the ways in which unscrupulous businesses violate them can go a long way to helping you protect yourself.

TELEMARKETING FRAUD

You know the routine: you sit down to dinner and the phone rings. You answer it. There is a pleasant voice trying to sell you something.  Here we go again…..

Consumers lose more than $40 billion a year to telemarketing fraud. That’s why the Federal Trade Commission (FTC) encourages you to be skeptical when you hear a phone solicitation and to be aware of a new law–the Telemarketing Sales Rule–that can help you protect yourself from abusive and deceptive telemarketers.  To see a summary of the Telemarketing Sales Rule, or learn more about telemarketing scams, go to FTC.GOV

BAIT AND SWITCH

This form of misleading advertising has been around for years. It usually works this way: a merchant will get you into the store by advertising a very low-price item. This is called “the bait.”  When you get into the store, you realize that the advertised item is a very poor-quality product, so you naturally hesitate to buy it.  Another technique is where the salesperson comes right out and tells you that the reason it is on sale is because it is not very good. The salesperson will then try to get you to buy a higher-quality version of the same thing, which (naturally) is more expensive. That is the “switch.”  This deceptive practice has been around so long for one incredibly good reason: it works.  Do not let it work on you!

REQUIRING A SPOUSE TO COSIGN A LOAN.

The Equal Credit Opportunity Act limits a lender’s ability to require a spouse to co-sign a loan and requires lenders to promptly notify the consumer of any denial of credit. Violations lead to actual damages, punitive damages, and attorney fees.               

PRIZE NOTIFICATIONS. 

If you are notified by phone or by mail that you have won something and all you must do is call the number provided, be careful. Notices of this type are used to get your interest so you will call the number. Then they give you a sales pitch for an over-priced or poor-quality product.  Sometimes you may not ever even get the product or their “prize.” Many companies that solicit business in this manner ask for your credit card number. Do not do it!  Your name, address, and credit card information is enough for a thief to charge your credit card account for thousands of dollars. To learn more, go to FTC.GOV and click on “Consumer Protection” and then “Telemarketing”.  

MECHANIC’S LIEN

Consumer Protection investigators have seen an increase in calls from consumers who have found liens filed against their newly purchased or remodeled home. Here is how it can happen to you.

In most cases, consumers hire and pay one general contractor who then buys materials from local businesses and hires subcontractors. Even if you have paid the general contractor, he may not have paid his suppliers or subcontractors. You are then liable for the unpaid bills for materials or work. The subcontractors can file liens against your home until they are paid. Any individual who furnishes skills, labor, services or materials for the improvement or development of property has authority to file a lien on that property for the value of what was provided. In most cases, a consumer cannot legally transfer property until all liens have been paid.

You can avoid having a lien filed against your property by obtaining a lien waiver. When you hire someone to build a home, an addition or even a deck, don’t pay the contractor or anyone else until you receive a waiver from all businesses or each subcontractor who has provided a service in the completion of the project.

VACATION SCAMS

Typical scam vacation spots are Las Vegas, Reno, and the Caribbean. If it sounds too good to be true, it usually is. Firms make these offers either directly to consumers, through telephone or mail solicitations, or to businesses that use vacation certificates as part of their own sales promotions. Most consumers do not get what they expect.

These certificates usually cost from $100 to $500. If you buy one, you would typically be entitled to several days and nights at the vacation spot. According to the conditions on the certificate, you must contact the promoter–not the hotel–to make your reservation and probably make a deposit. You might have to make another deposit when you confirm the reservation.

 In some cases, vacation certificate promoters get rooms from the hotel only if the hotel is not booked up. If it is already booked, consumers who want to redeem their certificates may not get their first choice of hotel. You may find promised “first class accommodations” are not all that classy or that the “vacation site” may be some distance from the main attractions of the resort.

In fact, some promoters sell vacation certificates without reserving any rooms. They issue counterfeit certificates that are not honored by the hotel, restaurant or casino indicated.

When in doubt, check with the Consumer Protection office of the Attorney General’s office in the state where the promoter is located to see if they have a record of complaints.

To learn more about these, and other common consumer scams log onto  www.ftc.gov/ftc/consumer.htm and click on “Consumer Protection”.

Auto Repairs

The Motor Vehicle Repair Rule provides certain rights to consumers who need auto repairs. These rights, which are required to be posted in plain view at all auto repair facilities in Ohio, include the following:

To receive a written estimate prior to the commencement of work.

To not have the cost of repairs exceed 10% of the estimate without your authorization.

Consumers also have many other rights when it comes to motor vehicle repairs, including return of replaced parts, no misrepresentation of the need for repairs or repair work actually done, just to name a few.  You can read the law by clicking here. [LINK TO: the Ohio Motor Vehicle Repair Rule popup window that appears on the Lemon Law website at this page: https://www.ohiolemonlaw.com/resources3.html under category 4 Laws]

When you have been ripped off by a repair facility, you don’t have to put up with it.  In many cases you have the right to recover 3 times your actual damages, or even $200 when you have no damages at all, plus attorney fees if you have to hire an attorney. If complaining on your own doesn’t work, then contact us for help. [“contact us” should link to an email to us]

For more information call 937-432-9500.

How to Complain

What can you do when you feel as if your rights as a consumer have been violated and you can’t afford an attorney?

1. Make a Phone Call.  Have all your paperwork in front of you and make notes of your call, especially the first and last name of the person you spoke with, along with the date and time.
2. Write a Complaint Letter.  Include all the facts and be sure to keep a copy of everything you send.  Give them a deadline date to respond.  Consider sending it return receipt. 
3. Complain to the Attorney General.  You must file a complaint form (either printed or on-line) with the Attorney General’s consumer protection staff.  Call 1.800.282.0515 or visit their website.
4. Complain to the Better Business Bureau.  Local offices are listed in the phone book or visit their website.
5. Sue the party in Small Claims Court or Hire an Attorney to handle the matter for you.
6. Small Claims Court can handle most civil actions where the claims is for money only and does not exceed $3,000.  Such claims might include damage to property caused by movers, cleaners and individuals, repair problems, undelivered goods and defective products.  Certain disputes such as those involving libel, slander and punitive damages are NOT within the jurisdiction of Small Claims Court.

FCRA, FAIR CREDIT REPORTING ACT LINK:

 http://www.ftc.gov/os/statutes/fcra.htm

FDCPA, FAIR DEBT COLLECTION PRACTICES ACT LINK:

http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm