Complaint resolution service publishes case studies, recall information and consumer news.

The U.S. Food and Drug Administration is warning consumers about a scam to purchase drugs from an international location.  The callers claim to be FDA “special agents” and apparently target  consumers who use mail order pharmacies or similar services.

After an order is placed, the agency says the consumer receives a call several days later demanding money for a “fine” because of the order.  Consumers are threatened during the call and even told they can be jailed.

If you have been contacted or know someone who has, please call the FDA toll-free at (800) 521-5783.

Posted under Health, Privacy

The federal treasure trove from the FCIC — the folks you might hear on public service announcements as shipping from Pueblo, Colorado — have an amazing variety of books and information for no or little cost. One we especially like is a packet published with help from the Securities and Exchange Commission (SEC): Fraud Protection for Seniors.

The package includes helpful pamphlets about scams that sound too good to be and even tips on protecting your retirement savings. There are even hints on how to qualify marketing offers to ensure they are appropriate for you.

Ordering this free package of publications is easy:

• Send your name and address to Fraud Protection for Seniors, Pueblo, Colorado 81009
• Order Protecting Seniors From Fraud online
• Call toll-free 1 (888) 8 PUEBLO or  (888) 878-3256, weekdays 8 a.m. to 8 p.m. Eastern Time and ask for the Fraud Protection for Seniors package.

Posted under Finance

This scam must take the cake.

Iowa Attorney General Tom Miller is warning consumers that some rocket scientists are calling Iowans and reporting they are from the power company.

What do you think happens next in mid-July?  That’s right.  The poor consumer is told their electric service will be cut off if payment is made by phone.

That would be a terrific service for late paying customers if the story were true.  Unfortunately, the scam is simply the latest wrinkle in the “Scare Them ‘Til They Give You Money” contests.

“Our utilities never operate like that,” Miller said. “Don’t be buffaloed into giving out your credit card account number, bank account, Social Security number, or other personal information. This scam appears to be hitting all over Iowa.”

Miller has also asked consumers to immediately contest the charges if they have given this information to a company and said that his office and utility companies want to know when the call comes, even if a consumer did not divulge any information.

Anyone receiving a call should contact their utility company and the state’s Iowa consumer regulatory authorities at 888-777-4590 (281-5926 if calling from Des Moines). You can also send an email to the Iowa Attorney’s General office.

Posted under Privacy

Consumer goods giant SC Johnson repeated its consumer warning that a letter sent to consumers is not from the company.

The first warning was issued two weeks ago by the maker of Windex, Pledge, Glade and more cleaning products. The letter is from a “Consumer Rewards Program” allegedly being administered by MBT Financial Services.  Recipients are sent a fake check with a false signature from the company’s founder.  The company is now reporting a second letter is making the rounds, this one from an entity called “Domino Financial Trust”.

As is often the case with email, this paper phishing scam asks consumers to supply banking information.  The company has asked consumers to contact their local law enforcement office.  Calling US postal inspectors isn’t a bad idea either.  Save the envelope and all inserts, and please don’t send anyone your banking information unless you already have a financial arrangement with them.

Posted under Privacy

Consumers who gave the federal government an interest-free loan for up to a year during 2007-2008 have undoubtedly filed for and may have even received their refund check by now.

Two words: Stop that!

There is absolutely no need for any consumer to receive a substantial income tax refund. Please consult with a tax professional if you are one of those people who consistently receive a refund. Many consumers we have talked with tell us that they view these refunds as “savings” and “found money” that they get every spring for big bills.

Nonsense.

That money is yours, and you received no interest or other compensation. Even if you receive a $1,200 refund, that means that you could have brought home an extra $100 each month during 2007. If you’re carrying credit card or other debt and also receiving a refund, you’ve lost twice — the government took more of your money without paying interest, and you paid interest on money you had borrowed.

Find an accountant or tax advisor.

For those of you who are waiting to file during the last 200 hours of the regular season, the Internal Revenue Service issued its “Dirty Dozen” list of scams targeting taxpayers. As befits any IRS document, there are too many words, so let’s boil it down fast so you can get back to finding those receipts:

1. Phishing - This is the scam where you get email that looks like it’s from one organization, but it really isn’t. The solution is simple, especially with financial and other personal email. Open your browser and type the organization’s address in, along with any extensions you found in the email.

2. Stimulus Payment Questions - You may have heard that you’re due a check in May or June if you paid federal income tax in 2007. This so-called “stimulus” payment is automatic. You don’t have to do anything, and you should run away from anyone who tells you they need information to process yours.

3. Frivolous Arguments - Very simply, you have to pay federal income taxes. If you don’t, your tax professional will explain why. Verify that person’s explanation with the IRS.

4. Fuel Tax Credit - Best left for professionals or the IRS Help Line. If you don’t understand the intricacies, don’t try at home with a calculator with keys sticky from Saturday morning pancake syrup.

5. Hiding Money Offshore - If you’re in that financial demographic and reading this blog, have we got a deal for you. Write us. We’ll help you invest wisely.

6. Avoiding Roth IRA Limits - Does the deal sound too good to be true? It probably is, especially if a financial consultant just told you that they can avoid the federal IRA limits.

7. Sending A “Corrected” W2 or 1099 - Yes, you’re going to get caught. No, the people who work at the IRS are not that dumb. If you have a W2 that claims $X and you try lowering your taxes by submitting a “corrected” form, you will indeed face a form of corrections.

8. Abatement Requests - If you don’t know, don’t ask. If you’re told you should, ask a second professional. (Are you sensing a theme?)

9. Tax Preparer Scams - There are good and bad people in every professional. A nice office or brand name from a national chain is meaningless. Check with your local or state government agencies before entrusting your financial future to a stranger.

10. Forming “Shell” Companies - Not the gas station, but a bogus corporate entity that lets you shift income around when it is really personally taxable. Yep, they know this one too.

11. Misuse of Trusts - There is a very legitimate financial need to use trusts in estate and financial planning. Be sure your financial planner and tax advisor are on the same page and understand. Don’t unintentionally make a mistake by trusting someone who didn’t know the full picture.

12. Charitable Donations - The IRS specifically singled out the notion of taxpayers disguising private school tuition payments as charitable donations. That’s pretty slick and pretty stupid. Here is the deal on charity: read the rules. If you’re not preparing your taxes, don’t overstate the condition, original cost or value of items you’ve donated. Get a detailed receipt. Take pictures. Do what you need to do to prove your donation.

We’re not tax or financial professionals. This is merely a synthesis of a news item the Internal Revenue Service shared with taxpayers. If you have questions or concerns, contact your local IRS office or talk with a tax professional.

Posted under Finance

Washington State Attorney General Rob McKenna has announced a settlement with three California-based businesses that resolves allegations they installed software that took control of a consumer’s computer by launching aggressive and persistent pop-ups that demanded payment for a movie download service. The software was installed after users signed up for a seemingly anonymous free trial for the service.

“Under this settlement, Movieland.com and its associated companies agree to cease offering anonymous free trials to Washington consumers for their movie download service,” said Attorney General Rob McKenna “Additionally, the defendants must receive express consent from Washington consumers before installing any billing software on the user’s computer, disclose whether the software will cause any pop-ups and clearly state all important contract terms in any advertisement.”

The state filed its original lawsuit last summer following an investigation by the Attorney General’s Consumer Protection High-Tech Unit. The suit accused the following of violating Washington’s Computer Spyware and Consumer Protection acts: Digital Enterprises of West Hills, doing business as Movieland.com; AccessMedia Networks of Los Angeles; Innovative Networks of Woodland Hills; and Alchemy Communications of Los Angeles.

Allegations against Alchemy were subsequently dismissed and the state reached a stipulated agreement with the remaining defendants that was filed today in King County Superior Court. Two company officials, Digital Enterprises’ Easton A. Herd, and Alchemy’s Andrew M. Garroni, are also parties to the settlement, which does not include a finding or admission of wrongdoing.

The defendants agreed to pay a total of $50,000 to resolve the allegations. They also agreed to provisions that limit their business practices.

According to the state’s complaint, the defendants promoted a movie download service through Web sites including movieland.com, moviepass.tv and popcorn.net that offered consumers a free three-day trial. Billing software was then downloaded onto the personal computers of consumers who accepted the offer.

After the trial period, defendants remotely activated the billing software, causing a popup window to appear that indicated the trial period had expired. Consumers who clicked on a “Continue” link on the pop-up were then shown a 40-second video that recurred hourly and told them that they were legally obligated to purchase a subscription. A statement on the company’s Web site also indicated that failure to pay “may result in an escalation of collection proceedings that could have an adverse effect on your credit status.”

The Attorney General’s Office is offering a refund program for consumers who believe they have been subject to the defendants’ practices. Washington residents who believe they are eligible for a refund should file a complaint with the Attorney General’s Consumer Protection Division online at www.atg.wa.gov or call 1-800-551-4636 (number only available in-state) to request a complaint form.

Posted under Privacy

Attorney General Rob McKenna has warned consumers to be aware of a new identity theft scam in which a caller claims to be your pharmacist and asks for a list of your medications and a credit card number. He also cautioned consumers about a recent proliferation of foreign lottery and counterfeit check scams.

Seniors in Wenatchee, as well as Southern California and Chicago, have recently reported receiving cold calls along these lines. In the Wenatchee cases, the caller(s) had a foreign accent and the recipients were unable to trace the calls by dialing *69.

“Never provide any personal or financial information to an unknown caller,” McKenna said. “Cons want details about your finances so that they can steal from your account or cause other harm. Legitimate companies that you do business with already have your information and will not call to ask for it. If you questions about whether a call is legitimate, hang up and contact your pharmacist or doctor directly.”

McKenna said the Attorney General’s Office continues to receive an increasing number of calls from consumers inquiring about foreign lotteries.

“The Attorney General’s Office has received numerous calls from consumers who have received notices in the mail indicating they are the big winner of a foreign lottery,” McKenna said. “A check is included, which the recipients are instructed to cash to help cover so-called processing fees. Consumers are then asked to wire money in order to receive the rest of their winnings.

“The checks are an attractive lure, but worthless,” McKenna added. “If you cash one, it will eventually bounce and your bank will withdraw the money from your account. These pitches are always scams.”

To win a legitimate lottery, you must purchase a ticket. It’s also important to know that can’t legally play a foreign lottery in the United States.

Posted under Health, Privacy

After another victim of the infamous “British Lottery” scam contacted Consumer Help Web, the advocacy company swung into action and began attempting to make contact via presumed letter drops in Canada.

At the heart of this issue was a customer who was not paid funds reportedly promised to her by this “organization”.

Consumer Help Web is well acquainted with this particular series of activities and has contacted regulatory authorities to provide assistance in their quest for regulatory or potentially criminal action.

Our customer reports that she was the victim of a bait and switch scam in which monies were reportedly paid to her and she took action before the check was returned for non-sufficient funds. Unfortunately, this is one of the most common schemes known to investigators and law enforcement officials throughout North America.

If you receive notice that you’ve won something or just need to send funds to another address once funds are deposited in your account, don’t do it! The scam is that the funds are deposited, but have not cleared. They typically are returned as having insufficient funds, but by then, the victim has already sent the actual money to the criminals.

Posted under Complaints

An operation that sold worthless prep materials for post office jobs that didn’t exist, will give up $105,000 to settle Federal Trade Commission charges that the scam violated federal law.
The FTC charged that the operation misrepresented an affiliation with the Postal Service, the availability of postal jobs, and that getting a passing score on a postal entrance exam guarantees applicants a job. The FTC also alleged that using their test preparation materials would not help anyone to pass the postal exam, contrary to the defendants’ claims, and actually contained false and misleading information.

The FTC alleged that, since at least January 2004, the defendants ran classified ads across the nation in employment guides and newspapers. The FTC alleged the ads led consumers to believe that the defendants were hiring for postal jobs and were connected with, or endorsed by, the USPS. One ad stated:

According to the FTC, the telemarketers assured consumers there were jobs available in the caller’s geographic area and that passing the exam required for postal employment would assure them a postal job. Consumers were charged a “registration fee” of $108.80.

In fact, applicants for many entry-level postal jobs are required to take a postal examination. But the tests are usually offered only every few years in any particular district. Also, there are no job placement guarantees based on score. If applicants pass the test by scoring at least 70 out of 100, they are placed on a register, ranked by their score. When a position becomes open, the local post office looks to the applicable register for that geographic location and calls the top three applicants. The score is only one of many criteria taken into account for employment. Information on postal jobs is available at the consumer’s local post office, and applicants generally receive a free packet of information about required exams. The exams test general aptitude, something that cannot necessarily be increased by studying. More information is available at the Postal Service Web site, www.usps.com.

The settlement brings a permanent end to misrepresentations by the defendants that:

* they are connected with or endorsed by the Postal Service;
* postal jobs are currently available in consumers’ geographic areas where defendants’ advertisements appear;
* consumers would receive study materials which would allow them to pass the postal employment exam; and
* a passing score on the postal exam will guarantee consumers a job with the Postal Service.

The order also prohibits the defendants from misrepresenting any material fact about products they are selling and enters a $2,093,183 suspended judgment against the defendants – the total amount of consumer injury. Based on financial documents filed by the defendants, they will pay $105,000 because they are unable to pay more. If the court finds that they misrepresented their financial status, then they will be liable for the full amount.

The defendants, Jeffrey Charles Lord and his company, Job Resources, Inc., are based in Tennessee.

Posted under Customer Service

The Internal Revenue Service released legal guidance today outlining the protections in place for the new private debt collection program.

The guidance, contained in Announcement 2006-63, describes the limited role private collection agencies (PCAs) may play in collecting back taxes and the legal restrictions and procedures in place to safeguard taxpayer privacy and taxpayer rights.

The IRS will assign delinquent federal tax accounts to three PCAs beginning Sept. 7. An initial 12,500 taxpayers who owe back taxes will be in this group, with the number reaching approximately 40,000 by year’s end.

“We’re going to implement this program very carefully so we have a good program on sound footing,” IRS Commissioner Mark W. Everson said. “We are working hard to protect taxpayer privacy and taxpayer rights.”

In addition to describing the rules that will guide PCA conduct and protect taxpayer rights, Announcement 2006- 63 also describes the type of contacts a PCA may have with a taxpayer and the procedures in place for the IRS to assist in training and monitoring PCAs.

To assist the IRS in its collection of back taxes, the 2004 American Jobs Creation Act authorizes the IRS to hire private firms to collect federal tax debts. This provision was carefully crafted by Congress and includes several limitations to ensure the private firms will be subject to the same stringent taxpayer protection and privacy rules that IRS employees work under. In addition, private firms cannot subcontract the work.

The IRS has also developed its own guidelines for the private firms, including background checks on all private firm personnel associated with the project as well as a mandatory, IRS-directed training program for company personnel.

Private firms are not authorized to take enforcement actions such as filing liens, or making levies or property seizures. In addition, private firms are not authorized to work on technical issues such as offers in compromise, bankruptcies, hardship issues or litigation. Rather, the IRS will assign to the private firms cases in which the taxpayer has not disputed the liability. The private firms will contact taxpayers to make payment arrangements.

“Redirecting relatively simple cases to private firms will permit the IRS to continue to focus its existing collection and enforcement personnel on more complex tax issues,” Everson said.

Posted under Finance