Watch Out For:
1. Marketplace Fraud
2. Telemarketing Fraud
3. Charitable Fraud
4. Home-Related Scams
5. Health Care Fraud
6. Financial/Investment Fraud
7. Family-Related Fraudulent Activities
Remember:
"Do not give your credit card or checking account number over the telephone. If you decide to make a donation, send a check made out to the full official name of the charity.
"Be aware of any charity telephone appeal that includes a chance to enter a sweepstakes, but requires a donation. Legitimate contests do not require a donation.
"Do not fall prey to high pressure appeals by making a hasty decision to give immediately.
"Do not be taken in by offers that attempt to avoid the U.S. mail by requiring a messenger or courier to deliver money or rewards for your exchange of payment.
"Be careful if you are promised a risk-free investment, since very few investments involve little risk.
Predatory Lending
Don’t let yourself be a victim of bad mortgage practices. If you are over 65 and own your own home, you are a prime target to be scammed out of your money in a mortgage transaction. Know the basic dos and don’ts to protect yourself and your well deserved, hard earned money!
Defining the Predator:
Predatory lenders have extremely aggressive marketing schemes, all designed to convince a customer that borrowing money from them will be a quick and easy way to pay medical bills, make needed repairs, or to refinance your home. What appears to be easy money is just a way to part you from hard earned savings.
Why You?
Many older people are facing high medical bills, diminishing savings and an unexpectedly higher cost of living, making them a target for unscrupulous mortgage lenders. Need creates a vulnerability.
Scary Signs and Safe Tips:
The first sign of the predatory lending company is that they approach you first. Sales tactics include the traveling salesman, phone calls, and mass mailings all promising incredible bargains and easy fixes for bad credit.
Tip: Stop before you agree to anything. How badly do you need to borrow money? And, can you easily afford to make payments on borrowed money? Don’t be rushed into anything. Check with the Better Business Bureau for a reliability report. It is your right to decide for yourself what company you should use. Legitimate companies will always welcome you to check them out. TAKE YOUR TIME – DON’T BE RUSHED!!
The second sign to look for is the promise of small monthly payments on a large loan. Those small monthly payments can lead to “balloon” payments, where you have to pay one huge payment later on in the loan. Bad lending companies never tell you about the ultimate cost of your loan.
Tip: If someone tells you that they take applications by phone or asks you to give them money up front and they’ll approve you for the loan the next day, don’t believe them. You may not be approved for the loan and BBB experience is that you won’t get the money back.
The third sign of a possible scam is pushing for agreements and a signature. If they don’t seem willing to give direct answers to your questions, push back for the answers you need!
Tip: Take the time to read everything on the contract. Have a friend or lawyer go over it. You have the right to know everything about the contract up front. Ask about the total costs, annual percentage rates, and length of time to pay back the money, and miscellaneous fees. Beware of blank spaces. Be alert, whatever you sign could be taken for a legal document. Think before you act! Tell the lender you want a copy of the loan agreement BEFORE YOU SIGN IT to run past your lawyer, children or another trusted advisor. Remember, the good guys encourage you to check them out. They have nothing to hide.
And you can change your mind! The Truth in Lending Act gives you three days from signing a contract to change your mind when your home is on the line.
Unfortunate With Your Fortune?
If you suspect a predatory lending company has scammed you, there are places to seek help and places to report bad companies too. Contact the Better Business Bureau, your state consumer affairs department, your Attorney General’s office, your state Banking Commission. There are people out there who are ready, willing and able to help.
Remember:
There are three signs of any scam –
1. Speed - You are rushed into signing papers. DON’T DO IT. No legitimate company will rush you
2. Secrecy - The person or company trying to get you to do the construction job or borrow the money wants you to keep the details quiet. “This is such a good deal, don’t tell my boss, he’ll kill me” is a sure-fire give away to a scam, and
3. Selectivity - The salesperson tells you that this “special offer” is being made only to senior citizens, or in your neighborhood, or for some other special group.
If you are being rushed into a decision, or told to keep it quiet, or told that you are part of a special group – DON’T SIGN THE PAPERS. STOP THE DEAL. SHOW THEM THE DOOR. YOU WILL NEVER REGRET IT!
Tips for smart borrowing:
Think before you sign. If you are uncomfortable, don’t do it!
Shop around for what works best for your financial situation and what you like.
Ask questions until you are satisfied with the answers.
Read every printed item placed before you. Be aware of fluctuating contracts.
Be alert for terms such as “next day approval”, “re-financing”, “settlement costs”, “broker’s fees”, “low interest rates” and “low annual percentage rates.”