Consumer issues

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Contents

Dealing with Public Officials

What do I need to know about dealing with public officials?

  • Ask for identification from officials who stop at your home.
  • Some con artists portray themselves as officials to obtain access into your home. This is a common ploy for burglars and individuals selling expensive and unnecessary repairs.
  • Others represent themselves as brokers who say that they can obtain FEMA Funds. FEMA does not charge an application fee.
  • Verify credentials of people offering low-interest government loans to confirm that they are affiliated with such

agencies. Call the agency, if necessary.

Charitable Donations

What precautions should I take when considering making a charitable donation?

If you're thinking about the best ways to provide help to those affected by the Hurricane, the Federal Trade Commission (FTC), the nation's consumer protection agency, has these tips to help you give wisely:

  • Donate to recognized charities you have given to before. And be wary of charities with names that sound like familiar, or nationally known organizations. Some phony charities use names that sound or look like those of respected, legitimate organizations.
  • Give directly to the charity, not the solicitors for the charity. That's because solicitors take a portion of the proceeds to cover their costs, which leaves less for victim assistance.
  • Do not give out personal or financial information - including your Social Security number or credit card and bank account numbers - to anyone who solicits a contribution from you. Scam artists use this information to commit fraud against you.
  • Check out any charities before you donate. Contact the Better Business Bureau's Wise Giving Alliance at www.give.org.
  • Don't give or send cash. For security and tax record purposes, contribute by check or credit card. Write the official name of the charity on your check. You can contribute safely online through national charities like www.redcross.org/donate.
  • Ask for identification if you're approached in person. Many states require paid fund-raisers to identify themselves as such and to name the charity for which they're soliciting.
  • Ask for written information about the charity, including name, address and telephone number. A legitimate charity or fund-raiser will give you information about the charity's mission, how your donation will be used and proof that your contribution is tax deductible.
  • Check out the charity's financial information. For many organizations, this information can be found online at www.guidestar.org or at GuideStar, 427 Scotland Street, Williamsburg, VA 23185; 757-229-4631.
  • Call the charity. Find out if the organization is aware of the solicitation and has authorized the use of its name. If not, you may be dealing with a scam artist.
  • Know the difference between "tax exempt" and "tax deductible." Tax exempt means the organization doesn't have to pay taxes. Tax deductible means you can deduct your contribution on your federal income tax return. Even if an organization is tax exempt, your contribution may not be tax deductible. If a tax deduction is important to you, ask for a receipt showing the amount of your contribution and stating that it is tax deductible.
  • Ask how your donation will be distributed. How much will go to the program you want to support (as opposed to other programs of the nonprofit), and how much will cover the charity's administrative and telemarketing costs?
  • Refuse high pressure appeals. Legitimate fund-raisers won't push you to give on the spot.
  • Be wary of charities offering to send a courier or overnight delivery service to collect your donation immediately.
  • Consider the costs. When buying merchandise or tickets for special events, or when receiving "free" goods in exchange for giving, remember that these items cost money and generally are paid for out of your contribution. Although this can be an effective fund-raising tool, less money may be available for the charity.
  • Be wary of guaranteed sweepstakes winnings in exchange for a contribution. According to law, you never have to donate anything to be eligible to win.

Where should I lodge a complaint if I believe that an organizations has misrepresented its charitable intentions or otherwise has operated improperly?

  • If you believe an organization may not be operating for charitable purposes, is making misleading solicitations or is ignoring requests to be placed on a "do not call" list, contact your state Attorney General, your local consumer protection office or the Federal Trade Commission.
  • 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.
  • Link: http://www.ftc.gov/bcp/conline/pubs/tmarkg/charity.htm

Phone and Internet Scams

How can I protect myself against phone-scams?

  • Dishonest telemarketers call flood victims offering "flood-safety kits" for hundreds of dollars.
  • Do not give your credit card or checking account number to a telemarketer you don't know.
  • Ask for details in writing and be wary when the term "government approved" is used.
  • Do not fall for prize promotions where you have to buy something to get a prize.

What about internet scams?

One should also be aware of the possibility that many websites have popped up in the wake of Hurricane Katrina. In some cases, these sites may advertise for what are in fact phony charities or otherwise are unscrupulous attempts to defraud people affected by or concerned with Hurricane Katrina.

Home, Car and Other Repairs

If I need to have repairs done to my home, what steps can I take to protect myself against scams and what steps should I take with regard to obtaining a fair price and ensuring that the job is done with sufficient quality and what types of illegal and unscrupulous practices should I be on the lookout for?

  • Get at least three estimates (bids). Be certain each contractor bids on exactly the same work. If one contractor bids on more work than others, make a note of it. In any event, all bids should be itemized.
  • Know who you are dealing with. Find out the contractor's address and verify it. Ask for and check references (previous customers, bank references).Inspect work done for others when possible. Check identification of workers.
  • To determine whether/not a contractor is indeed legitimate, you may call the Mississippi State Board of Contractors at 1-800-880-6161, or visit their website at www.msboc.com.
  • A reputable contractor can usually charge building materials and does not normally require a large down payment. Where one is required, it should not exceed 10%-25% of the total price.
  • Be specific. Have samples, model numbers, pictures or anything else that will show the contractor exactly what you want. If you don't specify the quality of materials in the contract, you are leaving it up to the contractor to decide what material will be use.
  • Be certain the materials you have selected are what you want. Changing your mind in the middle of a construction project is costly. If you do change your mind, be prepared to pay (extra).
  • No one is required to guarantee his work or product. If you want to guarantee (warranty), make sure it is written in the contract and you understand it. If you are dissatisfied with any part of the work speak-up before the job is completed.
  • With foundation work, inspect the work before it is covered. If possible, get an independent, qualified individual to check any work of this type before it's covered and paid for.
  • If your basement has been flooded it may or may not need to be re-waterproofed.
  • If possible, use fans to help dry out the basement and wait until the next heavy rain to see if there is a leak before contracting a waterproofing contractor. Do some research and get several opinions as to how the problem can best be handled before you take any action.
  • Ask the waterproofing contractor for a written analysis of the problem, details on how they intend to correct it and a breakdown of all costs before you sign a contract.
  • Review the terms of the written guarantee before agreeing to have the work done and note which conditions are and are not covered. Remember, only those basement areas that are waterproof treated will be covered.
  • Under most circumstances, the pressure pumping method of waterproofing is usually not effective and should not be used unless you have a verified engineer's analysis stating it is the most effective method to correct the problem.
  • Accept no verbal agreements. Any changes in the contract should be written out and initialed by both parties.
  • Contracts should specify a beginning and completion date, exact description of job to be done, total cost of job, exact schedule for payment and warranty or guarantee which can be expected. (If contract is for an hourly rate or on a a "cost plus" basis, get an estimate of total cost.)
  • Do not pay the contractor or repairman the full amount due until the job has been completed satisfactorily.
  • Keep a signed readable copy of the contract in safe place.
  • NOTE: Often on large projects payment is based on portions of completed work. Such as: 25% of total payment is due when 25% of the work has been satisfactorily completed. or more information call 1-800-281-4418 (toll free in MS) or 601-359-4230.
  • To determine whether/not a contractor is indeed legitimate, you may call the Mississippi State Board of Contractors at 1-800-880-6161, or visit their website at www.msboc.com.
  • Link: http://www.ago.state.ms.us/pressreleases/hurricanetips.pdf
  • Contact:
    Attorney General's Consumer Protection Division
    P. O. Box 22947
    Jackson, Mississippi 39225-2947
    (601) 359-4230 or 1-800-281-4418 (toll-free in Mississippi only)

How can I protect against auto repair scams?

  • If your car was submerged or standing in a foot or more of water for more than hour, have the car checked out by a car dealer or a repair shop.
  • Even if the car runs, there may be hidden damage that could pose serious problems at some later date.
  • Be sure to get detailed written estimates and keep copies of all receipts and invoices.
  • If you are in the market to buy a used vehicle, inspect it carefully. Look at hidden parts or crevices to check for mud or silt, an indication the car has been water damaged.

Identity Theft

How can I minimize my chances for becoming a victim to identity theft when I am most vulnerable?

  • Since "scam" telemarketers may contact you, be very hesitant before giving out personal information over the phone to any telemarketer you are unfamiliar with or do not know.
  • Always ask for details in writing about the service and be wary when the term "government approved" is used by the telemarketer.
  • In the near future, order your credit report from the three major credit bureaus, Equifax Information Services, LLC, Experian, ("TRW"), and TransUnion, and review the report to make sure that no suspicious activity has occurred.
  • Also ask the three major credit bureaus to remove your name from all marketing lists that they control.
  • Contact your local telephone service and ask that your name, address and phone number be removed from the telephone book, reverse directories and city directories.
  • Change your driver's license number so that it is not your social security number. This can be done through the offices of Mississippi Department of Public Safety, Drivers License Bureau.

If I realize that my identity has been stolen, how do I respond?

  • You must immediately contact your local police force or sheriff's department and inform them of your situation.
  • Next, inform the creditors of your situation and point out all accounts that you feel have been affected.
  • Alert the fraud departments of all major credit bureaus of your situation.
  • File a report with the Federal Trade Commission at www.consumer.gov/idtheft or call at 1-877-IDTHEFT (438-4338)
  • Complete the identity theft affidavit located at the following web address: www.ago.state.ms.us/divisions/consumer/idtheft.pdf and mail to Office of the Attorney General, Consumer Protection Division, P.O. Box 22947, Jackson, MS 39225-2947.
  • An additional step may be to consult with a private attorney about your situation.

Important Links:

Hurricane Katrina and Current/Future Credit Card Debt

How are victims of Hurricane Katrina identified and classified by banks, credit card companies, and other financial institutions?

Financial institutions are identifying individuals affected by Hurricane Katrina by the zip code of their primary residence. The Federal Emergency Management Agency has teamed up with the United States Postal Service to identify areas hardest hit by the hurricane and flag them by their zip codes. This way, it is easy for financial institutions to determine, and verify if their clients have been affected by the hurricane. This system of identifying affected areas by zip code has been the standard used for modern natural disasters that occur in the U.S. today, and has not differed significantly for Hurricane Katrina. To find out whether or not a zip code has been declared a disaster area, log onto: www.fema.org.

Have there been an increase in Credit Card scams or fraud as a result of Hurricane Katrina?

As in most disaster situations, there tend to be an increase in fraud and scams, however, credit card companies are aware that this activity increases with disaster situations, and use counteractive measures to detect and eliminate increased fraudulent activity. For instance, American Express’ fraud detection division, labeled their “Security Team” has been closely monitoring the accounts of Hurricane Katrina victims for any possible unusual activity. By doing so, they have been able to prevent their card holders from paying for others’ illegal activities. For more information on American Express security measure, contact their division for Communication and Community Affairs at: (954) 503-3091.

Credit Card Company Contact Information

What are credit card companies and banks doing to help alleviate the current and future debts of their clients?

Overall, the major credit card companies are using similar measures to help customers manage their debt both in the immediate aftermath, and to some extent long term. Most companies are offering some type of temporary payment suspension for between 30 and 90days for their affected customers to help manage current debt. And to help mitigate their customers’ future debt, most companies have begun waiving certain service charges and fees. Specific company offers are listed below, based in large part from information gathered through The Financial Services Roundtable. Additional information can be found at their website: www.fsround.org. For more information on what your credit card company can do for you, please contact the companies directly.

All financial institutions, credit card companies included, are urging anyone affected by Hurricane Katrina to get in touch with them immediately. This way, the company can work with the client and establish a debt payment plan as early as possible. The earlier a client contacts their financial institution, the more assistance the institution can offer.


AMERICAN EXPRESS

www.americanexpress.com (800) 333-2639

American Express is currently providing assistance not only to their own card members, but to the families of their card members as well. They have waived late fees for all current balance payments, as well as current and future overdraft fees (for a limited period of time). In addition, American Express has automatically granted extensions of credit to their affected customers. Also, card members who have family affected by the hurricane can use their credit cards as debit cards, draw upon their accounts, and wire the money to family through a deal worked out with Western Union and Moneygram. From a less financial perspective, American Express has been actively involved in helping their clients acquire available lodging, facilitating check-in, and even helping with prescription replacement and medical referralsi.

CAPITAL ONE

www.capitalone.com (800) 955-7070

The Capital One Financial Corporation has been helping their clients by waiving fees for service charges as well as past due, and overdraft fees. They have also been giving additional consideration to customers affected by the hurricane that live outside of the zip codes designated as disaster areas. Additionally, Capital One has gone the extra step to avoid customer annoyance by suspending all outbound telemarketing calls to customers in designated disaster areas, based on area codeii.

CITI GROUP

www.citibank.com/us/cards (800) 950-5114

The Citigroup has decided to review their actions every 30 days to help customers. Currently, they are suspending payments, waiving interest and fees, and suspending collection calls on all accounts affected by the hurricane. In addition, Citigroup is no reporting any negative activity to any credit bureau, and disaster lines of credit will be implemented. Also, cash advance fees have been waivediii.

DISCOVER

www.discovercard.com (800) 347-2683

Discover Card has offered debt relief in the form of payment relief, and emergency replacement cards and PIN numbers. Customers with Discover accounts are urged to contact Discover as soon as possible so they can work with the customer and try to accommodate their individual needsiv.

MASTERCARD

www.mastercard.com (800) 622-7747

MasterCard International has been waiving current transaction fees on donations made from U.S. issued accounts to the Red Cross and AmeriCaresv.

VISA – USA

www.visa.com (800) 847- 2911

Visa USA has established an emergency hotline which any cardholder with a zip code in the disaster region can access: (800) VISA-911 (listed above). Through this hotline, members can obtain emergency lost card reporting/replacement, emergency cash, and emergency messaging with other Visa members. Visa has also set up mobile ATM’s to go into affected areas, so their members can access funds directly. Visa fraud detection department has been closely monitoring member accounts for any signs of fraud associated with the hurricanevi.

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