With complaints over debt collection practices skyrocketing, Better Business Bureau of Southern urges consumers  to protect themselves against bogus and unscrupulous collectors.

The Consumer Fraud Task Force says that consumers need to know their rights if they are contacted by businesses attempting to recover debts. The Federal Trade Commission’s Fair Debt Collection Practices Act sets out specific rules on how collectors must operate.

“In this difficult economy, people who have never before dealt with debt collectors are receiving phone calls,” the Task Force said. “Sometimes, these callers are trying to collect on debts that were settled years ago or never existed at all. But even callers trying to collect on legitimate debts can become overly aggressive and violate consumers’ rights.”

Some of the questionable or illegal debt collecting practices include:

• Attempting to collect “phantom” or “zombie” debts.  Most often, these are debts that were never owed or were previously paid or otherwise discharged.
• Harassing or intimidating collection tactics, usually involving persistent phone calls.
• Telling debtors they will be arrested or have their property seized unless they make payment.
• Claiming that the collector is a lawyer or affiliated with a law firm when that is not the case.
• Withdrawing money from a consumer’s bank account or charging his or her credit card without (more…)

A rapidly growing area of fraud in the U.S. involves taking advantage of those needing help with immigration processes. The U.S. Departments of Justice, Homeland Security and the Federal Trade Commission recently announced their initiative to fight immigration services scams.

The common thread in this type of fraud involves the unauthorized practice of immigration law. In 2009, Better Business Bureau received several calls from Spanish-speaking consumers inquiring about a Colorado Springs-based company called Immigration Center, amongst many other names, which seemed to be operating in such a manner. The company was shut down in January, 2011 by a federal judge at the request of the FTC.

According to the FTC, the defendants representing the company were charged with violating federal law by misrepresenting:

• That they were authorized to provide immigration and naturalization services.
• That they were affiliated with the U.S. government.
• That the fees paid by consumers would cover all the costs associated with submitting immigration documents to the United States Citizenship and Immigration Services (USCIS).

“Communities of non-English speaking people are always at a higher risk for being targets of scams,” said Kim States, BBB President. “Victims of immigration service’s scams face a huge loss of time and money (more…)

June 15 is World Elder Abuse Awareness Day (WEAAD), and Better Business Bureau of Southern Arizona is marking the occasion by calling attention to the many ways the elderly are victimized in southern Arizona, and throughout the world.

BBB receives hundreds of phone calls each year from senior citizens who have been targeted or victimized by scammers. These can range from common scams such as bogus travel deals or lottery schemes to outright financial fraud.

“Southern Arizona is an attractive destination for retirees and according to 2009 Census Data, more than 15 percent of Pima County’s population is 65 or older,” said Kim States, BBB President. “One of the more common types of abuse that BBB often hears about is financial fraud.”

Financial elder abuse occurs when seniors’ banking or credit accounts are exploited by scammers who take advantage of the vulnerabilities sometimes associated with age, explains States.

What makes the crime particularly frightening is that in most cases the abuse is carried out by someone the senior knows, such as a family member, caregiver or friend.

“Many victims do not realize they have been taken advantage of,” said States. “Or if they do know, they may not want to tell anyone due to embarrassment or fear of losing what independence they may have.”

Unfortunately financial elder abuse can be difficult to identify. If often takes a caring family member, friend or caregiver to recognize that fraud has occurred. These are some signs to look for:

• Belongings or property is missing
• Unusual bank account activity
• Complaints from seniors that they can suddenly not afford normal purchases
• Suspicious stories about people that normally wouldn’t be involved in personal affairs now being (more…)