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Consumer Protection: Advice from The Bucks County Consumer Advocates

March 2007

Q. I received a letter that congratulated me on being selected to become a consumer reporter in my region. It goes on to state that they are a marketing and research firm that is looking for individuals in my area to use in grading the services offered by major corporations, then they go on to name three major stores in the area. The letter then goes on to tell me that I have one probational training assignment that I am required to complete within 48 hours. The objective of this assignment will be to evaluate the effectiveness and efficiency of a payment system called ‘Money Gram’ or ‘ Western Union’. I am to pose as a potential customer sending money to a person in St. Catherine, Ontario, Canada. The money I am supposed to send is given to me in a check in the amount of $2,900.00. I want to do this, but I have heard so many scams that I’m afraid that this is one more. Could you please tell me if this is a scam? S.L., Warminster

A. You have a right to be leery. There are more and more scams that are now sending checks that make you think that this isn’t coming out of your pocket, but it would. The way that this scam works is that you would put this in your account. You take the money and send it the way that they ask you to. Later on when your bank finds that this is a bogus check, you are responsible for repaying the bank the amount of the bogus check.

Q. I received a letter from a business that wants me to fill out a survey. I can get discounts and coupons from them for different businesses if I complete the form and send it back. I know there are a lot of scams out there but I know there are legitimate companies that send surveys out. Do you think it would be okay to fill out the information and send it out? C. P., Warwick

A. In today’s marketplace, businesses want to know as much as possible about potential customers. They want to know everything from what brands you buy to your household income level. Although the coupons and discounts may be attractive, you can bet that you will end up on numerous mailing lists for all kinds of offers. Not all the offers may be what you want or care about, not to mention that the information you give is really no one’s business at all. The Do Not Call List has greatly reduced the annoying sales calls, but it has led to an increase in mass mailings that will fill your mailbox. Our office truly believes that personal and financial information should remain off limits to everyone. Even the businesses that you have to deal with usually share your information with their affiliates.

Q.  After the funeral of one of our friends some of us got to talking about the high cost of funerals.  It seemed the cost of burying a loved one is either extremely high or our friend’s family was taken advantage of.  We are all up there in age and are wondering if there is a way to make sure our families are not taken advantage of?  K.P., Warminster

A.  You may want to think about pre-planning your funeral.  This way it is not left to your loved ones.  There is a federal law that makes it easier for you to choose only the goods and services you want or need when planning a funeral.  This law also requires funeral directors to give you itemized prices.  Many funeral providers offer a variety of package plans that include products and services that are most commonly sold, but you are not obligated to buy a package plan. You have the right to buy the individual products and services you prefer.  Most funeral providers are professionals who work to serve their clients’ needs and best interests.  Unfortunately, some do not.  That is why there is a funeral law, which regulates the actions of funeral directors, homes and services.  Consumers can contact Bucks County Consumer Protection at 1-800-942-2669 to get a free brochure on “Funerals: A Consumer Guide”

Q.  I was just wondering about insurance products and how to evaluate different companies.  Is there somewhere I can get brochures and some specific insurance questions answered?  L.H., Newtown

A.  Insurance is one of those things most people need.  That being said most people really do not take the time to shop around and get different quotes.  There is a wide variety of products available and many companies will offer discounts if the consumer takes multiple policies from the same insurer.  Not all insurance and insurers are created equal.  When comparing make sure it is apples to apples.   The Pennsylvania Department of Insurance has a great website for consumers.  They will answer questions via email and phone and brochures are offered for a vast array of insurance topics.  The website is www.ins.state.pa.us and the automated consumer hotline is 877-881-6388

Fraud Alert! Avoid Tax Fraud

The information in your return contains everything that an unscrupulous third party needs to steal your identity, file tax returns on your behalf, steal your refund, and more. There are many scams associated with filing your taxes. Below are a few tips to help avoid some of the more common scams:

• Be realistic. If it sounds too good to be true, it probably is. From companies that promise to file your taxes for free, to sites that claim you don't have to pay tax because it's unconstitutional--keep an eye out for deliberately misleading statements.
• Be informed. Before you file your taxes, spend a little time at the web site for the IRS.
• Never respond to unsolicited e-mail offers or requests for information. The IRS does not use e-mail to communicate any personal information, and legitimate tax-preparation companies should not approach you with unsolicited e-mail. These messages are most likely identity-theft phishing scams.
• Choose your tax-preparer or tax preparation software with care. Ask people you trust recommendations. For more information about e-file partners and tax software, visit the IRS e-file Partners for Taxpayers website page.

The IRS warns taxpayers to avoid this common scheme:

Return Preparer Fraud: Dishonest return preparers can cause many headaches for taxpayers who fall victim to their schemes. Such preparers make their money by skimming a portion of their clients’ refunds and charging inflated fees for return preparation services. They attract new clients by promising large refunds. Some preparers promote filing fraudulent claims for refunds on items such as fuel tax credits to recover taxes paid in prior years. Taxpayers should choose carefully when hiring a tax preparer. As the old saying goes, “If it sounds too good to be true, it probably is.” Remember that no matter who prepares the return, the taxpayer is ultimately responsible for its accuracy. In 2006, 109 tax return preparers were convicted of tax crimes and sentenced to an average of 18 months in prison.

• If you think there is another person using your Social Security number to file income taxes, call the Social Security Administration at (800) 772-1213.
• If you suspect a company or an individual of committing tax fraud or not obeying tax laws, call the IRS at (800) 829-0433.

For more information or to report a scam- contact any one of the Task Force members:

Bucks County Crimes Against  Older Adults Task Force-
Fighting Abuse, Neglect, and Exploitation of Older Adults in Bucks County

Bucks County District Attorney’s Office          Bucks County Area Agency on Aging
215-348-6344                                                             215-348-0510
Bucks County Consumer Protection                 Network of Victim Assistance
215-348-6060                                                             1-800-675-6900
Bucks County Register of Wills                          Bucks County Coroner
215-348-6265                                                             215-348-3852

Department of Consumer Protection /
Weights and Measures
Michael D. Bannon
Director
50 North Main Street
Doylestown, PA 18901
Phone: 215-348-7442
Fax: 215-348-4570
Canny Consumer Hotline 1-800-942-2669