Departments
Community Services
Consumer Protection
Consumer Protection: Advice from The Bucks County Consumer
Advocates
July 2007
Q. I was recently at a farmers market in Philadelphia and really enjoyed the experience. We bought several items including one that was priced by the pound. I know that in Bucks County scales need to be inspected and have a seal on them. The scale they used had no seal and when we looked around at several other stands we noticed some had old seals and others had none. Who could we call to make sure the market vendors get the scales up to date? L.H., Levittown
A. According to the Pennsylvania Weights and Measures Act all scales that are used in a retail transaction are required to be inspected yearly. Bucks County, as well as several other counties, has its own Weights and Measures department. In Philadelphia you would call the License and Inspections department. Consumers should look for a county or state seal on scales, gas pumps and even heating fuel delivery trucks. Consumers with questions about Bucks County Weights and Measures can call 215-348-6060.
Q. My friends and I were talking at the senior center about calls from different charities. We all decided as we get older more charities are calling us for donations. We were wondering if maybe some of these charities are scams. Please provide us with some warning signs. R.P., Richboro
A. Donors should avoid any charity or fund-raiser that refuses to provide written information about its identity, its mission, its cost, and how the donation will be used. Be careful of names that closely resemble that of a better-known, reputable organization. Another warning is if they guarantee sweepstakes winnings in exchange for your contribution. Be leery of people calling to thank you for a pledge that you don’t remember making, or who offer to send a courier or overnight delivery service to collect the donation immediately. Consumers who are interested in giving to a charity should first ask for information in writing. Next, consumers should investigate the particular charity that they are interested in supporting. Consumers can contact the Bureau of Charitable Organizations at 1-800-732-0999 to get information on a particular charity. There are also a couple of websites you can use to search a legitimate charity. One of them is the BBB Wise Giving Alliance (www.give.org). Another is called American Institute of Philanthropy (www.charitywatch.org). Last but not least is GuideStar (www.guidestar.org).
Q. My fiancé and I are planning to buy a house. I didn’t realize how bad my credit was until we were denied a mortgage. The other night we were watching TV and an advertisement came on about credit repair. It claimed it could erase bad credit. My fiancé wants to give the company a call, but I think it is a scam. What can you tell us about these types of companies? K.M., Feasterville
A. No one can legally remove accurate and timely negative information from a credit report. Only time, a conscious effort and a personal debt repayment plan will improve your credit report. Consumers who end up using a company who promises to remove their bad credit end up spending more money they don’t have and are still in the situation they were trying to get out of. If you are not disciplined enough to create a workable budget and stick to it, work out a repayment plan with your creditors or keep track of mounting bills, consider contacting a credit counseling organization. Many credit counseling organizations are nonprofit and work with you to solve your financial problems. There are counseling centers right in the area. Contact Bucks County Consumer Protection for more information at 1-800-942-2669.
Q. I have not received many junk faxes for the past year, however this past week I have gotten several. I notified the sender but I am still getting them. How can I address this problem? M.D.B., Doylestown
A. The Federal Communications Commission (FCC) administers the Junk Fax Act which was passed by Congress in 2005. The rule states that it is unlawful to send unsolicited advertisements to any fax machine, whether it is business or residential, without the recipient’s prior express invitation or permission. They may also be sent if there is an established business relationship. If a business or residence lists a fax number on an application, renewal form or as contact information in their advertising then unsolicited faxes may be sent unless you clearly state on the materials that unsolicited faxes are not accepted. The rule also requires that businesses and residences have an opt-out option. The FCC also has a complaint form designed just for junk faxes. We suggest that you call the FCC at 1-888-225-5322 or go online to www.fcc.gov to read all the specifics of the junk fax act and its requirements. Complaints can be done online or may be printed and mailed to the FCC.
Q. I am considering leasing a new car. Some of my friends say that I would be crazy to lease and that I should just buy. Can you give me some advice so I can make an informed decision? S.L., Trevose
A. It is important to consider all the advantages and disadvantages. Leasing can be complicated and is not right for everyone. If you like to own free and clear and usually drive your car for more then four years, buying is probably a better deal. If you are considering a lease, there are several points to keep in mind. Agree on a selling price before you even mention leasing to the dealer because the lower the price, the lower the lease payments. Stick with a lease where you can turn in the car at the end of the lease and walk away or buy it at a predetermined price. Ask if “gap insurance” is included which will pay the difference between the residual value of the car and the amount still owed on it if you stop using the vehicle for some reason such as a collision. Also, be sure you understand the lease terms, such as mileage allowances, what constitutes “wear and tear” charges, capitalized cost, and residual value. Some leasing advantages include getting more car for smaller monthly payments and low or no down payments. Consider both sides carefully.
Q. I would like to join a health club and start to get in better shape. I have never been a member and would like to avoid a bad experience. Can you give me some information? S.R., Bensalem
A. Not all health clubs and gyms are created equal. First piece of advice is to visit several facilities. The hours of operation, equipment and location need to fit with an individual’s schedule or you may give up before you start. While visiting make sure you do not get pressured into signing anything. Some clubs like to get the consumer to join on the spot. This is where many people make a costly mistake. Some clubs have long term and complicated contracts. If you need to squint to read the fine print on the reverse side of an application then you are generally better off not signing. Canceling a membership can also be a complicated process with very restricted guidelines and costs. Look for clubs that offer straightforward fees and short term or monthly contracts.
Q. My husband received a letter from his primary credit card. It said his interest rate was going from 10.99% to 18.99% due to late payments on our auto loan. We have been late on two payments, we did not default on the loan and the payments were only a few days late. Can they really change that rate even if they were not adversely affected by the auto payments? L.H., Levittown
A. The credit card industry for the most part continues to use this practice. The practice is called “universal default”. Some card issuers have stopped this practice. Unfortunately yours has not and at this time the practice is legal. The good news is the entire industry is under pressure from the Unites States Congress and Senate to change their ways. There has been legislation introduced to stop the universal default practice along with other practices considered anti-consumer. Some issuers charge a fee for on-time telephone payments, while others use excessive late fees and penalties. The worst part is that the terms of your agreement can change anytime. Although difficult to find, there are some credit card companies that have chosen to change their practices. It may be the threat of regulation. Even if they are trying to clean up their act to prevent long overdue regulation, consumers need to keep pressure on the legislators. There are a host of issues that really need to be looked at including arbitration clauses, refusal to allow class action suits, outrageous interest rate hikes, repeat over-the-limit fees, and two cycle billing which allows for interest charges for on-time payments. The key to change is to advocate for yourself and others.
Q. I live alone and I believe I am extremely cautious. There are times when the door bell rings and I look out and don’t know who the person is. I don’t usually answer the door if I can’t identify the person. What I’m afraid of is that I may miss a service person coming out to fix a problem. How can I keep myself safe? H.L., Bristol
A. Most “legitimate” callers at your front door would have made contact with you beforehand and set up an appointment. If it is someone who is selling something door to door, ask them to show you their permit to solicit in your area. You can also contact your boro or township office to determine if the seller has a permit to solicit. There is no reason to immediately invite that person into your home. If someone comes unannounced to the door saying they need to check or repair something in your home, keep them outside. Check to see if they have a service vehicle with a company name on it. Ask for photo ID and call the company to verify their identity. If for some reason you feel threatened, call 911 to report trespassers on your property.
Fraud Alert!
Beware of the PONZI Scheme!
Every day, American consumers receive offers that just sound too good to be true.
According to the FBI, a Ponzi scheme is essentially an investment fraud wherein the operator promises high financial returns or dividends that are not available through traditional investments.
Instead of investing victims' funds, the operator pays "dividends" to initial investors using the principle amounts "invested" by subsequent investors. The scheme generally falls apart when the operator flees with all of the proceeds, or when a sufficient number of new investors cannot be found to allow the continued payment of "dividends."
This type of scheme is named after Charles Ponzi of Boston, Massachusetts, who operated an investment scheme in which he guaranteed investors a 50 percent return on their investment in postal coupons. Although he was able to pay his initial investors, the scheme dissolved when he was unable to pay investors who entered the scheme later.
Some Tips to Avoid Ponzi Schemes:
- As with all investments, exercise due diligence in selecting investments and the people with whom you invest.
- Make sure you fully understand the investment before you invest your money.
- Education, good judgment, and a healthy dose of skepticism are the best defenses against becoming a victim.
- Remember, if it looks too good to be true, it probably is!
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
www.crimesagainstolderadultsbucks.org 1-800-490-8505
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