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Consumer Protection

Consumer Protection: Advice from The Bucks County Consumer Advocates

June 2008

Scam Alert:

Our office has gotten several calls from people who have lost substantial monies due to fraudulent lottery scams and reloading scams.  I know we have covered these issues before but we believe it is very important to warn our consumers of these scams and, more importantly, urge them to share this information with everyone they know.  It could help prevent someone from losing their life savings.

Everyone needs to know that if you win a prize you need to have entered a contest.  You do not need to pay for winning a prize, and you should never need to provide any financial information to collect the prize.  If that information is requested hang up the phone or throw the notification in the trash. The same rule applies to lotteries.  You would have to have purchased a lottery ticket in the country of origin in order to actually win.  It is also illegal to buy a foreign lottery ticket, unless you physically bought it in the country that is holding the lottery.  So if you receive one of the thousands of letters delivered everyday to consumers’ homes claiming they are lottery winners, throw it in the trash.

 The letters supposedly represent the Spanish lottery, Canadian lottery, English lottery and we have even seen a Netherlands lottery.  The letter says you have won and usually has some type of check in it.  Some of the checks look real and are actually drawn on real accounts that have been closed.  The checks are usually $2500 to $5000.  The letter is usually similar in the sense that they ask you to call a toll free number and talk to a claims agent.  Toll free numbers are as common as regular phone numbers and should not be considered legitimate just because we are accustomed to legitimate companies using them.

 Once you make the telephone call, the person on the other end will explain that the check should be deposited or cashed and that a portion of it, usually half, should be wired to a destination for processing your claim or paying some sort of tax.  The reality is that you are just wiring money to a criminal who now has your cash.  Eventually the bank will advise you that the check was fraudulent and that you are responsible for the amount. It could take the bank several weeks or even months to find the check is no good.   When you have sent the money the scammer will try and continue to make more excuses to get more money from you.  The excuses could be a courier fee, legal fees etc.  If the consumer realizes they have been scammed and stops wiring money the scammer will relent for awhile.

 The same scammer will usually call you several weeks later and pretend to be a recovery service.  They explain that they are always chasing these scammers and that for a fee they will recover the lost monies.  This is another red flag because the money is usually supposed to be wired again.  Some convince the victim that they will need more but that they are close to recovery.  The bottom line is you have become a fish on a hook, which means you become a target for numerous scams.
We have found that many of our victims are senior citizens and have also discovered that many victims never tell anyone because they are embarrassed or feel that their children or spouse will think they cannot handle their affairs anymore.  We realize this implication and we encourage everyone to ask their parents and friends if they have been approached by these scammers and if they have not, to warn them.  Our office has a free booklet on elder abuse.  The booklet also covers numerous common scams that people need to be aware of.  Even if you are not a senior but may have an elderly person in your life, friend or family, you should be aware of the scams.   Call 1-800-942-2669 and ask for Avoiding Elder Abuse/Fraud-A Guide for Everyone.  We encourage everyone to call our office before sending money or even providing personal or financial information to anyone.  We also want to remind people who have been taken advantage of that there is no shame in it.  These scammers are very good and this is how they make a living.  If they were not convincing and attentive they would not be able to fool people.

Q. My wife and I have been very interested in buying a new car.  We went to many different dealerships and checked out several of the cars that were on the lot.  So we felt confident about what we wanted when we went into the dealership Saturday night and bought the car we liked the most.  By Sunday afternoon my wife and I came to the conclusion that even though we love the car, we can’t afford the monthly payments.  We called the dealership right away and asked if we could return the car.  We were told no.  We were under the impression that we had a three day right to cancel.  They said that there is no three day right to cancel on a car, is that true?  L.T., Fairless Hills

A.  Yes, if you buy something at a store or their place of business and later change your mind, you may not be able to return the merchandise.  The Federal Trade Commission’s three day right to cancel or Cooling-off Rule, which it is also called, gives you three days to cancel purchases of $25.00 or more.  The three day right to cancel applies only to sales at the buyer’s home, workplace, or dormitory, or at facilities rented by the seller on a temporary or short-term basis, such as hotels, convention centers, fairgrounds and restaurants.  Under the three day right to cancel rule, your right to cancel for a full refund extends until midnight of the third business day after the sale.  The salesperson must tell you about your cancellation rights at the time of sale and give you two copies of a cancellation form.  To cancel a sale, sign and date one copy of the cancellation form.  Mail it to the address given for cancellation, making sure the envelope is post-marked before midnight of the third business day.  If you were not given a cancellation form, you can write your own cancellation letter.  This must also be post-marked within three business days of the sale.  If you cancel, the seller has ten days to return any promissory note or a refund of all your money.        

Q.  I have to replace my washer and dryer.  After a lot of shopping around I am thoroughly confused.  Every store tells me that they have a better unit.  I want to buy units that will be energy efficient and quality built.  Do you have any suggestions or information that may help us out?

A.  When spending money on new appliances, office equipment, etc., you want to get the most for your investment.  Considerable savings can be achieved by using energy efficient products.  The U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy (DOE) are working together to promote the use of energy-efficient equipment by awarding the Energy Star label to products that save energy.  Manufacturers or retailers volunteer to place the Energy Star label or those models that meet or exceed the criteria set by EPA or DOE.  The Energy Star label can help make purchasing decisions easier.  These products not only save energy, they help prevent air pollution and save money, frequently with better performance.  If you have Internet access, you can get some really great information from the government Energy Star site.  Go online to www.energystar.gov. You can also request information through the mail by sending a letter to US EPA, ENERGY STAR Hotline (6202j), 1200 Pennsylvania Ave NW., Washington, DC 20460, or call them at 1-888-782-7937. 

Q. My son just graduated from high school.  He has a part-time job that he has been working at for the last two years and has saved his money to buy a car.  He will be heading off for college in the fall and will need a reliable car.  I want him to handle this on his own, but would like to give him some knowledge going into this.  Can you give him some good advice for buying his first car?  S.P., Morrisville        

A. Before your son walks into a car lot, he should know exactly what he can afford and not allow the salesperson to try and sell him a more expensive car.  Also, he needs to realize that the monthly payment is not the only cost of the car.  He also has to pay for insurance, registration, gas, maintenance and repairs.  Car insurance for teen drivers is very expensive, and it’s more expensive for male teens than for female teens.  That may not seem fair, but it is based on statistics.  Of course we all know that filling your car with gas is very expensive.  As you can see, that actual cost of owning a car may be twice as much as the car payment.  So he needs to take into consideration what the cost will be for the car he chooses to buy.  He needs to figure out not only if he can afford the monthly payments of the car of his choice, but how much will it cost to insure?  What kind of gas mileage does it get?    Once he works out the financial side he needs to check the reliability of the car.  Take the car for a test drive, check the seat belts, see if the windows go up and down and the front seats move up and back, etc.  Have the car check out by a trusted mechanic.  If the dealer refuses to allow you to do this, walk away.  There must be something they are hiding.  Also, walk away if the salesperson starts to pressure you by saying that there is someone else who is going to buy it right away if you don’t buy the car right then and there.           Never be pushed to buy a car if you are not completely satisfied with it.  For a free brochure on buying a car, please contact Bucks County Consumer Protection at 1-800-942-2669.

Q. My mother received a letter from a company stating they believe they have found money that is hers.  The catch is that she has to send $25 to them.  Then they will provide her with further information.  I told my mother that I thought the state had some type of agency that handled unclaimed property and that the letter is a scam.  If she really does have money coming to her, how could we find out who has it and where it came from?  C.W., Riegelsville

A. There are numerous companies that try and sell information that consumers can obtain for free.  This company looks at the names on the unclaimed property listings that every state maintains.  In the case of Pennsylvania the list and property are maintained and held by the Treasury Department.  The Treasury Department receives abandoned property each year.  It comes from checking and savings accounts, forgotten stocks, dividends, un-cashed checks, certificates of deposit, life insurance policies, etc. Pennsylvania’s Abandoned and Unclaimed Property Act requires numerous businesses and financial institutions to turn over the property after a certain time frame.  You or your mom can call the Treasury toll free at 1-800-222-2046 and speak to someone who can help to look up your information.  Consumers can also go online to www.patreasury.org; click on the Search the Database heading on the left side of the home page.  Then just enter your name in the correct boxes.  Either way is quick and free, and maybe you will actually discover some lost treasure.  If you or someone you know has lived in other states they can also check for unclaimed property for no charge.  Go online to www.unclaimed.org, which is the National Association of Unclaimed Property Administrators.  They have links to every state agency that administers unclaimed property.        

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