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Consumer Protection

Consumer Protection: Advice from The Bucks County Consumer Advocates

July 2008

Q. I recently ordered a bundled package from a provider for my telephone, cable and internet service.  When the first bill came in I noticed a charge for almost ten dollars.  I had no idea what the charge was for, so I called the company.  I have still not received an answer.  I would appreciate any help you can provide. L. H., Levittown

A. We applaud you for taking the time and actually going through the bill.  Many consumers are so rushed they just take for granted that a bill from the utility or credit card company is correct and just send the payment.  The charge you found is for a credit monitoring service and apparently was not ordered by you.  The company is a third party billing service provider and works for numerous companies offering an array of products and services.  On the bill the name and number of the provider is clearly stated and if disputed or not paid will not terminate your phone service.  The company apparently did respond to your call, because when our office called they stated that a credit was applied and that the service was removed permanently.  They claimed it was an error and will send you a letter stating what happened and showing a zero balance.  Had you not been reviewing the bill and they charged you for several months it would have made it difficult to cancel.  By paying the bill you would have inadvertently approved the service.  Our office encourages consumers to review all their bills carefully.  Any charges or statements that are questionable or not stated clearly should be addressed immediately.  We would also suggest that all terms and conditions for a service be sent to you in writing before agreeing to any contract.  Remember the devil is always in the details.

Q. My wife and I are senior citizens and we still live in our own home.  We received a call from someone stating that they were from the Health Department and that they were coming out to check my hearing aid and give me a new one for free.  They gave me a time that they would be out to our home.  I have never heard of the Health Department coming out to check hearing aids.  Can you shed some light on this issue? D.F., Trevose 

A. You have a right to be leery.  The Health Department would not come out to your home to check on hearing aids.  Whoever called you used the Health Department’s name as a ruse so you would feel comfortable and let them in.  Most likely they want to get inside your home and try to sell you something that you don’t need or want.  The problem is that people sometimes feel that they have to buy the product or service just to get a salesperson out of their home.  This is called a pressure sale. One of the other red flags that I found in your conversation with these people is when they told you the hearing aid would be free.  It is very rare that a business is going to give you something for free.  There is usually a catch.  It would be best not to answer the door when they are due to arrive.  If they call to find out why, you just tell them that you don’t want them to come out to your home and hang up.  Don’t allow them to make you feel obligated in any way.  You are not! 

Q.  I have been working on getting a homeowners loan.  I went onto the Internet two weeks ago and went to a site that offered loans.  Basically I filled out a form and several companies looked at my credit report then offered loan packages to me.  I also went to my local financial institution and when they ran my credit report they advised me that there were so many inquiries that my rating actually dropped.  Can that really happen because of too many inquiries?  M.B., Reilly

A. Actually that can happen, but it is usually not the case.  Normally inquiries done within a reasonable time frame do not affect your credit score.  In today’s world, consumers need to be extremely savvy when it comes to their credit information.  Insurance companies, potential employers and lending institutions all use credit information to determine if you get a loan and what the interest rate will be.  A credit score is a system creditors use to determine your credit worthiness.  Credit scoring uses points for each factor of a consumer’s credit profile.  Bill-paying history, number of loans, type of accounts, late payments, collection action, and more are collected.  The system then adds the number of points together and that supposedly helps predict how creditworthy a person is or how likely it is that you will repay the loan.  An inquiry stays on your report for two years and is then removed.  The best way to improve your score is to keep all your bills paid on time. You may need to review your credit report to see if there are any discrepancies on it that may have led to a lower score.  The Fair and Accurate Credit Transactions Act of 2003 requires the credit bureaus to provide consumers with one free credit report each year.  It is a great way to monitor your credit report for any errors.  You can request this service by calling 1-877-322-8228 or go online to www.annualcreditreport.com.  Or you can write to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.  For a free brochure on credit scoring call Bucks County Consumer protection at 1-800-942-2669.

Q. I just moved into this apartment three months ago.  The neighbors are all telling me that the complex keeps raising the rent.  They are saying that the increases are excessive for what they give us in return.  Management never stated to me what kind of rent increase there will be.  I thought management wasn’t allowed to raise my rent.  Can management keep raising the rent without doing anything around the complex to explain an increase?  J.B., Morrisville

A. Yes, management may raise the rent as they see fit, unless you are in the middle of a year’s lease.  In your case management may not raise your rent until your one year is up.  Your landlord must send a 30 day notice with the amount of the increase.  Understand that the increase in your rent doesn’t have to coincide with any upgrades or repairs done to your apartment.  If you feel your apartment needs serious repairs then you should send this to management in writing, making sure you keep a copy for your records.  Be sure to state what the problems are in your apartment, what you would like to see done to fix the problems, and a time frame to do the repairs.  If the tenant doesn’t get any satisfaction, then the tenant can call Bucks County Consumers Protection at 1-800-942-2669 to try and get a resolution through mediation.  Consumer can also call our office for a free copy of the Landlord/Tenant booklet.

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.

 

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