3 posts from 2009
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- February
- March
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- May
- June
- July
- August
- September
- October
- November
- December
Charlotte radio personality Ramona Holloway got a call the other week from her aunt, who sounded excited about a check she received in the mail.
The 66-year-old told Holloway the $3,999 check was from a company recruiting “mystery shoppers.” All she needed to do was deposit the check, buy a few products and review customer service at stores, then wire back $3,000 to test how money wiring services perform. She even could keep $300 for herself.
“(We) come from a long line on shoppers, so this was like hitting the lottery” for her aunt, Holloway said. “She thought it was the biggest blessing.”
But Holloway urged her aunt to first contact the local Better Business Bureau and bank. The check was quickly found to be fake, part of a scam seen around the country and the Carolinas.
It's just one persistent scam still making the rounds. A bad economy provides boom times for scammers, experts said, providing even more reason for consumers to be wary of what they get involved with and how they give out personal information.
“When the economy is down, scammers crawl out from under their rocks to take advantage of people,” said N.C. Attorney General Roy Cooper, whose office runs a consumer protection division.
Total complaints from the Carolinas to the Internet Crime Complaint Center are estimated to have increased by nearly 40 percent last year. Complaints topped 9,300 at the center, which is operated by the FBI and two other agencies.
Other scam-related surveys for 2008 are not finished yet. But Cooper and others report seeing a lot of credit repair, foreclosure, investment or mortgage scams, as well as offers to make a quick buck.
“At some level, you almost have to admire the scammers,” said Tom Bartholomy, head of the Better Business Bureau of Southern Piedmont. “They are pretty creative. They can be very successful, unfortunately.”
Here are some scams to watch out for:
Tiny credit card charges
How it works: Scams come in all sizes.
In the Charlotte area and around the country, for instance, charges as small as 25 cents have been popping up on credit card statements and billed to Adele Services of Melville, N.Y. But there is no phone listing for it, and consumer advocates say the company name appears to be fictitious.
Scammers could be testing credit card numbers to see which are real, and may use them later for much larger charges.
“If you get 25 cents from a million people, it can really add up,” said Mitch Katz, a U.S. Federal Trade Commission spokesman in Washington, D.C.
Tips: Bartholomy's office has received 20 or 30 calls about this issue. He tells them: contest any unusual charge on your credit card, no matter how small.
People should also monitor their accounts at least once a week.
Resources for
We are a week into 2009, and already it's been a roller coaster ride with the economy. We
have little or no control over what's happening in Washington and on
Wall Street. We do, however, have control over our own wallet. Financial guru Suze Orman spent an hour on Oprah Thursday afternoon showing us how to best manage our money in the new year. "If
you have credit card debt, your number one goal is to get out of credit
card debt before we have a savings, before you do anything. Your credit
card debt in today's economy, according to this action plan, has got to
go," Orman said. Local financial planners agree. Tom O'Brien is
a local CPA. He believes you should limit your consumer debt payments,
including your car loans, to less than 15% of after tax net take home
pay. He says a lot of people are way over that, and they get into trouble because they can't simply pay their bills every month. Orman
recommends paying the minimum on every credit bill you have, every
month. Then, pay extra on the card with the highest interest rate until
one-by-one you pay off every card. If your debt is under
control and your looking to start saving in the new year, there are
several options where you can still make a good return. Resources for
When it comes to New Year's resolutions, Kathy Johnson of Sacramento, Calif. has two simple money-savers in mind: "to get out of debt and pay off all my credit cards."
Johnson, a single mother, said her debts have accelerated due to health issues, unexpected veterinary bills and mounting interest charges.
Many are facing similar situations this year, especially given the painful enormity of 2008's job and investment losses.
Here are tips from a financial adviser, a credit card expert and a Certified Public Accountant.
-- Gather the paper
January is the perfect post-holiday time to collect your wits and your paperwork. Gather up all your financial documents -- bills, credit card statements, insurance records -- and create a filing system by category.
"Keeping financial and family records in an organized manner can save you time, money and trouble in the event of an emergency," said David Colgren, spokesman for the California Society of CPAs.
He recommends storing crucial documents -- such as birth certificates, property deeds, insurance policies, wills and power of attorney authorizations -- in a safe, fireproof location, such as a safe deposit box. Keep copies in clearly marked files at home. And be sure your spouse, a close friend or family member and executor (if you have a will or trust) know where those documents are located.
Also, CPA Perry Ghilarducci, owner and president of Avaunt Ltd. in Sacramento, recommends that if you've changed your marital status, bought or sold property, or want to change beneficiaries on life insurance and retirement accounts, take time now to review those documents, particularly your will and estate plan.
-- 'Power' down on payments
To get a lid on debts, write down all your income and every expense, including credit card payments, dentist bills, car loans, cable TV, even the daily coffee-and-muffin habit.
Hal Young, a financial adviser with Brecek and Young Advisors Inc. in Folsom, Calif., says the key is to eliminate enough monthly expenses to come up with a so-called "power payment." Whether it's $20 a week or $300 a month, it becomes an addition to your regular minimum payment on at least one outstanding debt.
He recommends making a chart, similar to the system in "Debt-Free on Any Income," by co-authors Lyle and Tracy Shamo. List every creditor by interest rate, monthly payment and number of remaining payments.
Resources for
