The Survive and Thrive Boomer Guide

Attorney general's action a good reminder to beware when selecting a debt management firm

TV ads abound for companies that promise to help you figure out better ways to handle your debts, but an action in Texas is a reminder that consumers need to use caution when selecting debt management companies.

'Debt management' company charged

Texas Attorney General Greg Abbott has charged a Dallas-based “debt management” firm with defrauding its customers.

The state’s enforcement action sought an asset freeze and temporary restraining order against Shane V. Garner and Credit Alliance Group dba Credit Services Today.

The defendant marketed its services through a now-defunct website and direct customer e-mails, according to state investigators. Using purchased leads on individuals with debt-related problems, CAG allegedly contacted prospective customers claiming it would eliminate 20 to 60 percent of their outstanding balances within three years.

CAG promised that customers wouldn’t owe the firm “a dime” if the firm failed to deliver on its claims. However, the state’s investigation revealed that customers were charged up-front fees, sometimes up to 35 percent of the debt they owed, and that CAG failed to deliver on its services.

CAG customers were promised that their payments to the firm would be deposited into separate accounts that would be under their control and managed by the firm, according to court documents filed by the state. However, state investigators found that those promises weren’t honored and that CAG deposited/commingled customers’ funds into its own operating account. As a result, customers had no control over their own money.

In addition, court documents said Garner used customer funds to pay his personal bills. 


CAG clients discovered they couldn’t receive refunds on advance fees paid, nor on the accumulated funds the defendant promised to hold in trust to help manage and resolve their debts, the agency said.

The Attorney General’s Office review of 52 CAG clients’ accounts – out of about 800 – showed that CAG owes these 52 clients more than $180,000 in escrowed funds alone.

So beware if you’re selecting a debt management firm. You don’t want to end up in worse financial condition because of the company you select to help you.

Consumer credit counseling

You can get free or low-cost help from a trained, certified counselor who will assist you in determine the best options for your financial situation. See the National Foundation for Credit Counseling’s website to locate a credit counselor near you.

Money management classes

April is Financial Literacy Month, and you can find classes on managing your finances in most states during Money Smart Week April 22 through 27.

Copyright 2013, Rita R. Robison, Consumer Specialist

Happy Tax Day, April 15

I filed my taxes last week. I’m so happy I have them done.

If you’d like a free item, especially fast food or sugar, on Tax Day, see my article “Companies Offering Free Items to Help Reduce Your Income Tax Stress.”

I’d go get a donut from Krispy Kreme, which is free if you buy milk, or Potato Cakes from Arby’s, but I had wine and chocolate at a fundraiser yesterday and I’m not planning to go out today so a special trip for free items would be a waste of gas.

However, some of the freebies last beyond April 15. Office Depot's offer of free shredding of five pounds of documents expires May 1. I don’t have to worry about the sugar content of that one.

If you get an e-mail from the Internal Revenue Service or the company you used to file your taxes electronically about a problem with your taxes, check it out carefully. Last year, I received a notice my return was incomplete, but it was a legitimate e-mail. Scammers are taking advantage of e-mails like these to get private information so they can steal your money or identity. Be an alert, informed consumer.

Have a great day. If you’re still struggling with your taxes, my best wishes to you.

Copyright 2013, Rita R. Robison, Consumer Specialist

Watch out for tax scams as Tax Day approaches

April 15 is almost here, but that doesn’t mean consumers can’t get scammed by unscrupulous tax preparers.

“Tax scams peak around tax filing day,” Oklahoma Attorney General Scott Pruitt said. “We cannot stress enough to watch out for those who promise faster turnarounds, bigger refunds, or credits. What looks like a good deal at first, could cost you more in the long run.”

The Internal Revenue Service points out scams to be aware of this year:

• Identity thieves are using people’s Social Security numbers or other identifying information to fraudulently file tax returns and claim refunds.

• Fake e-mails, known as phishing, from the IRS are being used to attempt to obtain confidential personal and financial information so the sender can steal consumers’ identity. Never respond to these e-mails or open the attachments.

• Unscrupulous tax preparers prey on taxpayers by encouraging consumers to claim false information for larger refunds, which can result in fraud or theft.  

• Scammers often promote that “free money” is available from the IRS and claim that securing this money requires little or no documentation. Some even guarantee fraudulent Social Security refunds or rebates.

To avoid becoming a victim this tax season, the Attorney Generals Office’s offers these tax safety tips:

• Be wary of offers to split your refund in exchange for filing your return.

• When you file your taxes electronically, use a software provider that’s authorized by the IRS. If using a tax preparer, make sure they’re authorized to do so by the IRS.

• Look out for unsolicited offers to prepare your taxes from an unfamiliar company or one that’s located far away.

Pruitt reminds taxpayers that they’re responsible for what’s on their returns even if someone else prepared it for them.

If something sounds too good to be true, then it probably is, he said. Staying alert and being cautious can help prevent costly mistakes.

If you think you may be at risk or have been a victim of tax fraud, contact the IRS at 800-908-4490. If you have questions about your taxes, visit www.IRS.gov or call or visit your local IRS office.

Copyright 2013, Rita R. Robison, Consumer Specialist

Taxes, midlife changes, retirement, destructive behavior, and compassion are the topics for this week’s Best of Boomer Blogs

Lisa Garon Froman of TAO Flashes is the host for this week’s Best of Boomer Blogs #301.

The boomer blog roundup is a collection of like-minded blogs cooperating to share their best stories of interest to the Baby Boomer Generation.

With half of the country covered in snow in late winter-early spring snowstorms, baby boomer bloggers are writing about fraudulent tax preparation schemes, midlife change, 57 percent of U.S. workers reporting less than $25,000 in total household savings/investments excluding their homes, how trying to be “cool” leads to destructive behavior, and the philosophies of Lao Tzu in “Tao Te Ching.”

Be sure to check back next week to see what baby boomer bloggers are thinking and writing about.

Copyright 2013, Rita R. Robison, Consumer Specialist

Watch out for tax preparers who are scam artists

The deadline for filing personal income tax returns is less than a month away

Each year, consumers file thousands of complaints about tax preparation schemes. 

Some scammers prey on seniors or college students by impersonating tax authorities, soliciting follow up information on a tax form, and collecting identification numbers and social security information, which is then used to steal people’s money or identities.

Others have used “spoofing technology” to make their caller ID numbers come up to look like they’re from the Internal Revenue Service.

Taxpayers should be watch out for tax preparation businesses that advertise low fees to get the customer in the door, but then increase the final fee by hundreds of dollars claiming the tax return was more complicated than anticipated. Another trick fraudulent tax preparers use is to electronically withdraw more than the agreed on fee without notice to the consumer.

As taxpayers look for help in filing their taxes, New York Attorney General Eric T. Schneiderman offers the following tips for consumers:

• Use recognizable and established companies.

• Check the tax preparer's qualifications.

• Check the tax preparer's history through the Better Business Bureau at www.bbb.org.

• Ask for a written estimate of all fees.

• Avoid those who base their fees on a percentage of your refund.

• Make sure the tax preparer is accessible, even after the April due date.

• Never sign a blank return.

• Review entire return before signing.

• Make sure the preparer signs the tax form and includes a Preparer Tax Identification Number.

• Avoid "too good to be true" promises.

Consumers should also beware of refund anticipation loans or RALs and refund anticipation checks or RACs.

RALs are often marketed as "instant" or "24-hour" refunds but are actually high cost loans that come with fees and interest that reduce the amount of any refund.

RACs are temporary bank accounts established on behalf of a taxpayer into which a direct deposit refund can be received but these also come with fees that will reduce the consumer’s refund.

The tax preparer must give the consumer a written disclosure that explains:

• You aren’t required to take out a refund anticipation loan or refund anticipation check in order to receive your tax refund.

• The amount of fees and interest you’ll have to pay if you take out a refund anticipation loan or refund anticipation check.

• The amount you’ll receive after the fees and interest are deducted.

• The annual percentage rate of interest that you’ll be charged.

• The amount your refund will be if you don’t take out a refund anticipation loan

Consumers can avoid the costs of refund anticipation loans and checks by filing their return electronically and having refunds either mailed or directly deposited in their own bank account.

Check with your local library to see if there are any groups in your area that offer free income preparation assistance for older adults.

For additional information, see the Better Business Bureau’s “Choosing a Tax Preparer,” AARP’s “Don’t Get Scammed by Phony IRS Agents,” and the IRS’s “How to Choose a Tax Return Preparer.”

Copyright 2013, Rita R. Robison, Consumer Specialist

Mental health, retirement jobs, midlife growth, airport timing, and a fraud warning are the topics for this week’s Best of Boomer Blogs, it’s 300th offering

I’m the host for this week’s Best of Boomer Blogs #300.

The boomer blog roundup is a collection of like-minded blogs cooperating to share their best stories of interest to the Baby Boomer Generation.

For the 300^th Best of Boomer Blogs, Laura Lee Carter of the Midlife Crisis Queen says: "It's been years now since I first joined this blog roundup, and now I run it. What a great way to connect with other boomers and share the bounty of information which can only help us all age in a better way."

Today Laura Lee wants to share new information about boomer mental health. Boomers share a specific time in American history. They grew up on heavier career and job competition and 24/7 in-your-face commercialism, as American culture moved away from trust in each other and in government. How do these facts affect boomer mental health as a generation?  Here's what the Midlife Crisis Queen has learned.

Tom Sightings of Sightings Over Sixty has taken a part-time job, and in his post “Working It Out,” he ponders the pros and cons, as well as the necessity, of working in retirement.

Lisa Garon Froman of TAO Flashes writes that spring is a perfect metaphor for midlife. It’s a time of growth, and it brings an opportunity to step out of the shadows and make space for new interests or long-denied passions.

Sara Cornell of Blue Blinds Media and Life After Married writes that what time you arrive at the airport for a scheduled departure tells a lot about your personality.

On my blog, I let consumers know about an action by the Federal Trade Commission temporarily shutting down a Brooklyn-based company that allegedly used deception, threats, and intimidation to induce elderly consumers to pay for medical alert systems they neither ordered nor wanted.

Be sure to check back next week to see what baby boomer bloggers are thinking and writing about.

Copyright 2013, Rita R. Robison, Consumer Specialist

FTC stops company from using threats to get consumers to pay for medical alert devices

A U.S. district court has temporarily shut down a Brooklyn-based company that allegedly used deception, threats, and intimidation to induce elderly consumers to pay for medical alert systems they neither ordered nor wanted

In its lawsuit, the Federal Trade Commission charges that telemarketers for Instant Response Systems call elderly consumers – many of whom are in poor health and rely on others for help with managing their finances – and try to pressure them into buying a medical alert service that consists of a pendant that supposedly allows them to get help during emergencies.

Instant Response Systems allegedly has falsely claimed during sales calls that consumers who didn’t order the medical alert service have bought the service and owe the company money - often hundreds of dollars, the FTC said in a statement. 

The company also allegedly has shipped bogus invoices and unordered medical alert pendants to consumers without their consent, has repeatedly threatened consumers with legal action in order to induce and coerce payment, and has subjected them to verbal abuse. 

In addition, the FTC contends that Instant Response Systems has illegally made numerous unsolicited calls to consumers whose phone numbers are listed on the National Do Not Call Registry.

Consumers who tried to contact the company to dispute the false charges or find out how to return unopened packages often were unable to reach anyone, the FTC said. If they did reach a representative, they allegedly faced threats, verbal abuse, and demands that they pay for the product.

The FTC charged the company and its principals with making illegal misrepresentations to consumers, violating the Telemarketing Sales Rule by calling phone numbers on the DNC Registry, and violating the Unordered Merchandise Statute by sending consumers pendants they didn’t order.

The defendants charged in the case are Instant Response Systems, LLC, also doing business as Response Systems, B.B. Mercantile, Ltd., Medical Alert Industrial, and Medical Alert Services; and Jason Abraham, also known as Yaakov Abraham, individually and as an officer of Instant Response Systems.  Abraham was previously sued by the FTC in 2003 for selling international “drivers’ licenses” and phony university diplomas.

Copyright 2013, Rita R. Robison, Consumer Specialist

Watch out for these top scams

It’s National Consumer Protection Week.

To help you be an alert, informed consumer, the Better Business Bureau is offering information on the hottest scams being used to bilk consumers as part of its consumer week educational efforts:

Learn more about the biggest scams of 2011 – Did Facebook try to give you $1 million? Did you see the video of Osama bin Laden’s death? Did you get a middle-of-the-night call from the hotel front desk? These all were on the BBB’s Top Ten Scams of 2011 list.

Scammers also were at work on tricking consumers about job offers, sweepstakes and lotteries, social media and dating, home improvements, check cashing, e-mail offers, sales, mortgages, and investments.

Know Your Scam: Your Guide to Outsmarting the Top Scams – Here are the top categories of scams the BBB hears about, and what you can do to protect yourself. 

You can sign up to get the BBB’s Scam Alerts by e-mail.

It’s also important to file a complaint with the BBB and/or an agency when you’ve been scammed 

• Better Business Bureau

• Attorney General’s Office in your state

• Consumer Financial Protection Bureau

• Federal Trade Commission – The commission doesn’t resolve individual consumer complaints.

Be sure to be alert, and avoid scams in 2013.

Copyright 2013, Rita R. Robison, Consumer Specialist

Six ways to be a better shopper

It’s National Consumer Protection Week.

Government agencies, consumer organizations, and advocacy groups are joining forces March 3 to 9 with shopping strategies and consumer tips to empower you to make better buying decisions and protect your rights in the marketplace.

Sales pitches and financial advice come at you from every direction – by phone, by mail, and every time you read an ad, go online, or turn on your TV.

Here are six tips from the USA.gov blog to help you sort through all the pitches:

• A free mobile app can help you check any product or vehicle, new or used, to see if it’s been recalled or has safety complaints. Keep up with recent recalls of things you may have around the house or check on that great thrift shop bargain before you buy. Use the Recalls.gov app and mobile site to search by product type and brand name

• When your wallet is lost or stolen, there are eight steps you need to take right away. A thief won’t waste time trying to cash in on your loss. Learn now so you’ll be ready to protect your identity and your credit as soon as your wallet goes missing.

• A new federal agency is working to eliminate deceptive and unfair lending practices. Established in 2010, the Consumer Financial Protection Bureau works to make sure providers of mortgages, credit cards, student loans, and banking services market their products honestly, clearly, and legally. Learn more about their work, and their simple tips for protecting yourself.

• Scammers see tough economic times as an opportunity. Job scams are abundant, as swindlers “guarantee” you an unadvertised job, try to get you to pay for their placement services, or tell you that you can get rich by working from home. Learn more about financial scams and saving money at the Federal Trade Commission’s Consumer.gov.

• There’s a formula for complaining effectively. If you’re not satisfied with a product or service, use the Consumer Action Handbook’s sample complaint letter to let the company know where they went wrong and how you want them to fix it. To get the free Handbook or its Spanish counterpart, la Guía del Consumidor, visit the consumer protection sections of USA.gov or GobiernoUSA.gov.

You can get consumer questions answered during a special National Consumer Protection Week online Q&A session.

USA.gov will connect you with government resources to answer your questions during a live event on Wednesday, March 6 from 2 p.m. to 3 p.m. EST. You can find out about the latest scams, how to protect your family from identity theft, and more. 

To participate, submit your questions during the event on Twitter using the hashtag #NCPW.

Copyright 2013, Rita R. Robison, Consumer Specialist

Watch out as Valentine’s Day approaches for online romance scammers

Valentine’s Day is a day for romance, but it can also be a time for scammers to take advantage of those looking for love online

The Better Business Bureau is urging consumers be careful before letting their hearts – and their money – get stolen.

Don’t be a catfish.

In a documentary “Catfish” and a MTV reality show with the same name, a catfish is someone who pretends to be someone they’re not by using Facebook or other social media to create false identities, especially to pursue deceptive online romances.

The BBB and Western Union offer consumers tips on how to avoid relationship scams.

Be on your guard

Only send money to people you have met in person. Be cautious with people you meet online, even if you correspond with them via e-mail or phone. Be wary of anyone who asks you to leave the dating website immediately to continue your conversation through e-mail or instant messaging, as this allows fraudsters to carry out their scam without the dating site having a record of your encounter.

Be cautious if someone claims to be local but is currently out of the country

Fraudsters could be operating from overseas, making it more difficult for authorities to track them down. Never give your banking information to people that you have not met in person or businesses that you don’t know.

Always verify every emergency situation before sending money

Fraudsters can trick their victims in a variety of ways. Sometimes they instantly express feelings of love and other times they lead their victims on for a while. No matter how much your relationship might seem like the real thing, you should be suspicious if someone starts asking for information such as credit card, bank, or government ID numbers or requesting you to send money.

For more information on scams, check out the BBB Scam Stopper at www.bbb.org/scam.

Copyright 2013, Rita R. Robison, Consumer Specialist