The Survive and Thrive Boomer Guide

Watch out for phony offers for work-at-home jobs targeting college students

Students at colleges and universities are being targeted by a work-at-home employment scam through emails that appear to be sent from a college or university. The scammers obtain personal information from the student while posing as a college or university representative. They convince students to cash counterfeit checks and send them the money.

“Students who fall victim to this scam could face serious repercussions to their financial stability and credit record,” said Florida Attorney General Ashley Moody. “I am urging all students currently enrolled at Florida colleges and universities to take extra precaution when receiving online job offers.”

The scheme involves scammers sending online job advertisements offering college students an administrative position, tricking the student into believing the email is from a college or university representative by using an email address ending in “.edu.” As part of the scheme, the student receives counterfeit checks in the mail, or by email, and is instructed to deposit the checks into a personal checking account. The scammers then direct the student to withdraw the money and make a payment necessary for the job. Often, after the student sends the money, the checks are confirmed to be fraudulent by the bank.

What to buy and not buy at Memorial Day sales 2020

Memorial Day sales have begun, even though stores aren’t operating like they usually do due to the coronavirus pandemic. Shop online for safety or pick up items you’ve ordered from local retail stores.

Many states have opened retail stores, including Georgia, Florida, Texas, and Iowa. However, I wouldn’t take the risk to go shopping for clothes or other items yet. About a dozen states – Alabama, Arizona, Kentucky, Maryland, Minnesota, North Dakota, Texas, Wisconsin, and Mississippi – have opened retail stores even though their coronavirus cases are going up or have plateaued rather than dropping. See this New York Times article on the reopening plans of states.

DealNews.com suggests consumers look for Memorial Day deals on:

Nation’s largest subprime auto lender agrees to pay more than $550 million for deceptive auto loan practices

Santander Consumer USA Inc. agreed Tuesday to pay about $550 million or more to consumers nationwide to resolve charges that its subprime lending practices exposed them to high levels of risk with auto loans that had a high likelihood of default. Santander also agreed to make changes to its terms and conditions for extending credit.

“Santander defrauded desperate consumers by placing them into auto loans the company knew these customers could never afford to pay, resulting in defaults and negative ratings on consumers’ credit reports,” said New York Attorney General Letitia James.

In March 2015, a coalition of 34 attorneys general opened an investigation into Santander — the largest subprime auto financing company in the nation – after receiving an increase in consumer complaints on subprime auto loans. The coalition alleged that Santander – through use of credit scoring models that could forecast the risk of borrower default – knew that certain groups of consumers would have a high likelihood of default.

What to buy and not buy in May

Depending on where you live, you may or may not be able to go out and shop during the month of May. However, even if you’re still staying at home you can shop from home.

While it’s important to continue to limit your shopping to essential items, because you don’t put a burden on employees who are still required to go to work to handle your order, there are important things going on in May, such as buying birthday presents for May birthdays and Mother’s Day. I mention that because my birthday is in May, and I’d like to get a present to cheer myself up.

Here are tips from DealNews for May shopping:

Star Wars items

Star Wars Day is May 4 — as in "May the Fourth Be With You" — and companies often celebrate by offering deals on different kinds of merchandise.

Even though May 4 is my birthday, I’m not longing for a Star Wars t-shirt.

Mother’s Day

Traditional gifts such as flowers and jewelry will likely jump in price right before Mother's Day, which is May 10 this year.

Progressive Leasing to pay $175 million to FTC to settle charges it deceived consumers about prices

Progressive Leasing will pay $175 million to settle Federal Trade Commission charges it misled consumers about the price of items purchased through its plans. The company markets rent-to-own payment plans at more than 24,000 retail locations – including stores such as Best Buy, Lowe’s, Big Lot’s, and Kay Jewelers – in 46 states and the District of Columbia.

Consumers who visited retailers to buy items such as furniture, jewelry, or cellphones were often told that Progressive’s payment plans were “same as cash” or “no interest” – leading consumers to believe they wouldn’t be charged more than an item’s sticker price, according to the FTC’s lawsuit filed Monday.

Instead, the lawsuit alleges, consumers paid more than the sticker price, and often paid about twice the sticker price if they made all scheduled payments under the plans. When consumers were presented with the terms of Progressive’s offers, they were shown the “cash price” of the item, as well as the cost of their initial payment and each periodic payment.

Tips for delaying mortgage payments in the era of coronavirus

If you’re unable to make your mortgage payments due to the coronavirus pandemic, you could lose your home to foreclosure. Federal lenders and some private lenders are offering borrowers temporary help, such as stopping or delaying foreclosure or modifying the mortgage. However, these measures aren’t available for everyone.

If you need help, research the options available. The Federal Trade Commission offers these tips for navigating the process.

Learn about new relief for federally backed mortgage

The Coronavirus Aid, Relief, and Economic Security Act or CARES offers two protections for some borrowers. To be eligible, you need to have a federally backed mortgage and be having financial hardship due to the coronavirus. The options include:

FTC bans three defendants from selling student debt relief and telemarketing

Three defendants in a student loan debt relief scheme have been ordered to pay millions to resolve Federal Trade Commission charges that they deceived consumers by promising to reduce or eliminate their student loan debt.

A federal court found that Brian Colombana, Impetus Enterprise Inc., and Fig Tree & Co. deceptively marketed student loan debt relief services, tricked consumers into paying illegal upfront fees, and failed to deliver the promised debt relief.

The court entered judgments against the defendants of nearly $11 million. They’re banned from selling debt relief products and services and telemarketing.

Federal financial agency charges Fifth Third Bank with opening unauthorized accounts and signing consumers up for unapproved products and services

Photo: Ed! (Photography)

The Consumer Financial Protection Bureau filed a lawsuit in Illinois Monday against Fifth Third Bank, one of the largest banks in the Midwest.

The CFPB alleges that for several years Fifth Third, without consumers’ knowledge or consent: opened deposit and credit-card accounts in consumers’ names; transferred funds from consumers’ existing accounts to new, improperly opened accounts; enrolled consumers in unauthorized online-banking services; and activated unauthorized lines of credit on consumers’ accounts.

The lawsuit claims that Fifth Third violated the Consumer Financial Protection Act’s prohibition against unfair and abusive acts or practices. It also charges the bank with violating the Truth in Lending Act and the Truth in Savings Act.

The CFPB alleges that for years and continuing through at least 2016, Fifth Third used:

California funeral homes that hide prices are charging more than homes that disclose prices, study shows

California funeral homes that use a legal loophole to hide prices tend to charge more for basic services than funeral homes that prominently disclose prices, a study showed. For example:

• For the basic services fee, the $1,835 median price of price hiders was 36 percent higher than the $1,348 median price of price posters.
• For direct cremation, the $1,695 median price of price hiders was 31 percent higher than the $1,295 median price of price posters.
• For immediate burial without a casket, the $2,595 median price of price hiders was 37 percent higher than the $1,900 median price of price posters.

“Many funeral homes charging high prices use a legal loophole to hide these prices from the public,” said Josh Slocum, executive director for the Funeral Consumers Alliance. “The California legislature should close this loophole so that consumers can comparison shop among all funeral homes.”

Wells Fargo to pay $3 billion for fake account scandal

Wells Fargo has agreed to pay $3 billion to resolve civil and criminal charges related to its practice between 2002 and 2016 of pressuring employees to meet unrealistic sales goals that led to millions of accounts being created under false pretenses or without consent, the U.S. Department of Justice announced Monday. 

As part of the agreement with the department and the Securities and Exchange Commission, Wells Fargo admitted that it collected millions of dollars in fees and interest to which it wasn't entitled, harmed the credit ratings of some customers, and unlawfully misused customers’ sensitive personal information, including customers' identification.

“When companies cheat to compete, they harm customers and other competitors,” said Michael D. Granston, deputy assistant attorney general for the department’s Civil Division. “This settlement holds Wells Fargo accountable for tolerating fraudulent conduct that is remarkable both for its duration and scope, and for its blatant disregard of customer’s private information.”