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By Tom Levine
In August, 2004, the Federal Trade Commission issued their findings of a
recent study, which showed that nearly 25 million adults were victims of
fraud.
Now, most importantly, If you are a victim of fraud, please do not feel like
you did anything wrong. It happens to all of us at one point or another, as
the FTC’s study clearly shows. Everyone likes a magic trick, and none of us
are fully capable of noticing the con-artists’ slight of hand. So, if you’re
a victim, take a deep breath. You’re normal.
But, there’s an old saying that goes something like this: Fool me once, shame
on you…Fool me twice, shame on me!”
Here are 5 KILLER STEPS to protect yourself from Credit Card SCAMS! NATIONAL
NO-CALL REGISTRY. TELEPHONE SOLICITATION 1-900 NUMBERS. ANNUAL FEES, INTEREST
RATES, ETC. THE UNITED STATES FEDERAL TRADE COMMISSION
1. NATIONAL NO-CALL REGISTRY:
There’s nothing more annoying then those credit card offers that you get over
the phone. I don’t know about you, but the last thing I want to be doing,
while having dinner with my 1 year old daughter and my beautiful wife, is to
be annoyed by phone calls from solicitors that just want to make money off me.
Legitimate or not, these calls are a nuisance. If you’re like me, and you
would rather live without dealing with these calls, then go do this:
The FTC has created the National Do-NOT-CALL registry. Go find out more
information about it. The website is: http://www.donotcall.gov (http://www.
donotcall.gov)
If it makes sense, complete the online form.
Take a deep breath, and relax. Within 30 days, the list will start working for
you. I can personally attest that, while the solicitations have not stopped
completely, they have significantly, significantly decreased.
Join the FTC No-CALL-Registry, and enjoy a reduction in telephone solicitation
phone calls.
2. TELEPHONE SOLICITATION:
Believe it or not, the vast majority of lenders out there are legitimate.
Also, believe it or not, a lot of these lenders utilize telemarketing as a
method of reaching out to potential customers.
But beware of a wolf in sheep’s clothing. Legitimate Lenders never ask for a
processing fee in order to complete your application (this does not include
appraisals during a real estate transaction in Escrow…We are discussing
credit cards here).
Keep your personal information to yourself! Don’t give out bank information,
credit card numbers, social security numbers, etc., to someone you don’t
know, on a telephone call. Use your common sense.
If you don’t have the offer in hand, or confirmed in writing, then don’t pay.
This is fraud. Who is this person on the phone anyway? Get their phone
number, their address, their federal tax ID number, and then tell them you’ll
call back. If they’re legitimate, they’ll give it to you. If you question
them, then I say trust your instincts. You’re probably right on target.
Who is this on the phone? Don’t trust people you haven’t had a chance to get
to know. Don’t let one enticing offer on a phone call, be your guide...
3. 1-900 NUMBERS:
A 1-900 number is, of course, a phone number that charges the caller per
minute for making the call. Whether it’s a 1-900 number, or a future
manifestation of the same type of telephone service, be wary of doing
business this way.
The most common Credit Card SCAM, in all of its different forms, is called an
“ADVANCE FEE LOAD SCAM”. Typically, you will find these in the classified
section of your local newspapers and trade magazines, and unfortunately,
you’ll also see them floating around the internet.
In a nutshell, the perpetrator will guarantee you a loan, but you have to pay
them an upfront fee first. The fee can range from $100 to several hundred
dollars. The charges can be extracted using telephone services like 1-900
numbers. Beware of courier services, and transactions that avoid the US
Postal service, often conducted so as to avoid detection. The scam is that
once the fake company has your money, they disappear from the planet, leaving
you a victim of their con. You are out money, and no credit card.
Now lets’ not confuse Advance Fee Load Scam artists with legitimate lenders
and institutions. I can attest that there are real companies out there,
trying to help you to get the credit, loans, and consumer debt services that
you need. I believe in many of these services, and I believe in the
convenience and power of the internet. However, use your common sense in all
your business transactions in life, and that includes credit. Never give
someone money without getting anything back in return. Never trust someone
that you don’t know. Never get enticed into a deal that’s too good to be true.
Use your common sense, and don’t fall prey to the con artists slight of hand,
such as the Advance Fee Load Scam...
4. ANNUAL FEES, INTEREST RATES, ETC.:
Credit Card Scams come in all different shapes and sizes. Many of them are,
arguably, not scams at all, but let’s just call them credit card offers
involving consumer unfriendly terms.
Read the fine-line. Every Credit Card Offer must provide the Consumer with
written documentation on the terms of the offer.
Check the Annual Fee, the Interest Rates, the Cash Advance Fees, the Late
Fees, and all other terms of the offer. c) Make sure you know what you are
getting. Some offers are for secured cards, some are for unsecured cards, and
some offers are for shopping portals online and offline (Like a department
store card). So, while none of these are scams, by definition, it is
important that you fully understand the terms of the credit card offer that
you are agreeing to.
Be a responsible consumer, and read the terms and conditions of your credit
card offer...
5. THE UNITED STATES FEDERAL TRADE COMMISSION::
The best place to go for direct consumer information, protection, and remedy,
is the United States Federal Trade Commission...
The FTC website is: http://www.ftc.gov (http://www.ftc.gov)
The FTC can provide you with TONS of free information about Credit Cards, and
other consumer related concerns. They can help you learn more about what to
avoid, how to be a smarter consumer, and what to do if you believe that you
are a victim of fraud, and what your remedies may be.
The FTC is there to help...
SUMMARY:
Use the No-Call Registry to cut down telephone solicitations in your home and
places of business. While many legitimate lenders utilize telemarketing, be
careful. Don’t give out personal information to people you don’t know, don’t
pay up-front processing fees over the phone, and get everything in writing.
Consider yourself an advised consumer on “Advanced Fee Load” Scams, and look
out for the signs, when these scams regrettably make their way to you. Read
the terms of the offers that you are considering, and utilize the FTC website
for trusted information, resources, and all related materials on consumer
credit card issues.
We’ve enjoyed providing this information to you, and we wish you the best of
luck in your pursuits. Remember to always seek out good advice from those you
trust, and never turn your back on your own common sense.
Publisher’s Directions: This article may be freely distributed so long as the
copyright, author’s information, disclaimer, and an active link (where
possible) are included.
Disclaimer: Statements and opinions expressed in the articles, reviews and
other materials herein are those of the authors. While every care has been
taken in the compilation of this information and every attempt made to
present up-to-date and accurate information, we cannot guarantee that
inaccuracies will not occur. The author will not be held responsible for any
claim, loss, damage or inconvenience caused as a result of any information
within these pages or any information accessed through this site.
Tom Levine provides a solid, common sense approach to solving problems and
answering questions relating to consumer loan products. His website seeks to
provide free online resources for the consumer, including rate-watch, tips
and articles, financial communication, news, and links to products and
services. You can check out Tom`s website here: http://loan-resources.org
(http://loan-resources.org), or you can email Tom at info@loan-resources.org
(mailto:info@loan-resources.org).
Copyright 2004, by Loan-Resources.Org (http://Loan-Resources.Org)
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