Homeowners beware. The Consumer Federation of America has released its 2011 Consumer Complaint Survey Report, and one of the top five fastest growing consumer complaints is home improvement scams, which remains No. 3 on the top 10 list after automobile and debt-related scams. Other real estate problems (timeshares, retirement communities) are new to the top 10 list this year.
Think you’re too smart to be a victim? The report includes eye-opening anecdotes of scams from among the 38 state, county and city agencies in 22 states that contributed to the report, with tips on how to avoid being scammed. They recovered more than $147 million on behalf of wronged consumers last year alone. So if you have a problem, don’t be shy about calling one of the consumer protection agencies listed on the Federal Citizen Information Center’s Consumer Action website.
Homeowners beware. The Consumer Federation of America has released its 2011 Consumer Complaint Survey Report, and one of the top five fastest growing consumer complaints is home improvement scams, which remains No. 3 on the top 10 list after automobile and debt-related scams. Other real estate problems (timeshares, retirement communities) are new to the top 10 list this year.
Think you’re too smart to be a victim? The report includes eye-opening anecdotes of scams from among the 38 state, county and city agencies in 22 states that contributed to the report, with tips on how to avoid being scammed. They recovered more than $147 million on behalf of wronged consumers last year alone. So if you have a problem, don’t be shy about calling one of the consumer protection agencies listed on the Federal Citizen Information Center’s Consumer Action website.
Home security alarm scams
A 95-year-old Florida woman was convinced to sign a 5-year alarm system contract, although she already had an alarm system with another company. The Hillsborough County Consumer Protection Agency intervened; the alarm company canceled the $3,300 contract and refunded the money the woman had already paid.
A 95-year-old Florida woman was convinced to sign a 5-year alarm system contract, although she already had an alarm system with another company. The Hillsborough County Consumer Protection Agency intervened; the alarm company canceled the $3,300 contract and refunded the money the woman had already paid.
Advice: Under federal law you have the right to cancel door-to-door purchases of $25 or more within three business days. If you’re not given notice of this right, the cancellation period continues.
Home furnishings never delivered
The Somerset County Division of Consumer Protection received 21 complaints from consumers who had paid more than $60,000 altogether at a New Jersey furniture store where the owner embezzled the money and never delivered the furniture. The business filed for bankruptcy offering little recompense for the consumers.
The Somerset County Division of Consumer Protection received 21 complaints from consumers who had paid more than $60,000 altogether at a New Jersey furniture store where the owner embezzled the money and never delivered the furniture. The business filed for bankruptcy offering little recompense for the consumers.
Advice: Pay with a credit card, which gives you the right to dispute the charges if the goods never arrive. Debit cards don’t necessarily offer this protection.
Retirement community fees
When a Pennsylvania woman moved into an assisted living facility, she paid an upfront fee of $170,100 with the assurance that 85 percent would be refunded if she moved out, but when she moved out, the facility said she wouldn’t get a refund until someone else bought her unit. The Bucks County Consumer Protection, Weights & Measures Office intervened, and she got back $168,644. The office found that in some cases, former residents’ units were being used as models, holding up refunds.
When a Pennsylvania woman moved into an assisted living facility, she paid an upfront fee of $170,100 with the assurance that 85 percent would be refunded if she moved out, but when she moved out, the facility said she wouldn’t get a refund until someone else bought her unit. The Bucks County Consumer Protection, Weights & Measures Office intervened, and she got back $168,644. The office found that in some cases, former residents’ units were being used as models, holding up refunds.
Advice: Review the assisted living or retirement community contract carefully, including how the entry fee is handled — before you sign it.
Timeshare troubles
The Louisiana Attorney General’s office is working on a multi-state action to get restitution and cancel timeshare contracts for consumers against Festiva, a timeshare company based in North Carolina but operating out of New Orleans. Consumers complained that they never received promised “prizes” and that “free” cruises ended up costing hundreds of dollars in fees. Consumer advocates are also reigning in folks who prey on people who already have timeshares, pressuring them to pay thousands of dollars to resell their unwanted timeshares, and yet another group that offers to recover fees that consumers have paid to timeshare resellers who have gotten no results. They take a fee and the consumer never hears from them again. An Ohio woman who paid $10,000 to timeshare reseller and resale recovery fee service got help from the Summit County Office Of Consumer Affairs to recover $3,000.
The Louisiana Attorney General’s office is working on a multi-state action to get restitution and cancel timeshare contracts for consumers against Festiva, a timeshare company based in North Carolina but operating out of New Orleans. Consumers complained that they never received promised “prizes” and that “free” cruises ended up costing hundreds of dollars in fees. Consumer advocates are also reigning in folks who prey on people who already have timeshares, pressuring them to pay thousands of dollars to resell their unwanted timeshares, and yet another group that offers to recover fees that consumers have paid to timeshare resellers who have gotten no results. They take a fee and the consumer never hears from them again. An Ohio woman who paid $10,000 to timeshare reseller and resale recovery fee service got help from the Summit County Office Of Consumer Affairs to recover $3,000.
Advice: Don’t be pressured into buying a timeshare especially if the salesman says you have to decide immediately. Got a timeshare and want out? Talk to the company that manages the timeshare or a licensed realtor.
Rental rip-offs
The Orange County (Florida) Consumer Fraud Unit found scammers posing as owners of foreclosed properties, advertising the properties for rent and taking deposits of $2,500 on average from would-be tenants.
The Orange County (Florida) Consumer Fraud Unit found scammers posing as owners of foreclosed properties, advertising the properties for rent and taking deposits of $2,500 on average from would-be tenants.
Advice: Rent through a licensed realtor, or check county records (a call to the tax assessor works) to make sure you’re dealing with the property owner.
For property at the Lake of the Ozarks,contact the Spouses Selling Houses team at lakeozarkforsale.com. Until next time! Ebbie :)
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