Archive for the ‘FTC Updates’ category

Do Not Call List Huge Success

July 29th, 2010

It’s Fast, Free to Register a Number, and Registrations Never Expire

The Federal Trade Commission today announced that phone numbers on the national Do Not Call Registry now exceed 200 million, and that signing up for the Registry to prevent unwanted telemarketing calls is fast, free, and easy.

The Do Not Call Registry empowers consumers to take charge of the commercial telemarketing calls they get at home. The FTC created the Registry in 2003 to make it easier and more efficient for consumers to protect their privacy and stop unwanted telemarketing calls. Consumers can register online at www.donotcall.gov or call toll-free, 1-888-382-1222 (TTY 1-866-290-4236), from the number they wish to register. Once consumers have registered their phone number, they never need to re-register. Also, they can use the Do Not Call website (https://www.donotcall.gov/) to verify that their phone number is still on the Registry if they move or if their phone is temporarily disconnected.

Filing a Complaint

Consumers should file a complaint with the FTC if they receive an unwanted telemarketing call after their number has been on the Registry for 31 days. They also should file a complaint if they get a call that uses a recorded message instead of a live person (commonly known as a “robocall”) whether or not their number is on the Registry, if they have not agreed in writing to receive such calls.

Even if a consumer’s phone number is registered, charities, political organizations, and telephone surveyors are still permitted to call. Companies with which consumers have done business within the last 18 months may also continue to call, unless consumers have asked them to stop calling. Debt collectors may also continue to call consumers, whether their number is on the Registry or not. For more information about consumers’ rights when it comes to debt collection calls, go to: http://www.ftc.gov/bcp/edu/microsites/moneymatters/dealing-with-debt-collection.shtml.

Enforcement

Since 2003, the FTC has brought more than 60 complaints alleging violations of the Registry rules, with the largest settlement resulting in a $5.3 million penalty. A list of all Do Not Call enforcement actions from 2003 through 2010 can be found at: http://www.ftc.gov/bcp/edu/microsites/donotcall/mediacenter.html.

Cell Phones and the DNC Registry

The Do Not Call Registry accepts registrations from both cell phones and land lines. Consumers can place their cell phone number on the Do Not Call Registry to notify marketers that they do not want to receive unsolicited telemarketing calls, but federal regulations already prohibit most telemarketing targeted at cell phones. A consumer alert with more information can be found at: http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt184.shtm.

Privacy and Security

Federal law requires the FTC to tell consumers how the agency collects, uses, shares, and protects their personal information – including phone numbers on the Do Not Call Registry. Federal law also limits how the FTC can use consumers’ personal information. Protecting the privacy and security of consumers’ personal information is very important to the agency. Please read the notice at the following link to understand what the FTC does with the personal information it collects both online and offline: http://www.ftc.gov/ftc/privacy.shtm.

To learn more about the Do Not Call Registry and the rules that enforce it, visit the FTC’s website at www.donotcall.gov or the FCC at www.fcc.gov.

The Red Flags Rule for Fraud & Identity Theft

June 1st, 2010

Because of changes to the Fair Credit Reporting Act -FCRA and the enactment of the Fair and Accurate Credit Transactions Act (FACTA), more businesses are being held responsible for the safety of your financial information. Identity theft and fraud are two of the biggest financial crimes that we consumers face. The Federal Trade Commission and Congress have demanded that business who deal with our personal information follow more stringent guidelines to protect us from fraud and identity theft.

The Federal Trade Commission is making the act of businesses complying as simple as possible and have created a Red Flag Resource Web Site to help businesses comply and educate its employees.

Some of the tools provided by the FTC are DIY workbooks for small risk businesses which walks you through complying and articles that businesses can publish for clients, colleagues and future customers.

Six of those resources to help businesses protect and manage customer information in the Red Flag Program are;

The Red Flags Rule: Are You Complying with New Requirements for Fighting Identity Theft?

The Red Flags Rule: Compliance Tips for Companies Offering Services In and Around the Home

Franchisors: Are You Complying with the Red Flags Rule’s New Requirements for Fighting Identity Theft?

The Red Flags Rule: What Health Care Providers Need to Know About Complying with New Requirements for Fighting Identity Theft

The Red Flags Rule: What Telecom Companies Need to Know About Complying with New Requirements for Fighting Identity Theft [PDF]

The Red Flags Rule: What Utility Companies Need to Know About Complying with New Requirements for Fighting Identity Theft

If you deal with businesses who have your personal information (and who doesn’t, really) then you should familiarize yourself with the FTCs Red Flag Rules. These rules aim at helping to minimize your risk and hold your creditors, hospitals, cable companies and financial institutions to a higher privacy standard.

The FTC has extended its deadline for businesses to comply with Red Flag until December 2010.

FTC & Senator to push Free Credit Report Offers for clearer disclosures

November 11th, 2009

freecreditreportThe Internet is littered with free credit report offers and most of them want to give you a free credit report but they don’t blatantly disclose that you are paying for a monthly service along with the free credit report.

The search term “Free Credit Report” is an expensive one on Google, with advertisers paying upwards of $14.00 per click to be number one in the advertisers section of  the search results. It’s big business and everyone wants a piece.

The Federal Trade Commission has long wanted these types of sites to provide more blatant disclosures to consumers as to exactly what they are paying for, but resistance stands forward and the consumers often don’t realize they are being charged after they get the free credit report.

senatorSenator Schumer has a very simple fix for this. He says give the consumer the free credit report first- without asking for their credit card. After they receive it completely free (as advertised) they can then opt in for the monitoring service at a monthly fee. 

What a concept!  This would certainly help with all the confusion and reduce the number of chargebacks the credit providers must deal with, however it will certainly decrease sales.

According to the New York Times the senator said;

If these companies want to say — or sing for that matter — that they are giving people free credit reports, then they can’t charge people $15 a month, simple as that,” Mr. Schumer said in the release. “For years, these companies have said with a smile that they will provide a free credit report -– even though the government already requires a credit report be provided for free every year -– and then suddenly, months later, consumers get a bill in the mail for their credit-monitoring services. My plan would finally bust up this scam and give consumers some honest choices.”

Annualcreditreport.com offers consumers a free credit report from all three bureaus once a year and yes, its really free. The FTC and the Senator think that should also be more obvious on the websites of credit providers so that consumers may make a wise choice. Perhaps more disclosures in bigger bolder font and obvious words like “with trial” should also be implemented.

If a person can use AnnualCreditreport.com for their free credit reports and a monitoring service like Lifelock if they so choose to, its much cheaper. The bottom line is you are paying for continual monitoring with most of these services and you may not need it. At least with Lifelock, you know exactly what you are paying for and there is no smoke and mirrors.

The senator is looking to introduce legislation to force these changes if the FTC is unable to get cooperation from the credit report providers.

Paying the Debts of a Deceased Relative: Who Is Responsible?

October 25th, 2009

After a relative dies, the last thing grieving family members may expect are calls from debt collectors asking them to pay their loved one’s outstanding debts. 

According to the Federal Trade Commission (FTC), the nation’s consumer protection agency, a surviving relative usually has no legal obligation to pay the debts of a family member who has died. In fact, the rights of surviving relatives are covered by the Fair Debt Collection Practices Act (FDCPA), which prohibits debt collectors from using abusive, unfair, or deceptive practices to collect from you.

Under the FDCPA, which is enforced by the FTC, a debt collector is someone who regularly collects debts owed to others. This includes collection agencies, lawyers who collect debts on a regular basis, and companies that buy delinquent debts and then try to collect them.

Here’s what the law has to say about who has responsibility for a dead relative’s debts.

Who is responsible for paying the debts of a relative who has died?
Generally, someone’s estate is responsible for paying their debts. But if there isn’t enough in the estate to cover the debts, they typically go unpaid.

Am I legally obligated to pay the debts of a deceased relative?
You usually don’t have a legal obligation to pay the debts of a deceased relative who was not your spouse. Even a spouse’s obligation to pay may be limited under state probate law. To determine whether you’re legally obligated to pay, talk to an attorney who is knowledgeable about this area of the law

What should I do if a debt collector contacts me about a debt of a relative who has died?
Give the debt collector the contact information of the decedent’s personal representative. That’s the person responsible for settling their affairs, including paying any outstanding debts from the estate. If there is a will, the personal representative is known as the executor; if there is no will, the personal representative is known as the administrator.  Don’t give any of your personal information, like your Social Security number, birth date, or financial account numbers to anyone unless you know who you’re dealing with. Some con artists may check obituaries and other legal notices, and then contact relatives of a deceased posing as debt collectors. These scam artists can use your personal information to help them commit identity theft or other types of fraud.

Do I have to speak with a debt collector who contacts me about the debts of a deceased relative?
No. But if you’re a decedent’s personal representative, or otherwise legally obligated to pay the debt, you may want to talk with the debt collector to see if you can resolve the matter.

Can I stop a debt collector from contacting me about the debts of a deceased relative?
Yes. If you decide that you don’t want a debt collector to contact you again, write a letter to the collector saying so. Then, make a copy of your letter, send the original by certified mail, and pay for a “return receipt” so you will be able to document what the collector received and when. Once the collector receives your letter, they may not contact you again, with two exceptions: a collector can contact you to tell you there will be no further contact and to let you know that they or the creditor plan to take a specific action, like filing a lawsuit. Remember that even though the collector is prohibited from contacting you again, they still may sue the estate of your relative or the legally responsible person to collect the debt.  (cease and desist letter information can be found here)

Can debt collectors tell anyone else about my dead relative’s debt?
Other than to get the personal representative’s location, a debt collector generally is not allowed to disclose your relative’s debt to anyone other than the deceased’s spouse, parent (if your relative is a minor child), or guardian.

We recommend that you visit the FTCs website for more information on filing a complaint if you feel you have been harassed or abused by a collection agency. On the home page simply click, file complaint.

Debt Settlements under fire

August 4th, 2009

The Federal Trade Commission is cracking down on debt negotiation firms. The process of settling debts for less than owed is coming under scrutiny just like credit repair firms. With these negotiators popping up all over the place and saturating the Internet, its easy to see why there is need for federal regulations.

Many of these so called debt settlement companies are collecting fees up front from consumers while there is still no promise of a settlement. The consumer can still be harassed by the collection agencies or creditor and further damage their credit rating.

Using a reliable firm is an affective way to get the most out of your settlement dollars and credit rating. Before you agree to work with a debt settlement company, be sure to check out their record with the Better Business Bureau and do a Google search of them to uncover reputation facts.

You need to be proactive in the settlement process and not just trust your debts to a stranger. You can read more about the proposed debt settlement enforcements here.

Accuracy of Credit Report Information and Allowing Direct Disputes

July 15th, 2009

Agencies Issue Final Rules on Accuracy of Credit Report Information and Allowing Direct Disputes

Basically what this change means is that even if you have ceased and desisted a collection agency, they must still answer your disputes and not claim that they cant because you have ceased them.

The Federal Trade Commission today announced final rules and guidelines that will promote the accuracy and integrity of information provided to credit reporting agencies (commonly called “credit bureaus”) and allow consumers to dispute inaccurate information about them directly with furnishers, the financial institutions and other entities that furnish the information to the credit reporting agencies.

Information in credit reports is used widely to determine a consumer’s eligibility for credit, employment, insurance and rental housing, and errors in a consumer’s report can result in denial of those benefits or higher costs.

The FTC is issuing these rules and guidelines with the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision (the Agencies) under section 312 of the Fair and Accurate Credit Transactions Act of 2003 (FACT Act), which amends the Fair Credit Reporting Act. The effective date for these final rules and guidelines is July 1, 2010.

The Accuracy and Integrity Guidelines and Rules

The Agencies have issued guidelines specifying the actions for furnishers to take to ensure the accuracy and integrity of the information they furnish to credit reporting agencies, as well as rules requiring each furnisher to establish reasonable policies and procedures for implementing the guidelines. For example, the guidelines provide that, under circumstances specified by the Agencies, furnishers should report certain additional information when necessary to keep information they report from creating a misleading impression about a consumer’s creditworthiness.

The guidelines specify one such circumstance – furnishers generally would need to include a consumer’s credit limit among the information they furnish to a credit reporting agency. The Agencies today are issuing an Advance Notice of Proposed Rulemaking to identify other possible information that furnishers should report, such as the date the account was opened.

The Direct Dispute Rules and FDCPA Advisory Opinion

The Agencies also have issued final rules requiring furnishers in most cases to investigate disputes that consumers submit directly to them regarding the accuracy of information that the furnishers reported to a credit reporting agency.

Previously, the law encouraged consumers to submit their disputes through a credit reporting agency, rather than directly to a furnisher. The final rules add an additional avenue for consumers to dispute possible credit report inaccuracies, but do not remove or change consumers’ existing right to file a dispute through a credit reporting agency.

In an action related to the direct dispute rule, the Commission is issuing an advisory opinion concluding that a debt collector does not violate the Fair Debt Collection Practices Act by responding to a direct dispute via a communication whose sole purpose is to comply with the direct dispute rule by stating either the results of the investigation or the collector’s belief that the communication is frivolous or irrelevant.

Section 805(c) of the Act provides that, if a consumer has notified a debt collector in writing to stop communicating with the consumer, the collector must stop communicating with the consumer about the debt. The advisory opinion clarifies that, even if a consumer has asked a debt collector to stop communicating about a debt, the debt collector must still respond to the consumer’s direct dispute, as required by the new rules.

The final rules and guidelines, which will be published soon in the Federal Register, are attached. The Commission vote to issue the rules and guidelines was 4-0.

New FTC Web Site Helps Consumers Cope With Tough Economic Times

April 1st, 2009

Provides Advice on Debt, Employment, and Avoiding Scams.

The Federal Trade Commission, the nation’s consumer protection agency, has a new Web site at ftc.gov/MoneyMatters for people dealing with debt; struggling to find a job; or trying to create a budget, save, and spend wisely during these difficult times.

Money Matters offers short, practical tips, videos, and links to reliable resources for more information on topics like credit repair, debt collection, job-hunting and jobs scams, vehicle repossession, managing mortgage payments, and foreclosure rescue scams.

To learn more, go to www.ftc.gov/MoneyMatters

Money Matters: Tips from the Federal Trade Commission

FTC Charges Seven Credit Repair Companies with Deceiving Consumers

March 21st, 2009

When are credit fixers’ going to learn that you CANNOT guarantee to fix someones credit and you cant charge money up front for work you havnt performed yet? Is the reward really worth the risk?

We’ve been pushing DIY credit repair education since 1995 and can only hope we’ve helped thousands of consumers avoid these credit repair scams.

The Federal Trade Commission has charged seven related companies with violating federal law by falsely promising to remove negative information from consumers’ credit reports, even information that is accurate and current, and by charging an up-front fee and failing to provide written disclosures. The agency seeks to make them stop the violations and pay restitution to consumers.

According to the FTC, the defendants charge consumers up to $2,000, including $300 in advance, promising to improve credit scores by removing information such as late payments, charge-offs, collections, inquiries, delinquencies, judgments, and accounts discharged in bankruptcy. Their promotions include an ad on a third-party Web site stating, “100% Guarantee to raise your credit score!” Transcripts from telephone calls with consumers include statements such as, “I can’t tell you much because I’ll be giving you my trade secrets, but I can definitely guarantee that we’ll take care of anything that’s derogatory on her credit report. It’s all legal.”

In addition to facing deceptive marketing charges under the FTC Act, the defendants are charged with violating the Credit Repair Organizations Act by misrepresenting their services; charging in advance for credit repair services; and failing to provide consumers with written contracts and other materials that contain written disclosures required by law or deviating from the required wording for the disclosures.

The defendants are United Credit Adjusters Inc., doing business as United Credit Adjustors and UCA; United Credit Adjustors Inc., d/b/a United Credit Adjusters and UCA; United Counseling Association Inc., d/b/a UCA; Bankruptcy Masters Corp., National Bankruptcy Services Corp., Federal Debt Solutions Ltd., United Money Tree Inc., and Ahron E. Henoch, Ezra Rishty, and Gerald Serino, also known as Jerry Serino. The Commission vote to authorize staff to file the complaint was 4-0. The complaint was filed in the U.S. District Court for the District of New Jersey.

Recognizing a Credit Repair Scam
Everyday, companies target consumers who have poor credit histories with promises to clean up their credit report so they can get a car loan, a home mortgage, insurance, or even a job once they pay them a fee for the service. The truth is, these companies can’t deliver an improved credit report for you using the tactics they promote. It’s illegal: No one can remove accurate negative information from your credit report. So after you pay them hundreds or thousands of dollars in fees, you’re left with the same credit report and someone else has your money.

If you see a credit repair offer, here’s how to tell if the company behind it is up to no good:

The company wants you to pay for credit repair services before they provide any services. Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed the services they have promised.

The company doesn’t tell you your rights and what you can do for yourself for free.

The company recommends that you do not contact any of the three major national credit reporting companies directly.

The company tells you they can get rid of most or all the negative credit information in your credit report, even if that information is accurate and current.

The company suggests that you try to invent a “new” credit identity — and then, a new credit report — by applying for an Employer Identification Number to use instead of your Social Security number.

The company advises you to dispute all the information in your credit report, regardless of its accuracy or timeliness.

If you follow illegal advice and commit fraud, you may find yourself in legal hot water, too: It’s a federal crime to lie on a loan or credit application, to misrepresent your Social Security number, and to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses. You could be charged and prosecuted for mail or wire fraud if you use the mail, telephone, or Internet to apply for credit and provide false information.

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