Protect YourselfProtect Your Future

michigan.gov/seniorbrigade

Attorney General Bill Schuette

www.michigan.gov/seniorbrigade

Dear Michigan Senior,

As your Attorney General, I have heard countless stories of financial abuse against members of our senior population, ranging from sweepstakes scams to shady offers of home medical equipment and everything in between. Fast-talking telemarketers, phony charities, fly-by-night home repair contractors, and unscrupulous investment “advisors” are but a few examples of the many varieties of criminal predators who target seniors.

My policy is to prosecute companies and individuals that commit fraud against seniors, and many charges have been brought. But in order to prevent criminals from getting away with fraud, I need your help. Knowledge of how scams operate and vigilance in scrutinizing requests for money or personal information are the keys to stopping criminals before they make off with someone’s savings or commit a fraud in someone else’s name.

This Guide highlights many of the most common scams aimed at seniors. While criminals pitch their scams in many different forms, this Guide will help you to spot the common warning signs and empower you to protect yourself and your loved ones. This booklet also provides a variety of other information I hope you will find of value. This includes tips on protecting your personal information and reducing your exposure to identity theft, including directions for getting your name off unwanted telemarketing and junk mail lists and for exercising your right to receive free annual credit reports. The Guide also gives you advice on reviewing offers for living trusts, burial and funeral contracts, home improvements, investment products, and travel services.

The information and advice in this Guide is supplemented by other free publications of interest to consumers. You can view our consumer alerts online by visiting our website, www.michigan.gov/ag or by calling my Consumer Protection Division, toll-free, at 1-877-765-8388.

I urge you to read this Guide carefully - and to contact my office if you suspect a scam. Your report to my office may help put a crook behind bars.

Sincerely,

Bill SchuetteAttorney General

Consumer Scams – Aware and Avoid!

1. General Consumer Scams •AFewCommonScams •Sweepstakes •HomeImprovementScams •TravelScams

2. Financial and Investment Scams •CommonInvestmentScams •InvestmentFraud •FinancialExploitation •HomeEquityFraud •PredatoryLending

3. Health Scams •HomeMedicalEquipmentScams •MiracleCures

4. Wise Charitable Giving

5. Estate Planning •Pre-NeedBurialandFuneralContracts •LivingTrusts

6. Identity Theft •IDTheft-TipstoReduceYourRisk •HowtoReduceUnwantedTelemarketingCallsandJunkMail •FreeAnnualCreditReports–OrderYoursToday

7. Michigan’s New Scanner Law •The2011ShoppingReformandModernizationAct

Appendix A – Helpful Resources

Table of Contents

State of MichiganDepartment of Attorney General

Bill SchuetteAttorney General

www.michigan.gov/seniorbrigade

Dear Michigan Senior,

As your Attorney General, I have heard countless stories of financial abuse against members of our senior population, ranging from sweepstakes scams to shady offers of home medical equipment and everything in between. Fast-talking telemarketers, phony charities, fly-by-night home repair contractors, and unscrupulous investment “advisors” are but a few examples of the many varieties of criminal predators who target seniors.

My policy is to prosecute companies and individuals that commit fraud against seniors, and many charges have been brought. But in order to prevent criminals from getting away with fraud, I need your help. Knowledge of how scams operate and vigilance in scrutinizing requests for money or personal information are the keys to stopping criminals before they make off with someone’s savings or commit a fraud in someone else’s name.

This Guide highlights many of the most common scams aimed at seniors. While criminals pitch their scams in many different forms, this Guide will help you to spot the common warning signs and empower you to protect yourself and your loved ones. This booklet also provides a variety of other information I hope you will find of value. This includes tips on protecting your personal information and reducing your exposure to identity theft, including directions for getting your name off unwanted telemarketing and junk mail lists and for exercising your right to receive free annual credit reports. The Guide also gives you advice on reviewing offers for living trusts, burial and funeral contracts, home improvements, investment products, and travel services. You can also learn how my office may assist you with medical insurance problems.

The information and advice in this Guide is supplemented by other free publications of interest to consumers. You can view our consumer alerts online by visiting our website, www.michigan.gov/ag or by calling my Consumer Protection Division, toll-free, at 1-877-765-8388.

I urge you to read this Guide carefully - and to contact my office if you suspect a scam. Your report to my office may help put a crook behind bars.

Sincerely,

Bill SchuetteAttorney General

Consumer Scams – Aware and Avoid!

1. General Consumer Scams •AFewCommonScams •Sweepstakes •HomeImprovementScams •TravelScams

2. Financial and Investment Scams •CommonInvestmentScams •InvestmentFraud •FinancialExploitation •HomeEquityFraud •PredatoryLending

3. Health Scams •HomeMedicalEquipmentScams •MiracleCures

4. Wise Charitable Giving

5. Estate Planning •Pre-NeedBurialandFuneralContracts •LivingTrusts

6. Identity Theft •IDTheft-TipstoReduceYourRisk •HowtoReduceUnwantedTelemarketingCallsandJunkMail •FreeAnnualCreditReports–OrderYoursToday

7. Michigan’s New Scanner Law •The2011ShoppingReformandModernizationAct

Appendix A – Helpful Resources

Table of Contents

State of MichiganDepartment of Attorney General

Bill SchuetteAttorney General

www.michigan.gov/seniorbrigadewww.michigan.gov/seniorbrigade

1. General Consumer Scams

A Few Common ScamsFlorence got a phone call from a man claiming to be an officer of her bank. He said he needed to verify her account information in order to install new security measures. Florence got her checkbook and read her account number to him. A few days later, when she was unable to withdraw money from her account, she discovered that all the money had been withdrawn. The caller had no connection to her bank at all, and her bank told her it never calls customers asking for “verification” of personal or financial information.

Florencefellforoneoftheoldestscamsaround.Conartistshavesneakywaysoftryingtopartyoufromyourmoney,butmostofthesearevariationsof“successful”scamsthathavebeenusedbefore.Herearejustafewexamplesofprevalentscamsyoumayencounter:

The Bank “Investigation”:Inthisscam,acallerposesasabankexaminer,FBIagent,orpolicedetectiveandrequestsyourhelpinaninvestigation.Thecallerasksyoutogotothebankandwithdrawsomemoneyandgiveittothephonyofficialtouseinsettingatrapforacriminal,assuringyouthatthemoneywillberedepositedintoyouraccount.Butthescammerandyourmoneyarenevertobeseenagain.

Work-at-Home Offers:Companiesadvertiseopportunitiesforyoutomakehundreds,ifnotthousands,ofdollarsaweekworkingathome.The“work”couldbejustaboutanything–cashingchecks,stuffingenvelopesforadvertisers,preparingmailinglists,makingcraftprojects,orsendingoutmedicalbills.Inthecheckcashingscenario,youmayunwittinglybecashingchecksyoudidn’tknowwerebogus–untiloneofyourchecksisreturnedfor“insufficientfunds”inyouraccount.Most

work-at-homescamsrequireastiffup-frontfee–potentiallyhundredsofdollars–forsupplies,software,oran“instructionalkit”thatwillleadthewaytoacomfortableincome.Buttheinformationorsuppliesyoureceive(ifany)areworthless,andyour“investment”isdownthedrain.Ifyouhaveanyluckreachingthecompany,you’retold“it’syourownfault”ifyoudidn’tmakeanymoney.

Youcanprotectyourselfagainstbogusbusinessopportunities.MichiganlawrequiressellersofbusinessopportunitiestoregisterwiththeAttorneyGeneral’soffice.Therearealsofederalrulesgoverningthetypesofdisclosuresthatmustbeprovidedtoconsumersthinkingaboutbuyingabusinessopportunity.TheAttorneyGeneralurgesconsumerstoresearchanypotentialbusiness“opportunities”thoroughlybeforeinvesting.StartbycheckingtoseeifthecompanypeddlingthebusinessopportunityisregisteredinMichiganbycallingtheAttorneyGeneral’sofficeat1-877-765-8388.Formoreinformationonbusinessopportunitiesandwork-at-homescams,visittheFederalTradeCommission’swebsiteatwww.ftc.gov.

Credit Card “Fraud Protection” Scams:Atelephonecallerpretendingtorepresentyourcreditcardcompanyadvisesyoutoenrollinacreditcardfraudprotectionprogram.Thecallertellsyouthatcomputerhackerscouldaccessyourcreditcardnumberandrunupthousandsofdollarsinboguschargesinyourname–andwarnsyouthatyouwouldbeliableforallcharges.Thisisalie.Underfederallaw,consumerswho

promptly reportunauthorizedchargesontheircreditcardsarenotliableformorethan$50.Ifyouagreedtoenrollinthe“protection”program,yourenrollmentfeeandperhapsaccountinformationhavelandedwithascammer.

Advance-Fee Loan and Credit Card Scams:Ane-mail,telemarketer,newspaperad,orTVcommercial“guarantees”thatconsumerscangetaloanoracreditcard“nomatterhowbad”theircredithistorymaybe.Butconsumerswhorespondareadvisedtheymustpayaheftyfee upfront–perhapsasmuchas$500–onlytofindoutlaterthatdespitetheguarantee,youdidn’tqualifyfortheloanorcreditcardafterall.Youareunabletogetintouchwiththecompanyandareoutthemoneyyoupaid.

International Lottery Scams:Youreceiveane-mail,letter,orphonecallfromabusinessofferingtobuyticketsforyouinaforeignlottery,perhapsinSpain,Canada,orAustralia.Theseoffersarealways scams.ItisagainstU.S.lawtobuyorsellticketstoforeignlotteriesbyphoneormail.Consumerswhofallforthesescamssometimesget“suckered”twoorthreetimes.Ifyouagreetosendmoneytobuytickets,youmaygetacalllatersayingthatyouhavewonalargejackpot,andneedtosendmoremoneytopaytaxesonyourwinningsortopayasmallfeeforcurrencyconversion.Ofcourse,thelotteryticketswereneverevenpurchased,andthereisnojackpot.

Foreign Dignitary Schemes:Alsoreferredtoinnewsreportsasthe“NigerianLetterScam,”thisfraudstartswithaletter,fax,ore-mailfromsomeonewhoclaimstobeaforeigngovernmentexecutive,prince,diplomat,ordoctor.Thispersonsaysheneedstotransferalargeamountofmoney,perhapsmillionsofdollars,totheUnitedStatesinordertoprotectthemoneyfrominsurgentsorcorruptgovernmentofficials.Theletterofferstopayyouapercentagecommissionifyoupermitthepersontotransfer

themoneyintoyouraccount.Careful!Youareatriskoflosingall themoneyinyourbankaccountifyougivetheconartistyouraccountinformation.IfyoureceivesuchanofferthroughtheU.S.mail,reportittothepostalinspector.E-mailoffersshouldsimplybedeleted.

Phishing:Youreceiveane-mailmessagethatappearstobefromafamiliarentity(i.e.,yourbank,governmentagency,creditcardcompany)askingyoutoprovidepersonalinformationsuchasyourSocialSecuritynumber(SSN),bankaccountnumber,passwordand/orpersonalidentificationnumber(PIN),orcreditcardnumber.Thisonlineformofidentitytheftisknownasphishingand,likeotherformsofIDtheft,canleadtosubstantialfinancialloss,ruinedcredit,preventionofaccountaccess,andthecreationofbogusaccountsinyourname.Topreventthisfromhappeningtoyou,deletethee-mailwithoutopeninganyattachmentsorclickingonanylinksinthemessage,andmakesuretoreadthe“IdentityTheft”chapterofthisguide.

What do these diverse examples have in common?Theyallcarrywarningsignsthatafraudmaybeintheworks.Keepyourguardupwhenyouencounterthesethreekeysignsofapotentialfraud:

• Youarecontactedbyastranger;

• Youareoffereda“great”deal;

• Youmustactrightaway;and

• Youareaskedtopaymoneyordisclosesensitivepersonalorfinancialinformationbeforereceivinganybenefit.

Whenyouarecontactedunderthesecircumstances,justsay“NO.”Andremember–NEVERprovidepersonalinformationtoANYONEwhocallsyouonthephoneorsendsanunsolicitede-mailrequest.

CONSUMER SCAMS – AWARE AND AVOID!

21

www.michigan.gov/seniorbrigadewww.michigan.gov/seniorbrigade

1. General Consumer Scams

A Few Common ScamsFlorence got a phone call from a man claiming to be an officer of her bank. He said he needed to verify her account information in order to install new security measures. Florence got her checkbook and read her account number to him. A few days later, when she was unable to withdraw money from her account, she discovered that all the money had been withdrawn. The caller had no connection to her bank at all, and her bank told her it never calls customers asking for “verification” of personal or financial information.

Florencefellforoneoftheoldestscamsaround.Conartistshavesneakywaysoftryingtopartyoufromyourmoney,butmostofthesearevariationsof“successful”scamsthathavebeenusedbefore.Herearejustafewexamplesofprevalentscamsyoumayencounter:

The Bank “Investigation”:Inthisscam,acallerposesasabankexaminer,FBIagent,orpolicedetectiveandrequestsyourhelpinaninvestigation.Thecallerasksyoutogotothebankandwithdrawsomemoneyandgiveittothephonyofficialtouseinsettingatrapforacriminal,assuringyouthatthemoneywillberedepositedintoyouraccount.Butthescammerandyourmoneyarenevertobeseenagain.

Work-at-Home Offers:Companiesadvertiseopportunitiesforyoutomakehundreds,ifnotthousands,ofdollarsaweekworkingathome.The“work”couldbejustaboutanything–cashingchecks,stuffingenvelopesforadvertisers,preparingmailinglists,makingcraftprojects,orsendingoutmedicalbills.Inthecheckcashingscenario,youmayunwittinglybecashingchecksyoudidn’tknowwerebogus–untiloneofyourchecksisreturnedfor“insufficientfunds”inyouraccount.Most

work-at-homescamsrequireastiffup-frontfee–potentiallyhundredsofdollars–forsupplies,software,oran“instructionalkit”thatwillleadthewaytoacomfortableincome.Buttheinformationorsuppliesyoureceive(ifany)areworthless,andyour“investment”isdownthedrain.Ifyouhaveanyluckreachingthecompany,you’retold“it’syourownfault”ifyoudidn’tmakeanymoney.

Youcanprotectyourselfagainstbogusbusinessopportunities.MichiganlawrequiressellersofbusinessopportunitiestoregisterwiththeAttorneyGeneral’soffice.Therearealsofederalrulesgoverningthetypesofdisclosuresthatmustbeprovidedtoconsumersthinkingaboutbuyingabusinessopportunity.TheAttorneyGeneralurgesconsumerstoresearchanypotentialbusiness“opportunities”thoroughlybeforeinvesting.StartbycheckingtoseeifthecompanypeddlingthebusinessopportunityisregisteredinMichiganbycallingtheAttorneyGeneral’sofficeat1-877-765-8388.Formoreinformationonbusinessopportunitiesandwork-at-homescams,visittheFederalTradeCommission’swebsiteatwww.ftc.gov.

Credit Card “Fraud Protection” Scams:Atelephonecallerpretendingtorepresentyourcreditcardcompanyadvisesyoutoenrollinacreditcardfraudprotectionprogram.Thecallertellsyouthatcomputerhackerscouldaccessyourcreditcardnumberandrunupthousandsofdollarsinboguschargesinyourname–andwarnsyouthatyouwouldbeliableforallcharges.Thisisalie.Underfederallaw,consumerswho

promptly reportunauthorizedchargesontheircreditcardsarenotliableformorethan$50.Ifyouagreedtoenrollinthe“protection”program,yourenrollmentfeeandperhapsaccountinformationhavelandedwithascammer.

Advance-Fee Loan and Credit Card Scams:Ane-mail,telemarketer,newspaperad,orTVcommercial“guarantees”thatconsumerscangetaloanoracreditcard“nomatterhowbad”theircredithistorymaybe.Butconsumerswhorespondareadvisedtheymustpayaheftyfee upfront–perhapsasmuchas$500–onlytofindoutlaterthatdespitetheguarantee,youdidn’tqualifyfortheloanorcreditcardafterall.Youareunabletogetintouchwiththecompanyandareoutthemoneyyoupaid.

International Lottery Scams:Youreceiveane-mail,letter,orphonecallfromabusinessofferingtobuyticketsforyouinaforeignlottery,perhapsinSpain,Canada,orAustralia.Theseoffersarealways scams.ItisagainstU.S.lawtobuyorsellticketstoforeignlotteriesbyphoneormail.Consumerswhofallforthesescamssometimesget“suckered”twoorthreetimes.Ifyouagreetosendmoneytobuytickets,youmaygetacalllatersayingthatyouhavewonalargejackpot,andneedtosendmoremoneytopaytaxesonyourwinningsortopayasmallfeeforcurrencyconversion.Ofcourse,thelotteryticketswereneverevenpurchased,andthereisnojackpot.

Foreign Dignitary Schemes:Alsoreferredtoinnewsreportsasthe“NigerianLetterScam,”thisfraudstartswithaletter,fax,ore-mailfromsomeonewhoclaimstobeaforeigngovernmentexecutive,prince,diplomat,ordoctor.Thispersonsaysheneedstotransferalargeamountofmoney,perhapsmillionsofdollars,totheUnitedStatesinordertoprotectthemoneyfrominsurgentsorcorruptgovernmentofficials.Theletterofferstopayyouapercentagecommissionifyoupermitthepersontotransfer

themoneyintoyouraccount.Careful!Youareatriskoflosingall themoneyinyourbankaccountifyougivetheconartistyouraccountinformation.IfyoureceivesuchanofferthroughtheU.S.mail,reportittothepostalinspector.E-mailoffersshouldsimplybedeleted.

Phishing:Youreceiveane-mailmessagethatappearstobefromafamiliarentity(i.e.,yourbank,governmentagency,creditcardcompany)askingyoutoprovidepersonalinformationsuchasyourSocialSecuritynumber(SSN),bankaccountnumber,passwordand/orpersonalidentificationnumber(PIN),orcreditcardnumber.Thisonlineformofidentitytheftisknownasphishingand,likeotherformsofIDtheft,canleadtosubstantialfinancialloss,ruinedcredit,preventionofaccountaccess,andthecreationofbogusaccountsinyourname.Topreventthisfromhappeningtoyou,deletethee-mailwithoutopeninganyattachmentsorclickingonanylinksinthemessage,andmakesuretoreadthe“IdentityTheft”chapterofthisguide.

What do these diverse examples have in common?Theyallcarrywarningsignsthatafraudmaybeintheworks.Keepyourguardupwhenyouencounterthesethreekeysignsofapotentialfraud:

• Youarecontactedbyastranger;

• Youareoffereda“great”deal;

• Youmustactrightaway;and

• Youareaskedtopaymoneyordisclosesensitivepersonalorfinancialinformationbeforereceivinganybenefit.

Whenyouarecontactedunderthesecircumstances,justsay“NO.”Andremember–NEVERprovidepersonalinformationtoANYONEwhocallsyouonthephoneorsendsanunsolicitede-mailrequest.

CONSUMER SCAMS – AWARE AND AVOID!

21

www.michigan.gov/seniorbrigadewww.michigan.gov/seniorbrigade

Sweepstakes

Soon after Irvin sent in a sweepstakes entry, he began to receive many other sweepstakes mailings that implied he was close to being a grand prize winner. Thinking he could increase his odds of winning, he began buying books, magazines, and other products through these sweepstakes. He spent $1,500 but never won anything.

Beforeyourespondtoasweepstakesmailingortelephonecallthatsaysyouaretheir“guaranteedwinner,”ask:What’sinitforthem?

Thetruthis,sweepstakesarenottryingtogive youmoney-they’retryingtoget yourmoney.Theonlyaimoftheirmailingsandtelephonecallsistogetyoutobuyproducts.Fraudulentprizepromotionswanttotrickyouintopayingfora“processingfee”ortopaybycallinga“900”number.Toooften,seniorsonfixedincomesareluredbythehopeofwinningasweepstakesintobuyingproductstheydon’tneedorpayingexcessivefees.Somepeopleevenlosetheirlifesavingsbecausetheybecomeaddictedtoenteringsweepstakes,orderingmerchandiseinthemistakenbeliefthatitwillincreasetheirchancesofwinning.Theycan’tstopbecausetheydon’twanttolosewhatthey’ve“invested.”Theycontinuetoreceivemailingsandphonecallsthatsuggesttheyareclosetowinning.In

• Don’tbepressuredintobuyinganythingthroughasweepstakes.Asweepstakesmusttellyouthat“Nopurchaseisnecessary.”Bylaw,youcanenterandhaveanequalchanceofwinningwithoutbuyinganything.

• Beskepticalifacallorlettertellsyouthatyouarealmost“surelythewinner”orthatyouare“veryclosetowinning.”Thetruthisthatthousandsofpeoplearegettingthesamephonecallandmail.Yourchancesofwinningareverysmall.

• Neversendmoneytopayfor“taxes,”“shippingcosts,”or“processingfees.”PrizewinnerspaytaxestotheInternalRevenueService,nottosweepstakespromoters.

• Beawarethatarequesttosendmoneybycourierorovernightdeliveryisasignofascam.

• Bewaryofsweepstakesthathaveanamesimilarto,butnotquitethesame,asawell-knownnationalcharity.

Home Improvement Scams

Aretha noticed a leak in her living room ceiling and called a plumber. The plumber told her that all her bathroom pipes were broken and needed to be replaced, at a cost of $1,500. He said she risked an electrical fire if she didn’t have the work done. She sought a second opinion. The other plumber found that the problem was only some failed caulking around the bathtub.

Homerepairfraudisoftenaimedatseniorcitizens.Unscrupulousrepairpersonssometimesusescaretacticstopressurepeopletohaveunnecessary,expensiverepairsmade.Theyoverchargeforshoddywork,ortakemoneyandthennevershowuptodothework.

Oneofthemostcommonkindsofhomerepairfraudinvolvesoffersfromtransientworkcrews.Strangersknockonyourdoorandsaythey’vebeenworkinginyourneighborhoodandhavesomeextramaterialleft.Theyoffertosealyourdrivewayorfixyourroofforadiscount,buttheytakeyourmoneyandthendisappear.

Anotherscaminvolvesstrangerswhoknockonyourdoorandoffertodoafreeinspectionofyourfurnace,chimney,ordrinkingwater.Onceinside,theypretendtofindaserioushealthorsafetyproblemrequiringexpensiverepairs.Evenworse,theymayonlybetryingtogetinsideyourhometostealmoneyorvaluablesfromyou.

Becautiouswhentheydemandcashpaymentorindicatetheofferisonlygoodforthatday.Don’tletyourselfbepressured.

It’sbesttosaynothankstotheseunsolicitedoffers,andtonotopenyourdoortostrangers.Instead,getrecommendationsforhomeimprovementcompaniesfromsatisfiedfriendsand neighbors.

• Shoparoundforacontractor,gettingpriceestimatesfromseveral.Whenrequestinganestimate,askifthereisacharge.Asmartshopperwouldalsogettwoormorereferencesoneachcontractor.

•Getreferencestoseeiftheworkwasdoneproperly,onschedule,andattheagreedprice.

• Insistonadetailedcontract.Thecontractshouldinclude:aspecificdescriptionoftheworktobedone,materials,laborcost,timetable,paymentschedule,start/endingdates,namesofsubcontractors,warrantyagreements,andcleanupandfinancingarrangements.

• Checktoseeifthecontractorhasbeendisciplinedorifthelicensehasbeensuspendedorrevoked.BuildersandcontractorsarelicensedbytheLicensingDivisionoftheBureauofCommercialServices,MichiganDepartmentofLicensing&RegulatoryAffairs.Youmay visittheLicensingDivision’swebsite,at www.michigan.gov/lara, andclickonthelinksfor“BureauofCommercialServices”andthen“LicensingServices.”YoucanalsoreachtheLicensingDivisionat1-517-373-8376.

TheBureau’shomepageforResidentialBuilders,MaintenanceandAlterationContractorsprovidesgeneralinformationonissuesrelatingtobuilders’licenses,includingadditionaltipsforconsumers.

ConsumersmayvisittheBureauofCommercialServices’websitetoverifycurrentlicensestatusandcheckforpriordisciplinaryaction.Ifpossible,usethebuilder’slicensenumberaswellasthenameofthebuilderandthebusinessname.

Decisionsissuedinresponsetoformalcomplaintsarealsoaccessibleonline.

Ifyouwouldliketofileacomplaintagainstabuilder,orchecktoseeiftherearecomplaintsaboutaspecificbuilder,youmayalsocalltheLicensingServicesDivisionat1-517-373-8376orwriteto:

Bureau of Commercial Services P.O. Box 30018 Lansing, MI 48909

Remember:Alwayscheckahomeimprovementcontractor’slicenseandcomplainthistorybycallingtheAttorneyGeneral’sConsumerProtectionDivision,at1-877-765-8388,andtheBureauofCommercialServices,at1-517-373-8376.

reality,theirchancesofwinningalegitimatesweepstakesareverysmall,andtherearemanyfraudulentsweepstakesthateitherdon’tawardanyprizes,oroffergiftsthatturnouttobealmostworthless.

43

www.michigan.gov/seniorbrigadewww.michigan.gov/seniorbrigade

Sweepstakes

Soon after Irvin sent in a sweepstakes entry, he began to receive many other sweepstakes mailings that implied he was close to being a grand prize winner. Thinking he could increase his odds of winning, he began buying books, magazines, and other products through these sweepstakes. He spent $1,500 but never won anything.

Beforeyourespondtoasweepstakesmailingortelephonecallthatsaysyouaretheir“guaranteedwinner,”ask:What’sinitforthem?

Thetruthis,sweepstakesarenottryingtogive youmoney-they’retryingtoget yourmoney.Theonlyaimoftheirmailingsandtelephonecallsistogetyoutobuyproducts.Fraudulentprizepromotionswanttotrickyouintopayingfora“processingfee”ortopaybycallinga“900”number.Toooften,seniorsonfixedincomesareluredbythehopeofwinningasweepstakesintobuyingproductstheydon’tneedorpayingexcessivefees.Somepeopleevenlosetheirlifesavingsbecausetheybecomeaddictedtoenteringsweepstakes,orderingmerchandiseinthemistakenbeliefthatitwillincreasetheirchancesofwinning.Theycan’tstopbecausetheydon’twanttolosewhatthey’ve“invested.”Theycontinuetoreceivemailingsandphonecallsthatsuggesttheyareclosetowinning.In

• Don’tbepressuredintobuyinganythingthroughasweepstakes.Asweepstakesmusttellyouthat“Nopurchaseisnecessary.”Bylaw,youcanenterandhaveanequalchanceofwinningwithoutbuyinganything.

• Beskepticalifacallorlettertellsyouthatyouarealmost“surelythewinner”orthatyouare“veryclosetowinning.”Thetruthisthatthousandsofpeoplearegettingthesamephonecallandmail.Yourchancesofwinningareverysmall.

• Neversendmoneytopayfor“taxes,”“shippingcosts,”or“processingfees.”PrizewinnerspaytaxestotheInternalRevenueService,nottosweepstakespromoters.

• Beawarethatarequesttosendmoneybycourierorovernightdeliveryisasignofascam.

• Bewaryofsweepstakesthathaveanamesimilarto,butnotquitethesame,asawell-knownnationalcharity.

Home Improvement Scams

Aretha noticed a leak in her living room ceiling and called a plumber. The plumber told her that all her bathroom pipes were broken and needed to be replaced, at a cost of $1,500. He said she risked an electrical fire if she didn’t have the work done. She sought a second opinion. The other plumber found that the problem was only some failed caulking around the bathtub.

Homerepairfraudisoftenaimedatseniorcitizens.Unscrupulousrepairpersonssometimesusescaretacticstopressurepeopletohaveunnecessary,expensiverepairsmade.Theyoverchargeforshoddywork,ortakemoneyandthennevershowuptodothework.

Oneofthemostcommonkindsofhomerepairfraudinvolvesoffersfromtransientworkcrews.Strangersknockonyourdoorandsaythey’vebeenworkinginyourneighborhoodandhavesomeextramaterialleft.Theyoffertosealyourdrivewayorfixyourroofforadiscount,buttheytakeyourmoneyandthendisappear.

Anotherscaminvolvesstrangerswhoknockonyourdoorandoffertodoafreeinspectionofyourfurnace,chimney,ordrinkingwater.Onceinside,theypretendtofindaserioushealthorsafetyproblemrequiringexpensiverepairs.Evenworse,theymayonlybetryingtogetinsideyourhometostealmoneyorvaluablesfromyou.

Becautiouswhentheydemandcashpaymentorindicatetheofferisonlygoodforthatday.Don’tletyourselfbepressured.

It’sbesttosaynothankstotheseunsolicitedoffers,andtonotopenyourdoortostrangers.Instead,getrecommendationsforhomeimprovementcompaniesfromsatisfiedfriendsand neighbors.

• Shoparoundforacontractor,gettingpriceestimatesfromseveral.Whenrequestinganestimate,askifthereisacharge.Asmartshopperwouldalsogettwoormorereferencesoneachcontractor.

•Getreferencestoseeiftheworkwasdoneproperly,onschedule,andattheagreedprice.

• Insistonadetailedcontract.Thecontractshouldinclude:aspecificdescriptionoftheworktobedone,materials,laborcost,timetable,paymentschedule,start/endingdates,namesofsubcontractors,warrantyagreements,andcleanupandfinancingarrangements.

• Checktoseeifthecontractorhasbeendisciplinedorifthelicensehasbeensuspendedorrevoked.BuildersandcontractorsarelicensedbytheLicensingDivisionoftheBureauofCommercialServices,MichiganDepartmentofLicensing&RegulatoryAffairs.Youmay visittheLicensingDivision’swebsite,at www.michigan.gov/lara, andclickonthelinksfor“BureauofCommercialServices”andthen“LicensingServices.”YoucanalsoreachtheLicensingDivisionat1-517-373-8376.

TheBureau’shomepageforResidentialBuilders,MaintenanceandAlterationContractorsprovidesgeneralinformationonissuesrelatingtobuilders’licenses,includingadditionaltipsforconsumers.

ConsumersmayvisittheBureauofCommercialServices’websitetoverifycurrentlicensestatusandcheckforpriordisciplinaryaction.Ifpossible,usethebuilder’slicensenumberaswellasthenameofthebuilderandthebusinessname.

Decisionsissuedinresponsetoformalcomplaintsarealsoaccessibleonline.

Ifyouwouldliketofileacomplaintagainstabuilder,orchecktoseeiftherearecomplaintsaboutaspecificbuilder,youmayalsocalltheLicensingServicesDivisionat1-517-373-8376orwriteto:

Bureau of Commercial Services P.O. Box 30018 Lansing, MI 48909

Remember:Alwayscheckahomeimprovementcontractor’slicenseandcomplainthistorybycallingtheAttorneyGeneral’sConsumerProtectionDivision,at1-877-765-8388,andtheBureauofCommercialServices,at1-517-373-8376.

reality,theirchancesofwinningalegitimatesweepstakesareverysmall,andtherearemanyfraudulentsweepstakesthateitherdon’tawardanyprizes,oroffergiftsthatturnouttobealmostworthless.

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www.michigan.gov/seniorbrigadewww.michigan.gov/seniorbrigade

Travel Scams

Hector and Sonia signed up to win a “free trip” at a local fair. A short time later, they received a phone call saying they had won the trip. To claim it, they had to attend a presentation about a travel club. The salesman said the club would let them stay at nice resorts year after year at very little cost, after they paid the initial membership fee. After a long, high-pressure sales talk, they agreed to join and wrote a check for $2,500. They quickly regretted it. Their free trip was a weekend stay at a run-down hotel in Las Vegas. They tried to use their membership to arrange a stay in Mexico, but the club never had availability there. A few months later, the club went out of business, taking all their money with it.

“Free trip”offersareoneofthemostcommonconsumerscams.Thefreetripisusuallyjustabaittogetconsumerstobuymembershipsinexpensivetimesharesortravelclubsorthetripisn’treallyfreeatall–youhavetopayalotoffeesandextracosts.Ifyoureceiveaphonecallorpostcardsayingyou’vewonavacation,beware.You’llprobablyhavetoattendasalespresentationortouracampgroundortimesharefacilitytoreceiveyourfreetrip.Thesalespeoplewillusehigh-pressuresalestacticstogetyoutopurchaseamembershiportimeshare.Youmayalsoreceiveoffersfrom“cardmill”companies.Theytellconsumersthatthecardswillhelpthemgainaccesstofreeorreducedtravel.

Manyconsumerswhosigncontractsatthesepresentationslaterregrettheirdecision.Theyfindouttoolatethattheclubismoreexpensivethantheythoughtbecauseofaddedfees,dues,andcosts.Someconsumerscan’tgetthedatesorlocationstheyrequested.Othersfindtheaccommodationstobeofpoorquality.Worstofall,someofthesecompaniesgooutofbusiness,takingalltheircustomers’pre-paidmembershipmoneywiththem.

• Beskepticalof“freetrip”offers.Gotoasalespresentationonlyifyouareinterestedinwhatthecompanyisselling.

• Nevermakeadecisiononthespot.Insistontakingthecontracthometostudy.Ifthebusinesswon’tallowthis,leave.

• Understandallthecosts.Whatisandisn’tincluded?Arethereextrafeesformaintenance,processing,dues,peakseason,upgrades,hotels,airlines,porttaxes,andmeals?

• Knowyourcancellationrights.UnderMichiganlaw,ifaconsumerisofferedaprizeormerchandisevaluedatmorethan$25inexchangeforattendingasalespromotionforgoods,services,ormemberships–suchasatravelclubmembership–thathaveavalueof$500ormore,theconsumermustbegivenwrittennoticethattheyhavethreebusinessdaysaftersigningtocancelthepurchaseagreementorcontract.However,usingyourrighttocancelisn’talwayseasy,sodon’tsignacontractunlessyou’resureaboutyourdecision.

• Alwaysthinktwicebeforepayingalotofmoneyinadvanceforafuturebenefit.Whatifyouinvestthousandsofdollarsandthetravelclubgoesoutofbusiness?It’shappenedtomanyMichiganseniors.

Asageneralrule,researchanytravelservicetomakesurethecompanyisestablishedandreliable,beforepayinganycostsorsigningdocuments.

Incredible Prices That Aren’tAdifferentkindoftravelscamoffersyouan“unbelievable”priceonavacation.Totakeadvantageoftheoffer,youhavetogiveyour

creditcardnumbertoholdareservation.Later,youfindoutthatinordertotakethevacationyouhavetopayalotmoreforallsortsoffees,upgrades,hoteltaxesandservicecharges.Infact,thewholepackagebecomessoexpensivethatyoudon’twanttoeventakethetrip.Ifyoudo,the“deluxe”accommodationsturnouttobe aprettyordinarymotel.

Beforeyouagreetopayanymoneyforabargaintravelpackage,asktohavewrittenmaterialthatdescribesallthetermsandconditionssenttoyou.Iftheywon’tsendit,turnitdown.

www.seniorbrigade.com

65

www.michigan.gov/seniorbrigadewww.michigan.gov/seniorbrigade

Travel Scams

Hector and Sonia signed up to win a “free trip” at a local fair. A short time later, they received a phone call saying they had won the trip. To claim it, they had to attend a presentation about a travel club. The salesman said the club would let them stay at nice resorts year after year at very little cost, after they paid the initial membership fee. After a long, high-pressure sales talk, they agreed to join and wrote a check for $2,500. They quickly regretted it. Their free trip was a weekend stay at a run-down hotel in Las Vegas. They tried to use their membership to arrange a stay in Mexico, but the club never had availability there. A few months later, the club went out of business, taking all their money with it.

“Free trip”offersareoneofthemostcommonconsumerscams.Thefreetripisusuallyjustabaittogetconsumerstobuymembershipsinexpensivetimesharesortravelclubsorthetripisn’treallyfreeatall–youhavetopayalotoffeesandextracosts.Ifyoureceiveaphonecallorpostcardsayingyou’vewonavacation,beware.You’llprobablyhavetoattendasalespresentationortouracampgroundortimesharefacilitytoreceiveyourfreetrip.Thesalespeoplewillusehigh-pressuresalestacticstogetyoutopurchaseamembershiportimeshare.Youmayalsoreceiveoffersfrom“cardmill”companies.Theytellconsumersthatthecardswillhelpthemgainaccesstofreeorreducedtravel.

Manyconsumerswhosigncontractsatthesepresentationslaterregrettheirdecision.Theyfindouttoolatethattheclubismoreexpensivethantheythoughtbecauseofaddedfees,dues,andcosts.Someconsumerscan’tgetthedatesorlocationstheyrequested.Othersfindtheaccommodationstobeofpoorquality.Worstofall,someofthesecompaniesgooutofbusiness,takingalltheircustomers’pre-paidmembershipmoneywiththem.

• Beskepticalof“freetrip”offers.Gotoasalespresentationonlyifyouareinterestedinwhatthecompanyisselling.

• Nevermakeadecisiononthespot.Insistontakingthecontracthometostudy.Ifthebusinesswon’tallowthis,leave.

• Understandallthecosts.Whatisandisn’tincluded?Arethereextrafeesformaintenance,processing,dues,peakseason,upgrades,hotels,airlines,porttaxes,andmeals?

• Knowyourcancellationrights.UnderMichiganlaw,ifaconsumerisofferedaprizeormerchandisevaluedatmorethan$25inexchangeforattendingasalespromotionforgoods,services,ormemberships–suchasatravelclubmembership–thathaveavalueof$500ormore,theconsumermustbegivenwrittennoticethattheyhavethreebusinessdaysaftersigningtocancelthepurchaseagreementorcontract.However,usingyourrighttocancelisn’talwayseasy,sodon’tsignacontractunlessyou’resureaboutyourdecision.

• Alwaysthinktwicebeforepayingalotofmoneyinadvanceforafuturebenefit.Whatifyouinvestthousandsofdollarsandthetravelclubgoesoutofbusiness?It’shappenedtomanyMichiganseniors.

Asageneralrule,researchanytravelservicetomakesurethecompanyisestablishedandreliable,beforepayinganycostsorsigningdocuments.

Incredible Prices That Aren’tAdifferentkindoftravelscamoffersyouan“unbelievable”priceonavacation.Totakeadvantageoftheoffer,youhavetogiveyour

creditcardnumbertoholdareservation.Later,youfindoutthatinordertotakethevacationyouhavetopayalotmoreforallsortsoffees,upgrades,hoteltaxes,andservicecharges.Infact,thewholepackagebecomessoexpensivethatyoudon’twanttoeventakethetrip.Ifyoudo,the“deluxe”accommodationsturnouttobe aprettyordinarymotel.

Beforeyouagreetopayanymoneyforabargaintravelpackage,asktohavewrittenmaterialthatdescribesallthetermsandconditionssenttoyou.Iftheywon’tsendit,turnitdown.

www.seniorbrigade.com

65

www.michigan.gov/seniorbrigadewww.michigan.gov/seniorbrigade

Common Investment Scams

Here is a list of popular investment scams:

1. “Free lunch” seminars. Oftenthepeoplegettingricharethoserunningtheseminar,makingmoneyfromthehighcommissionproductstheyselltoattendees.Theseseminarsaremarketedthroughnewspaper,radioandTVads,mass-mailedinvitations,andmasse-mails.There’sacertainconsistencytotheinvitationsfortheseevents:afreegourmetmeal,tipsonhowtoearnexcellentreturnsonyourinvestments,eliminatemarketrisks,growyourretirementfunds,andspousesareencouragedtoattend.

Thebaitformanyoftheseseminarsisthat“income”willbe“guaranteed”andsubstantiallyhigherthanthereturnssomeoneonafixedincomecanexpecttogetfromcertificatesofdeposit,moneymarketinvestments,orothertraditionalfinancialproducts.Oftenthespeakersattheseeventsuseimpressive-soundingbutsometimeshighlymisleadingtitlesandprofessionaldesignations.Manyofthesedesignationsimplythatwhoeverbearsthetitlehasaspecialexpertiseinaddressingthefinancialneedsofseniors.Oftenpromoterspushunsuitableproductsbasedonhighcommissionstheyreceivefromsellingtheseproducts.Forexample,variableandequityindexedannuitiesareoftenunsuitableforseniorcitizensbecausethoseproductsaregenerallylong-terminvestmentsthatlimitaccesstoinvestedfunds.Butsalesagentsstandtoearnhighcommissionsontheseinvestmentproductssotheydon’talwaysadheretothesuitabilitystandards–withdireconsequencesforseniors.Remember:Makesureyourinvestmentsmatchupwithyourage,yourneedforaccesstomoney,andyourrisktolerance.

2. Unlicensed individuals, suchaslifeinsuranceagents,sellingsecurities. Toverifythatapersonislicensedorregisteredtosellsecurities,calltheOfficeofFinancialandInsuranceRegulationat1-877-999-6442.Ifthepersonisnotregistered,don’tinvest.

3. Affinity group fraud. Manyscammersusetheirvictim’sreligiousorethnicidentitytogaintheirtrust–knowingthatit’shumannaturetotrustpeoplewhoarelikeyou–andthenstealtheirlifesavings.Bewary–nocommunityseemstobewithoutconartistswhoseektoexploitothersforfinancialgain.

4. Ponzi/pyramid schemes. Alwaysinstyle,theseswindlerspromisehighreturnstoinvestors,buttheonlypeoplewhoconsistentlymakemoneyarethepromoterswhosettheminmotion,usingmoneyfromnewinvestorstopaypreviousinvestors.Inevitably,theschemescollapse.They’recalledpyramidschemesbecausethepeopleontopneedtorecruitanimpossiblenumberofpeopleonthebottomtocontinuallygenerateprofitsforeveryone.Thus,onlythetoppeopleprofit,whiletheremainingpyramidpopulationlosemoney.PonzischemesarethelegacyofItalianimmigrantCharlesPonzi.Intheearly1900s,hetookinvestorsfor$10millionbypromising40percentreturnsfromarbitrageprofitsonInternationalPostalReplyCoupons.Rememberthatallinvestmentscomewithsomerisk.Nolegitimateinvestmentcanguarantee an outrageouslylargereturninashortamountoftime.TheoldadageringstruewithrespecttoPonzischemes–ifitsoundstoogoodtobetrue,especiallyinthiseconomy,itprobablyis.

5. Cash gifting schemes. Cashgiftingschemesarethequintessentialexampleofapyramidscheme,describedabove.Generally,thesegifting“circles,”“clubs,”or“groups”encourageparticipantstopayasubstantialentryfee(whichcanrangeanywherefrom$500to$5,000ormore).Thisentryfeewillguaranteetheparticipantsaplaceonachartofmembers.

Theparticipantswillmoveonthecharteverytimetheyrecruitmorepeopleintothe“circle”or“club.”Andoncetheparticipantmovesenoughonthechart,theyare“guaranteed”alargepayout.Giftingschemesoperateunderavarietyofnames,asconartiststhatstarttheseschemesareendlesslycreativeintheirquesttoconalotofpeopleoutofalotofmoney.Conartistsalsopromisethatpayoutsfromtheseschemesarenon-taxable“gifts.”TheIRSdisagrees–anypayoutreceivedfromacashgiftingschemeistaxableincome.Inaddition,participationinacashgiftingorotherpyramidschemeisillegalintheStateofMichigan.Ifyouareapproachedtoparticipateinacashgiftingscheme,notifyyourlocalpolicedepartmentorcountysheriff’soffice.

6. Promissory notes areshort-termdebtinstrumentsissuedbylittle-knownorsometimesnon-existentcompaniesthatpromisehighreturns-upwardsof15percentmonthly-withlittleornorisk.Thesenotesareoftensoldtoinvestorsbyindependentlifeinsuranceagents.

7. Internet fraud. ScammersusethewidereachandsupposedanonymityoftheInternettosellthinlytradedstocks,bogusoffshore“primebank”investments,andpyramidschemes.InvestorsshouldignoreanonymousfinancialadviceontheInternetandinchatrooms.

8. Payphone and ATM sales. Investorsleasedpayphonesforbetween$5,000and$7,000andwerepromisedannualreturnsofupto15percent.ThelargestoftheseinvestmentsappearedtobenothingbutPonzischemes.

9. “Callable” CDs. Thesehigher-yieldingcertificatesofdepositwon’tmaturefor10to20years,unlessthebank,nottheinvestor,“calls,”orredeems,them.RedeemingtheCDearlymayresultinlargelosses–upwardof25percentoftheoriginalinvestment.RegulatorssaysellersofcallableCDsoftendon’tadequatelydisclosetherisksandrestrictions.

10. Viatical settlements. Originatedasawaytohelpthegravelyillpaytheirbills,theseinterests

inthedeathbenefitsofterminallyillpatientsarealwaysriskyandsometimesfraudulent.Inalegitimateinvestment,theinsuredispaidapercentageofthedeathbenefitincashinexchangefortheinvestorgettingashareofthedeathbenefitwhentheinsureddies.Becauseofuncertaintiespredictingwhensomeonewilldie,theseinvestmentsareextremelyspeculative.Inamorerecenttwist,“seniorsettlements”–interestsinthedeathbenefitsofhealthyolderpeople–arenowbeingofferedtoinvestors.

11. Prime bank schemes. Scammerspromiseinvestorstriple-digitreturnsthroughaccesstotheinvestmentportfoliosoftheworld’selitebanks.Purveyorsoftheseschemesoftentargetconspiracytheorists,promisingaccesstothe“secret”investmentsusedbytheRothschildsorSaudiroyalty.Theinvestmentmaysoundgoodwhentheytellyouit’sguaranteedtoreaplargefinancialrewards.However,besuspiciouswhentheofferissaidtobelimitedtoonlyafewpeopleandisonlygoodforanimmediateresponse.

2. Financial & Investment Scams

87

www.michigan.gov/seniorbrigadewww.michigan.gov/seniorbrigade

Common Investment Scams

Here is a list of popular investment scams:

1. “Free lunch” seminars. Oftenthepeoplegettingricharethoserunningtheseminar,makingmoneyfromthehighcommissionproductstheyselltoattendees.Theseseminarsaremarketedthroughnewspaper,radioandTVads,mass-mailedinvitations,andmasse-mails.There’sacertainconsistencytotheinvitationsfortheseevents:afreegourmetmeal,tipsonhowtoearnexcellentreturnsonyourinvestments,eliminatemarketrisks,growyourretirementfunds,andspousesareencouragedtoattend.

Thebaitformanyoftheseseminarsisthat“income”willbe“guaranteed”andsubstantiallyhigherthanthereturnssomeoneonafixedincomecanexpecttogetfromcertificatesofdeposit,moneymarketinvestments,orothertraditionalfinancialproducts.Oftenthespeakersattheseeventsuseimpressive-soundingbutsometimeshighlymisleadingtitlesandprofessionaldesignations.Manyofthesedesignationsimplythatwhoeverbearsthetitlehasaspecialexpertiseinaddressingthefinancialneedsofseniors.Oftenpromoterspushunsuitableproductsbasedonhighcommissionstheyreceivefromsellingtheseproducts.Forexample,variableandequityindexedannuitiesareoftenunsuitableforseniorcitizensbecausethoseproductsaregenerallylong-terminvestmentsthatlimitaccesstoinvestedfunds.Butsalesagentsstandtoearnhighcommissionsontheseinvestmentproductssotheydon’talwaysadheretothesuitabilitystandards–withdireconsequencesforseniors.Remember:Makesureyourinvestmentsmatchupwithyourage,yourneedforaccesstomoney,andyourrisktolerance.

2. Unlicensed individuals, suchaslifeinsuranceagents,sellingsecurities. Toverifythatapersonislicensedorregisteredtosellsecurities,calltheOfficeofFinancialandInsuranceRegulationat1-877-999-6442.Ifthepersonisnotregistered,don’tinvest.

3. Affinity group fraud. Manyscammersusetheirvictim’sreligiousorethnicidentitytogaintheirtrust–knowingthatit’shumannaturetotrustpeoplewhoarelikeyou–andthenstealtheirlifesavings.Bewary–nocommunityseemstobewithoutconartistswhoseektoexploitothersforfinancialgain.

4. Ponzi/pyramid schemes. Alwaysinstyle,theseswindlerspromisehighreturnstoinvestors,buttheonlypeoplewhoconsistentlymakemoneyarethepromoterswhosettheminmotion,usingmoneyfromnewinvestorstopaypreviousinvestors.Inevitably,theschemescollapse.They’recalledpyramidschemesbecausethepeopleontopneedtorecruitanimpossiblenumberofpeopleonthebottomtocontinuallygenerateprofitsforeveryone.Thus,onlythetoppeopleprofit,whiletheremainingpyramidpopulationlosemoney.PonzischemesarethelegacyofItalianimmigrantCharlesPonzi.Intheearly1900s,hetookinvestorsfor$10millionbypromising40percentreturnsfromarbitrageprofitsonInternationalPostalReplyCoupons.Rememberthatallinvestmentscomewithsomerisk.Nolegitimateinvestmentcanguarantee an outrageouslylargereturninashortamountoftime.TheoldadageringstruewithrespecttoPonzischemes–ifitsoundstoogoodtobetrue,especiallyinthiseconomy,itprobablyis.

5. Cash gifting schemes. Cashgiftingschemesarethequintessentialexampleofapyramidscheme,describedabove.Generally,thesegifting“circles,”“clubs,”or“groups”encourageparticipantstopayasubstantialentryfee(whichcanrangeanywherefrom$500to$5,000ormore).Thisentryfeewillguaranteetheparticipantsaplaceonachartofmembers.

Theparticipantswillmoveonthecharteverytimetheyrecruitmorepeopleintothe“circle”or“club.”Andoncetheparticipantmovesenoughonthechart,theyare“guaranteed”alargepayout.Giftingschemesoperateunderavarietyofnames,asconartiststhatstarttheseschemesareendlesslycreativeintheirquesttoconalotofpeopleoutofalotofmoney.Conartistsalsopromisethatpayoutsfromtheseschemesarenon-taxable“gifts.”TheIRSdisagrees–anypayoutreceivedfromacashgiftingschemeistaxableincome.Inaddition,participationinacashgiftingorotherpyramidschemeisillegalintheStateofMichigan.Ifyouareapproachedtoparticipateinacashgiftingscheme,notifyyourlocalpolicedepartmentorcountysheriff’soffice.

6. Promissory notes areshort-termdebtinstrumentsissuedbylittle-knownorsometimesnon-existentcompaniesthatpromisehighreturns-upwardsof15percentmonthly-withlittleornorisk.Thesenotesareoftensoldtoinvestorsbyindependentlifeinsuranceagents.

7. Internet fraud. ScammersusethewidereachandsupposedanonymityoftheInternettosellthinlytradedstocks,bogusoffshore“primebank”investments,andpyramidschemes.InvestorsshouldignoreanonymousfinancialadviceontheInternetandinchatrooms.

8. Payphone and ATM sales. Investorsleasedpayphonesforbetween$5,000and$7,000andwerepromisedannualreturnsofupto15percent.ThelargestoftheseinvestmentsappearedtobenothingbutPonzischemes.

9. “Callable” CDs. Thesehigher-yieldingcertificatesofdepositwon’tmaturefor10to20years,unlessthebank,nottheinvestor,“calls,”orredeems,them.RedeemingtheCDearlymayresultinlargelosses–upwardof25percentoftheoriginalinvestment.RegulatorssaysellersofcallableCDsoftendon’tadequatelydisclosetherisksandrestrictions.

10. Viatical settlements. Originatedasawaytohelpthegravelyillpaytheirbills,theseinterests

inthedeathbenefitsofterminallyillpatientsarealwaysriskyandsometimesfraudulent.Inalegitimateinvestment,theinsuredispaidapercentageofthedeathbenefitincashinexchangefortheinvestorgettingashareofthedeathbenefitwhentheinsureddies.Becauseofuncertaintiespredictingwhensomeonewilldie,theseinvestmentsareextremelyspeculative.Inamorerecenttwist,“seniorsettlements”–interestsinthedeathbenefitsofhealthyolderpeople–arenowbeingofferedtoinvestors.

11. Prime bank schemes. Scammerspromiseinvestorstriple-digitreturnsthroughaccesstotheinvestmentportfoliosoftheworld’selitebanks.Purveyorsoftheseschemesoftentargetconspiracytheorists,promisingaccesstothe“secret”investmentsusedbytheRothschildsorSaudiroyalty.Theinvestmentmaysoundgoodwhentheytellyouit’sguaranteedtoreaplargefinancialrewards.However,besuspiciouswhentheofferissaidtobelimitedtoonlyafewpeopleandisonlygoodforanimmediateresponse.

2. Financial & Investment Scams

87

www.michigan.gov/seniorbrigadewww.michigan.gov/seniorbrigade

Investment Fraud

Hassan’s insurance agent told him about a unique investment opportunity – nine-month promissory notes that would yield an 18 percent annual rate of return. The notes were supposed to be secured by automobile titles. Hassan agreed to invest $20,000. When it was time for the note to mature, Hassan found out that all the money was gone. The agent had used the money for his personal expenses and to pay back other investors. It turned out that the agent was not even registered to sell securities.

Seniorsaretheprimarytargetofinvestmentconartists.Afast-talking“financialadvisor”canswindleanunsuspectinginvestoroutofhisorherlifesavingsinafewminutes.

Beware of strangers touting strange deals. Trustingstrangersisamistakeanyonecanmakewhenitcomestotheirpersonalfinances.Almostanyonecansoundniceorhonestonthetelephone.Say“no”toanyinvestmentprofessionalwhopressesyoutomakeanimmediatedecision,givingyounoopportunitytocheckoutthesalesperson,orfirm,andtheinvestmentopportunityitself.Bewareofanyonewhosuggestsinvestingyourmoneyintosomethingyoudon’tunderstandorwhourgesthatyouleaveeverythinginhisorherhands.

Do not feel indebted to someone who gives you “unsolicited” financial advice. Thispersonmaybetryingtogainyourtrustsoheorshecanearnfeesandcommissionsbyinvestingyourmoney,sometimesinunsuitableinvestments.Ifaninvestmentsounds“toogoodtobetrue,”itprobablyis.Someunscrupulouscompaniestrytoenticeinvestorswithpromisesofreturnsashighas25%,50%,oreven500%.Suchclaimsareusuallyfraudulent.Allinvestmentsinvolverisk.Conartistsknowthatyouworryabouteitheroutlivingyoursavingsorseeingallofyourfinancialresourcesvanishovernightastheresultofacatastrophicevent,suchascostlyhospitalization.

Take your time - don’t be rushed into investment decisions.Salespersonswhousehigh-pressuretacticstoforceaninvestorintoanimmediatedecisionarealmostalwayspitchingfrauds.Theydon’twant youtothinktoocarefullyorfindouttoomuchbecauseyoumayfigureoutthatit’sascam.

• Askhow,andbywhom,theinvestmentadvisorisbeingpaidinconnectionwiththeservicesorproductsbeingoffered.

• Insistonreceivingaprospectusorprintedofferingmaterials.READTHEM.Anyinvestmentworthmakingwillstillbeavailableafteryouhavehadtimetoreadaboutit.

• Don’tbelievetheage-oldliethatyouwilllosemoneyifyoudon’tgetinrightaway.Thetruthaboutsuchclaimsalmostalwaysturnsouttobethatyouwilllosemoneyifyoudo getin.

• Ifyouhavequestions,askyourattorney,accountant,andfinancialadvisertoexplaintheinvestment.

• Thedeathorhospitalizationofaspousehasmanysadconsequences-financialfraudshouldn’tbeoneofthem.Ifyoufindyourselfsuddenlyinchargeofyourownfinances,getthefactsbeforeyoumakeanydecisions.

Don’t throw good money after bad.Bewareof“reload”scams.Conartistsknowthepanicpeoplefeelafterasuddenfinancialloss.Theyknowthatit’sthebesttimetopromisetorecovertheoriginalfundsinanother“surething”scheme.Don’tfallforthesame(orasimilar)schemetwice.

Check out your broker or adviser.Confirmthatyourbrokerandfinancialadviserisregisteredandingoodstanding.ContacttheOfficeofFinancialandInsuranceRegulation,at1-877-999-6442,tocheckoutyourbrokeroradvisor.

Keep tabs on your investments.

• Bewarywhenafinancialplannersays“leaveeverythingtome,”or“theplanistoocomplicatedtotellyou.”Everythingshouldbeclearandexplainabletoyou.

•Monitortheactivityonyouraccount.Insistonreceivingregularstatements.

• Neverbeembarrassedorapologeticaboutaskingquestionsfortradingactivitythatlooksexcessiveorunauthorized.It’syourmoney,notyourbroker’s.

• Keepallofyourrecordsrelatingtoyourinvestments,includingnotesofconversationsyouhavewithbrokers,salespeople,financialadvisers,andthelike.

• Don’tcompoundthemistakeoftrustinganunscrupulousinvestmentprofessionalbyfailingtokeepaneyeontheprogressofyourinvestment.Insistonregularwrittenreports.Lookforsignsofexcessiveorunauthorizedtradingofyourfunds.

Don’t be afraid to complain. Ifyourbrokeroradvisorstallsorhesitateswhenyouwantallorpartoftheprincipalof,orprofitsfrom,yourinvestment,askthereasonfortheholdup.Youmayhaveuncoveredaquestionablepractice.

Ifyoususpectthatsomethingiswrongandtheexplanationsyoureceivearenotsatisfactory,calltheOfficeofFinancialandInsuranceRegulationat1-877-999-6442andfileacomplaint.Don’tletembarrassmentorfearkeepyoufromreportinginvestmentfraudorabuse.

Don’t agree to invest with someone just because you share the same religious, cultural or ethnic background. Unfortunately,conartistswilluseanymeanstogainavictim’strust.Thisincludesexploitingacommonbackground.Manyinvestorsthinkthatbecausetheymetapotentialadvisorinachurchortemple,orataculturalorganization,theadvisormustbetrustworthyandhavetheirbestinterestsinmind.Conartiststhenusethistrusttostealtheirclients’money.Don’ttrustsomeonewithyourmoneyjustbecauseyouhaveasimilarbackground.Askthesamequestionsanddemandthesameinformationthatyouwouldfromanyotheradvisor.

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www.michigan.gov/seniorbrigadewww.michigan.gov/seniorbrigade

Investment Fraud

Hassan’s insurance agent told him about a unique investment opportunity – nine-month promissory notes that would yield an 18 percent annual rate of return. The notes were supposed to be secured by automobile titles. Hassan agreed to invest $20,000. When it was time for the note to mature, Hassan found out that all the money was gone. The agent had used the money for his personal expenses and to pay back other investors. It turned out that the agent was not even registered to sell securities.

Seniorsaretheprimarytargetofinvestmentconartists.Afast-talking“financialadvisor”canswindleanunsuspectinginvestoroutofhisorherlifesavingsinafewminutes.

Beware of strangers touting strange deals. Trustingstrangersisamistakeanyonecanmakewhenitcomestotheirpersonalfinances.Almostanyonecansoundniceorhonestonthetelephone.Say“no”toanyinvestmentprofessionalwhopressesyoutomakeanimmediatedecision,givingyounoopportunitytocheckoutthesalesperson,orfirm,andtheinvestmentopportunityitself.Bewareofanyonewhosuggestsinvestingyourmoneyintosomethingyoudon’tunderstandorwhourgesthatyouleaveeverythinginhisorherhands.

Do not feel indebted to someone who gives you “unsolicited” financial advice. Thispersonmaybetryingtogainyourtrustsoheorshecanearnfeesandcommissionsbyinvestingyourmoney,sometimesinunsuitableinvestments.Ifaninvestmentsounds“toogoodtobetrue,”itprobablyis.Someunscrupulouscompaniestrytoenticeinvestorswithpromisesofreturnsashighas25%,50%,oreven500%.Suchclaimsareusuallyfraudulent.Allinvestmentsinvolverisk.Conartistsknowthatyouworryabouteitheroutlivingyoursavingsorseeingallofyourfinancialresourcesvanishovernightastheresultofacatastrophicevent,suchascostlyhospitalization.

Take your time - don’t be rushed into investment decisions.Salespersonswhousehigh-pressuretacticstoforceaninvestorintoanimmediatedecisionarealmostalwayspitchingfrauds.Theydon’twant youtothinktoocarefullyorfindouttoomuchbecauseyoumayfigureoutthatit’sascam.

• Askhow,andbywhom,theinvestmentadvisorisbeingpaidinconnectionwiththeservicesorproductsbeingoffered.

• Insistonreceivingaprospectusorprintedofferingmaterials.READTHEM.Anyinvestmentworthmakingwillstillbeavailableafteryouhavehadtimetoreadaboutit.

• Don’tbelievetheage-oldliethatyouwilllosemoneyifyoudon’tgetinrightaway.Thetruthaboutsuchclaimsalmostalwaysturnsouttobethatyouwilllosemoneyifyoudo getin.

• Ifyouhavequestions,askyourattorney,accountant,andfinancialadvisertoexplaintheinvestment.

• Thedeathorhospitalizationofaspousehasmanysadconsequences-financialfraudshouldn’tbeoneofthem.Ifyoufindyourselfsuddenlyinchargeofyourownfinances,getthefactsbeforeyoumakeanydecisions.

Don’t throw good money after bad.Bewareof“reload”scams.Conartistsknowthepanicpeoplefeelafterasuddenfinancialloss.Theyknowthatit’sthebesttimetopromisetorecovertheoriginalfundsinanother“surething”scheme.Don’tfallforthesame(orasimilar)schemetwice.

Check out your broker or adviser.Confirmthatyourbrokerandfinancialadviserisregisteredandingoodstanding.ContacttheOfficeofFinancialandInsuranceRegulation,at1-877-999-6442,tocheckoutyourbrokeroradvisor.

Keep tabs on your investments.

• Bewarywhenafinancialplannersays“leaveeverythingtome,”or“theplanistoocomplicatedtotellyou.”Everythingshouldbeclearandexplainabletoyou.

•Monitortheactivityonyouraccount.Insistonreceivingregularstatements.

• Neverbeembarrassedorapologeticaboutaskingquestionsfortradingactivitythatlooksexcessiveorunauthorized.It’syourmoney,notyourbroker’s.

• Keepallofyourrecordsrelatingtoyourinvestments,includingnotesofconversationsyouhavewithbrokers,salespeople,financialadvisers,andthelike.

• Don’tcompoundthemistakeoftrustinganunscrupulousinvestmentprofessionalbyfailingtokeepaneyeontheprogressofyourinvestment.Insistonregularwrittenreports.Lookforsignsofexcessiveorunauthorizedtradingofyourfunds.

Don’t be afraid to complain. Ifyourbrokeroradvisorstallsorhesitateswhenyouwantallorpartoftheprincipalof,orprofitsfrom,yourinvestment,askthereasonfortheholdup.Youmayhaveuncoveredaquestionablepractice.

Ifyoususpectthatsomethingiswrongandtheexplanationsyoureceivearenotsatisfactory,calltheOfficeofFinancialandInsuranceRegulationat1-877-999-6442andfileacomplaint.Don’tletembarrassmentorfearkeepyoufromreportinginvestmentfraudorabuse.

Don’t agree to invest with someone just because you share the same religious, cultural or ethnic background. Unfortunately,conartistswilluseanymeanstogainavictim’strust.Thisincludesexploitingacommonbackground.Manyinvestorsthinkthatbecausetheymetapotentialadvisorinachurchortemple,orataculturalorganization,theadvisormustbetrustworthyandhavetheirbestinterestsinmind.Conartiststhenusethistrusttostealtheirclients’money.Don’ttrustsomeonewithyourmoneyjustbecauseyouhaveasimilarbackground.Askthesamequestionsanddemandthesameinformationthatyouwouldfromanyotheradvisor.

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www.michigan.gov/seniorbrigadewww.michigan.gov/seniorbrigade

Financial Exploitation

Jasmine, who was becoming frail, allowed a woman to move into a room in her home in exchange for some help with light errands. Several months later, Jasmin’s daughter discovered that the woman had stolen thousands of dollars from Jasmin’s bank account using her ATM card. The woman had also had taken Jasmin to a lawyer and obtained “power of attorney” for herself.

Financialexploitationisthemisuseofsomeoneelse’smoney,withouttheirconsent.Manypeopleareswindledbypeopletheyknow–caregivers,neighbors,evenrelatives.

Examplesoffinancialexploitationinclude:threateningsomeoneintogivingawaymoney;trickingapersonwithamemoryproblemintoturningovermoney;forgingsignaturesonchecksorwithdrawalslips;makingunauthorizedwithdrawalsfrombankaccounts;chargingexcessivefeesforrentorcaregiverservices;andcommittingperson-to-person,mail,ortelephonefraudscams.

What you can do to protect your money:

• Putallfinancialinstructionsinwriting.Thisprotectsyouandreducesthelikelihoodofmisunderstandings.Keeprecordsofalltransactions.

•Understandanylifelongcareagreementsyouareenteringinto.Documenttheagreementandspecifythecompensation,ifthereisany,tobepaidtothecaregiver.

• Asksomeonetoreviewyourfinancialagreements.Yourattorney,accountant,orabankemployeecandetectchangesinyourfinancialactivitythatmaysignalaproblem.Youcanalsoaskatrustedfriendorrelativetoreviewyourmonthlystatements.

• Becautiousofjointaccounts.Bothpartiesareequalownersoftheaccountandbothhaveequalaccesstothemoney.

• Beforeyouassignapowerofattorney,besureyouunderstandtheauthorityyouaregivingtoyouragent.Knowthepersontowhomyouaregivingthisauthority.Writeintheagreementwhethertheagentwillbepaidornot,andifso,howmuch.

• Askabankemployee,atrustedfamilymember,orasocialworkerorotherprofessionalforhelpwhenyouareunsureaboutfinancialmatters.

• Stayconnectedtoyourcommunity.Socialisolationincreasesyourriskofbecomingavictimofabuse.Findoutaboutcommunityprogramsorsocialactivitiesinyourneighborhood.

Other tips to help you protect your money:

• Useadirectdepositserviceforyourchecks.

• Don’tsignblankchecksallowinganotherpersontofillintheamount.

• Don’tleavemoneyorvaluablesinplainview.

• Don’tsignanythingyoudon’tunderstand.

• CancelyourATMcardifyoudon’tuseit.

• Don’tgiveanyoneyourATMPIN.

• Checkyourfinancialstatementspromptlyandcarefullyforunauthorizedwithdrawals.

• Buildgoodrelationshipswiththeprofessionalswhohandleyourmoney.

• Don’tgiveanyaccountnumbertoastranger.

Home Equity Fraud

Aaliyah received a call from a lender who asked if she’d like to refinance her mortgage and get extra money to pay off debts, travel, or buy a new car. Aaliyah agreed. The lender called again a few months later and persuaded her to refinance again. This happened three times. Soon, almost all of Aaliyah’s equity was gone, and she was having trouble keeping up with the monthly payments.

Seniorsoftenhavelimitedincomesbuthavebuiltupsubstantialequityintheirhomes.Thatcanmakethematargetofunscrupuloushomeequitylenders.Someoftheselenderspromisetorefinanceyourmortgageorgiveyouahomeequityloanwithoutdisclosinghiddenfeesandterms.Ifyoucan’tkeepupwiththepayments,youcouldloseyourhome.

Some of the fraudulent lending practices to look out for are:

Repeated refinancing. Alendercallsandsaysit’stimeyourhomeequitystartedworkingforyou.Hesaysyoucangetextramoneytopayoffdebtsortakeavacation.Youagreetorefinance.Somemonthslater,thelendercallsagainandoffersyouanotherrefinancingdeal.Thelenderchargesyouhighpointsandfeeseachtimeyourefinance.Witheachrefinancing,you’veincreasedyourdebt.

Hidden loan terms, such as a balloon payment. Thenewloanmayrequirepaymentsthatonlypaytheinteresteachmonth.Attheendoftheloanterm,theentireprincipalisdueinonelumpsum(aballoonpayment).Ifyoucan’tmakethatpayment,youfaceforeclosure.

Credit insurance or other charges “packed” into the mortgage. Atclosing,thelendermaytrytoincludeachargeforcreditinsuranceorother“benefits”youdidnotaskforanddon’tneed,andhopeyouwon’tnoticewhenyousignthepapers.

Signing over your deed. Ifyouarehavingtroublepayingyourmortgageandthelenderhasthreatenedforeclosure,youmayfeeldesperate.Another“lender”maycontactyouwithanoffertohelpyoufindnewfinancing.Beforehecanhelpyou,heasksyoutodeedyourpropertytohim,claimingit’satemporarymeasuretopreventforeclosure.Oncethelenderhasthedeedtoyourproperty,hemayborrowagainstit,sellittosomeoneelseorevictyou.

• Don’tsignanydocumentyouhaven’treadorthathasblankspacestobefilledinafteryousign.

• Readoveryourdocumentscarefullyandlookforanyhiddencharges,orchargesthatyouknowshouldnotbeincluded.Ifyouseeachargeforsomethingyouknowshouldnotbeincluded,askthatitberemoved.Ifthecompanyrefusestoremovethecharge,don’tsignthedocuments.

• Don’tdeedyourpropertytoanyonewithoutfirstconsultinganattorney,aknowledgeablefamilymember,orsomeoneelseyoutrust.

• Alwaysreadcontractscarefully.Talkthemoverwithsomeoneyoutrust,suchasaknowledgeablefamilymemberoranattorney.

Formoreinformationabouthomeequityloansandhomeequityfraud,seetheAmericanAssociationofRetiredPerson’swebsiteat www.aarp.org.

Remember: Makemonthlymortgagepaymentsonlytoyourlenderorservicer.Nomatterhowgooditsounds,don’tletanotherpersonmakemortgagepaymentsforyou.

CalltheOfficeofFinancialandInsuranceRegulationat1-877-999-6442tocheckifaloancompanyisalicensedfinanciallenderorifyouthinkyouareavictimofhomeequityfraud.

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www.michigan.gov/seniorbrigadewww.michigan.gov/seniorbrigade

Financial Exploitation

Jasmine, who was becoming frail, allowed a woman to move into a room in her home in exchange for some help with light errands. Several months later, Jasmin’s daughter discovered that the woman had stolen thousands of dollars from Jasmin’s bank account using her ATM card. The woman had also had taken Jasmin to a lawyer and obtained “power of attorney” for herself.

Financialexploitationisthemisuseofsomeoneelse’smoney,withouttheirconsent.Manypeopleareswindledbypeopletheyknow–caregivers,neighbors,evenrelatives.

Examplesoffinancialexploitationinclude:threateningsomeoneintogivingawaymoney;trickingapersonwithamemoryproblemintoturningovermoney;forgingsignaturesonchecksorwithdrawalslips;makingunauthorizedwithdrawalsfrombankaccounts;chargingexcessivefeesforrentorcaregiverservices;andcommittingperson-to-person,mail,ortelephonefraudscams.

What you can do to protect your money:

• Putallfinancialinstructionsinwriting.Thisprotectsyouandreducesthelikelihoodofmisunderstandings.Keeprecordsofalltransactions.

•Understandanylifelongcareagreementsyouareenteringinto.Documenttheagreementandspecifythecompensation,ifthereisany,tobepaidtothecaregiver.

• Asksomeonetoreviewyourfinancialagreements.Yourattorney,accountant,orabankemployeecandetectchangesinyourfinancialactivitythatmaysignalaproblem.Youcanalsoaskatrustedfriendorrelativetoreviewyourmonthlystatements.

• Becautiousofjointaccounts.Bothpartiesareequalownersoftheaccountandbothhaveequalaccesstothemoney.

• Beforeyouassignapowerofattorney,besureyouunderstandtheauthorityyouaregivingtoyouragent.Knowthepersontowhomyouaregivingthisauthority.Writeintheagreementwhethertheagentwillbepaidornot,andifso,howmuch.

• Askabankemployee,atrustedfamilymember,orasocialworkerorotherprofessionalforhelpwhenyouareunsureaboutfinancialmatters.

• Stayconnectedtoyourcommunity.Socialisolationincreasesyourriskofbecomingavictimofabuse.Findoutaboutcommunityprogramsorsocialactivitiesinyourneighborhood.

Other tips to help you protect your money:

• Useadirectdepositserviceforyourchecks.

• Don’tsignblankchecksallowinganotherpersontofillintheamount.

• Don’tleavemoneyorvaluablesinplainview.

• Don’tsignanythingyoudon’tunderstand.

• CancelyourATMcardifyoudon’tuseit.

• Don’tgiveanyoneyourATMPIN.

• Checkyourfinancialstatementspromptlyandcarefullyforunauthorizedwithdrawals.

• Buildgoodrelationshipswiththeprofessionalswhohandleyourmoney.

• Don’tgiveanyaccountnumbertoastranger.

Home Equity Fraud

Aaliyah received a call from a lender who asked if she’d like to refinance her mortgage and get extra money to pay off debts, travel, or buy a new car. Aaliyah agreed. The lender called again a few months later and persuaded her to refinance again. This happened three times. Soon, almost all of Aaliyah’s equity was gone, and she was having trouble keeping up with the monthly payments.

Seniorsoftenhavelimitedincomesbuthavebuiltupsubstantialequityintheirhomes.Thatcanmakethematargetofunscrupuloushomeequitylenders.Someoftheselenderspromisetorefinanceyourmortgageorgiveyouahomeequityloanwithoutdisclosinghiddenfeesandterms.Ifyoucan’tkeepupwiththepayments,youcouldloseyourhome.

Some of the fraudulent lending practices to look out for are:

Repeated refinancing. Alendercallsandsaysit’stimeyourhomeequitystartedworkingforyou.Hesaysyoucangetextramoneytopayoffdebtsortakeavacation.Youagreetorefinance.Somemonthslater,thelendercallsagainandoffersyouanotherrefinancingdeal.Thelenderchargesyouhighpointsandfeeseachtimeyourefinance.Witheachrefinancing,you’veincreasedyourdebt.

Hidden loan terms, such as a balloon payment. Thenewloanmayrequirepaymentsthatonlypaytheinteresteachmonth.Attheendoftheloanterm,theentireprincipalisdueinonelumpsum(aballoonpayment).Ifyoucan’tmakethatpayment,youfaceforeclosure.

Credit insurance or other charges “packed” into the mortgage. Atclosing,thelendermaytrytoincludeachargeforcreditinsuranceorother“benefits”youdidnotaskforanddon’tneed,andhopeyouwon’tnoticewhenyousignthepapers.

Signing over your deed. Ifyouarehavingtroublepayingyourmortgageandthelenderhasthreatenedforeclosure,youmayfeeldesperate.Another“lender”maycontactyouwithanoffertohelpyoufindnewfinancing.Beforehecanhelpyou,heasksyoutodeedyourpropertytohim,claimingit’satemporarymeasuretopreventforeclosure.Oncethelenderhasthedeedtoyourproperty,hemayborrowagainstit,sellittosomeoneelseorevictyou.

• Don’tsignanydocumentyouhaven’treadorthathasblankspacestobefilledinafteryousign.

• Readoveryourdocumentscarefullyandlookforanyhiddencharges,orchargesthatyouknowshouldnotbeincluded.Ifyouseeachargeforsomethingyouknowshouldnotbeincluded,askthatitberemoved.Ifthecompanyrefusestoremovethecharge,don’tsignthedocuments.

• Don’tdeedyourpropertytoanyonewithoutfirstconsultinganattorney,aknowledgeablefamilymember,orsomeoneelseyoutrust.

• Alwaysreadcontractscarefully.Talkthemoverwithsomeoneyoutrust,suchasaknowledgeablefamilymemberoranattorney.

Formoreinformationabouthomeequityloansandhomeequityfraud,seetheAmericanAssociationofRetiredPerson’swebsiteat www.aarp.org.

Remember: Makemonthlymortgagepaymentsonlytoyourlenderorservicer.Nomatterhowgooditsounds,don’tletanotherpersonmakemortgagepaymentsforyou.

CalltheOfficeofFinancialandInsuranceRegulationat1-877-999-6442tocheckifaloancompanyisalicensedfinanciallenderorifyouthinkyouareavictimofhomeequityfraud.

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Home Medical Equipment Scams

Jose was having problems climbing the stairs in his house, so he called a company that advertised it sold stairlifts. A salesman came to his house and promised to install the stairlift within two weeks, and took a payment of $2,000 from Jose. However, months passed and the company didn’t deliver the stairlift, but kept coming up with excuses. Jose finally sued and got some of his money back.

Therearemanyreputableandreliablehomemedicalequipmentsuppliers,butunfortunatelytherearealsothosethatchargeforequipmenttheyneverdeliverorsellseniorsexpensiveequipmenttheydon’treallyneed.TheysometimesimplyorpromisethatMedicarewillpayfortheequipmentwhenthatmaynotbetrue,andtheseniorisstuckwithexpensivebills.Someexamplesoftacticsthesalespeopleusearestayinginyourhomeforalengthyperiodoftime,preventingyoufromaskingothers’advice,andsettingupequipmentthatishardtomove.

Before buying home medical equipment:

•Getadvicefromyourdoctor,hospitaldischargeplanner,orphysicaltherapist, NOTfromasalesperson.Theyknowwhatyourneedsarebetterthanasalesperson,andtheycanlikelydirectyoutohonest,reputablesellersofhomeequipment.

• Checkthecompany’sreputationwithyourhealthcarespecialist.CalltheAttorneyGeneral’sConsumerProtectionDivisionat1-877-765-8388toseeifcomplaintshavebeenfiledagainstthecompany.

• Besuspiciousifthecompanydoesnothaveastore,showroom,orofficeyoucanvisit.

• Consultyourpropermedicalauthoritiestoverifywhenequipmentislaudedasa“breakthrough”answertoacommonailment.

• BewareofcompaniesthatpromotethemselvesasrepresentativesofMedicare,orsendliteraturehavingMedicareemblems,leadingyoutobelieveMedicareendorsestheirproductorservice.Medicaredoesnotsolicitbytelephoneormailanddoesnotauthorizeanyonetodoso.Medicaredoesnotsupplyequipment,recommendspecificsuppliers,orprovidebeneficiarynamestosuppliers.

• Ifthemedicalequipmentissomethingthatneedstobeinstalledinthehome,calltheBureauofCommercialServicesat1-517-373-8376,toseeifthecompanyislicensed.

The Michigan Wheelchair Law

Ifyoubuyorleaseawheelchair,youareprotectedbytheMichiganWheelchairLaw,MCL445.1081.Thislawrequiresthemanufacturerofawheelchairtogivetheconsumeranexpresswarranty,coveringeverythingexceptthewheelchair’stiresandbatteries(ifapplicable)foratleastoneyearfornewwheelchairsor60daysforused,refurbished,orreconditionedwheelchairs.Ifyoureportaproblemwiththewheelchairwithinthatyear,themanufacturermustpaytofixtheproblem,replacethewheelchair,orgiveyouarefund.

3. Health ScamsPredatory lenders look for people with financial problems who are looking to buy a home, refinance a mortgage, obtain a home equity loan, or save a home from being foreclosed. They blame their outrageous interest and fees on the consumer’s shaky credit and take advantage of the consumer’s lack of financial knowledge.

Some red flags to look out for:

• Thelendertriestohidehighclosingcostsandfeessuchasloanorigination,underwritingfees,brokerfees,andtransaction/closingcosts.Theinterestrateshouldnotbewellabovethemarketaverage.

•Monthlypaymentsaresmall,butalargesumisscheduledattheend.Thisisacommonwayforlenderstoensuretheconsumerwillhavetoapplyforanotherhighinterestloan.

• Thelenderpressurestheconsumertotakeoutaloanformorethanthepropertyvalue.Thissortofloanputsboththeconsumerandhisorherfinancialrecordatgreatrisk.

• Thereisalargepenaltyforpayingoffloansearly.Thispre-paymentpenaltymakesitdifficultfortheconsumertorefinancetoalowerandbetterinterestrate.

Steps you can take to protect yourself:

• Revieweverydocumentcarefully.Donotfeelshytoaskfordocumentsinadvancetoensureplentyofreadingtime.Neversignmortgagedocumentswithblankspacesremaining.Mosttermssuchasinterestrate,choiceoffixedorvariableinterest,loanlength,andpre-paymentpenaltiesarenegotiable.

• Shoparoundandcompareloanoffers.Remember,donotfocusjustonmonthlypaymentsbutonalltermssuchascontractlengthandhowmuchyou’reborrowing.

Remember: CalltheOfficeofFinancialandInsuranceRegulationat1-877-999-6442tocheckifaloancompanyisalicensedfinanciallenderortocomplainaboutpredatorylending.

Predatory Lending

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Home Medical Equipment Scams

Jose was having problems climbing the stairs in his house, so he called a company that advertised it sold stairlifts. A salesman came to his house and promised to install the stairlift within two weeks, and took a payment of $2,000 from Jose. However, months passed and the company didn’t deliver the stairlift, but kept coming up with excuses. Jose finally sued and got some of his money back.

Therearemanyreputableandreliablehomemedicalequipmentsuppliers,butunfortunatelytherearealsothosethatchargeforequipmenttheyneverdeliverorsellseniorsexpensiveequipmenttheydon’treallyneed.TheysometimesimplyorpromisethatMedicarewillpayfortheequipmentwhenthatmaynotbetrue,andtheseniorisstuckwithexpensivebills.Someexamplesoftacticsthesalespeopleusearestayinginyourhomeforalengthyperiodoftime,preventingyoufromaskingothers’advice,andsettingupequipmentthatishardtomove.

Before buying home medical equipment:

•Getadvicefromyourdoctor,hospitaldischargeplanner,orphysicaltherapist, NOTfromasalesperson.Theyknowwhatyourneedsarebetterthanasalesperson,andtheycanlikelydirectyoutohonest,reputablesellersofhomeequipment.

• Checkthecompany’sreputationwithyourhealthcarespecialist.CalltheAttorneyGeneral’sConsumerProtectionDivisionat1-877-765-8388toseeifcomplaintshavebeenfiledagainstthecompany.

• Besuspiciousifthecompanydoesnothaveastore,showroom,orofficeyoucanvisit.

• Consultyourpropermedicalauthoritiestoverifywhenequipmentislaudedasa“breakthrough”answertoacommonailment.

• BewareofcompaniesthatpromotethemselvesasrepresentativesofMedicare,orsendliteraturehavingMedicareemblems,leadingyoutobelieveMedicareendorsestheirproductorservice.Medicaredoesnotsolicitbytelephoneormailanddoesnotauthorizeanyonetodoso.Medicaredoesnotsupplyequipment,recommendspecificsuppliers,orprovidebeneficiarynamestosuppliers.

• Ifthemedicalequipmentissomethingthatneedstobeinstalledinthehome,calltheBureauofCommercialServicesat1-517-373-8376,toseeifthecompanyislicensed.

The Michigan Wheelchair Law

Ifyoubuyorleaseawheelchair,youareprotectedbytheMichiganWheelchairLaw,MCL445.1081.Thislawrequiresthemanufacturerofawheelchairtogivetheconsumeranexpresswarranty,coveringeverythingexceptthewheelchair’stiresandbatteries(ifapplicable)foratleastoneyearfornewwheelchairsor60daysforused,refurbished,orreconditionedwheelchairs.Ifyoureportaproblemwiththewheelchairwithinthatyear,themanufacturermustpaytofixtheproblem,replacethewheelchair,orgiveyouarefund.

3. Health ScamsPredatory lenders look for people with financial problems who are looking to buy a home, refinance a mortgage, obtain a home equity loan, or save a home from being foreclosed. They blame their outrageous interest and fees on the consumer’s shaky credit and take advantage of the consumer’s lack of financial knowledge.

Some red flags to look out for:

• Thelendertriestohidehighclosingcostsandfeessuchasloanorigination,underwritingfees,brokerfees,andtransaction/closingcosts.Theinterestrateshouldnotbewellabovethemarketaverage.

•Monthlypaymentsaresmall,butalargesumisscheduledattheend.Thisisacommonwayforlenderstoensuretheconsumerwillhavetoapplyforanotherhighinterestloan.

• Thelenderpressurestheconsumertotakeoutaloanformorethanthepropertyvalue.Thissortofloanputsboththeconsumerandhisorherfinancialrecordatgreatrisk.

• Thereisalargepenaltyforpayingoffloansearly.Thispre-paymentpenaltymakesitdifficultfortheconsumertorefinancetoalowerandbetterinterestrate.

Steps you can take to protect yourself:

• Revieweverydocumentcarefully.Donotfeelshytoaskfordocumentsinadvancetoensureplentyofreadingtime.Neversignmortgagedocumentswithblankspacesremaining.Mosttermssuchasinterestrate,choiceoffixedorvariableinterest,loanlength,andpre-paymentpenaltiesarenegotiable.

• Shoparoundandcompareloanoffers.Remember,donotfocusjustonmonthlypaymentsbutonalltermssuchascontractlengthandhowmuchyou’reborrowing.

Remember: CalltheOfficeofFinancialandInsuranceRegulationat1-877-999-6442tocheckifaloancompanyisalicensedfinanciallenderortocomplainaboutpredatorylending.

Predatory Lending

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www.michigan.gov/seniorbrigadewww.michigan.gov/seniorbrigade

Miracle Cures

Several Michigan consumers who had life-threatening illnesses bought a product that was marketed as a “miracle cure” in radio commercials and on the Internet. The treatments cost thousands of dollars and did not appear to help anyone.

AccordingtotheFederalTradeCommission,consumerswastebillionsofdollarsonunproven,sometimesuselesshealthcaretreatments.Asagroup,olderpeoplehavemorechronicillnessesthanyoungerpeopleandtheyaremoreoftentargetsforfraud.Unfortunately,the“cure”isoftenuseless.Thevictimswhofallpreytothescamwastetheirmoney,endurepainfultreatments,andmayevenforgotraditionalmedicinethatmightbeabletohelpthem.Theycanalsohinderseniorcitizensfrompursuingvalidandneededmedicaltreatmentsinatimelyfashion.

Be skeptical if a product is advertised with these kinds of claims:

• It’sa“scientificbreakthrough”orhasanew,secretingredientthatcancureawiderange ofailments;

• Thepromoterclaimsthemedicalestablishmentorthegovernmenthasaconspiracytosuppresstheproduct;

• Thepromoteruses“testimonials”frompeoplewhosaytheyexperiencedamazingresultsusingtheproduct;

• “Natural”or“herbal”doesnotequal“safe.”Manyherbalingredientsaretoxicincertaindoses,causeallergicreactions,orreactwithprescriptionorover-the-countermedications.

Ifyouhaveaseriousillnessorcondition,thebestadviceistoalwaysseeadoctor.Discussanyproductsyouareconsideringtakingwithyourdoctor.Besuspiciousoftakinghealthadvicefromanadvertisementorstranger.

For more information:

Becausethereisnocureforarthritis,therearemanyfalsearthritiscuresandremedies.TheArthritisFoundationsaysthatarthritisshouldbemonitoredbyadoctorbecausetheconditioncanworsenifitisnotproperlytreated.Forafreebrochureaboutunprovenremedies,calltheArthritisFoundationtoll-freeat1-800-283-7800.

Inaddition,theFederalTradeCommission(FTC)hascreatedawebsitewhichprovideshelpfulinformationonhealthcareproductsandservices.Thewebsitealsoincludesinformationaboutcommonhealthcare-relatedscams,includingMedicareandMedicarePartDScams,miraclecures,andprescriptionassistanceprograms. Formoreinformation,pleasevisittheFTC’s“WhoCares?”website,at www.ftc.gov/whocares.

Esther received a phone call from a charity that had a name similar to a national cystic fibrosis organization. Touched by the thought of helping children, she agreed to make a donation. Later, she saw a news report that the organization was not the charity she thought it was, but a scam operation.

Thegenerosityofseniorsmakesthemafavoritetargetofcharityscams.Tomakethebestuseofyourcharitabledollars,alwaysfollowtheserules:

• Neveragreetogivemoneyoverthephone.Nevergivecreditcardorotherpersonalinformationtoatelephonesolicitor.Ifthecharityisunfamiliar,askthecallertosendwritteninformationaboutthecharityanditswork,andreaditbeforemakingyourdecision.Ifsomeoneaskingforyourdonationwon’tagreegiveyouinformationuntilafteryouhavecontributed,don’tcontribute-youshouldneverhavetomakeapledgetohavemoreinformationsenttoyou.

• CalltheMichiganAttorneyGeneral’sOffice,CharitableTrustSectionat1-517-373-1152,orvisittheAttorneyGeneral’swebsiteat www.michigan.gov/agcharitiestofindoutifthecharityisregisteredinMichigan,asrequired.Becausenotallcharitiesarerequiredtoberegistered,callourofficeiftheorganizationisnotlisted.

• TheAttorneyGeneral’sCharitableTrustSectioncantellyouwhatpercentageofyourdonationisusedfortheorganization’scharitablemission.Whilemostcharitiespayoutsidecompaniestosolicitdonationsoverthephone,inperson,orbymail,afewcharitiespermitprofessionalfund-raiserstokeepasubstantialportionofdonors’money–asmuchas90%ofdonations–astheirfee.Investigatebeforeyougive!

RemembertoBEWAREwhenyouareaskedtodonatetoacharityandencounteranyofthesewarningsigns:

Billsorinvoicessenttoyoueventhoughyouneverpledgedmoneytotheorganization.

Evasive,vague,orunresponsiveanswerstospecificquestionsaboutthecharityandhowmoneyisused.

Wordsmakingupacharity’snamethatcloselyresembleamorewell-knowncharity.

Allowingnotimetoreconsideryourpledge;theyinsistoncollectingyourdonationimmediately.

Refusaltoanswerquestionsaboutwhereyourmoneywillgo,refusaltosendinformationaboutthecharity,orrefusaltoprovideareceipt.

Emotionalappealsandhigh-pressuretacticstogetyoutomakeaquickdecisionorfeelguiltyaboutnotcontributing.

4. Wise Charitable Giving

BE WARE

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www.michigan.gov/seniorbrigadewww.michigan.gov/seniorbrigade

Miracle Cures

Several Michigan consumers who had life-threatening illnesses bought a product that was marketed as a “miracle cure” in radio commercials and on the Internet. The treatments cost thousands of dollars and did not appear to help anyone.

AccordingtotheFederalTradeCommission,consumerswastebillionsofdollarsonunproven,sometimesuselesshealthcaretreatments.Asagroup,olderpeoplehavemorechronicillnessesthanyoungerpeopleandtheyaremoreoftentargetsforfraud.Unfortunately,the“cure”isoftenuseless.Thevictimswhofallpreytothescamwastetheirmoney,endurepainfultreatments,andmayevenforgotraditionalmedicinethatmightbeabletohelpthem.Theycanalsohinderseniorcitizensfrompursuingvalidandneededmedicaltreatmentsinatimelyfashion.

Be skeptical if a product is advertised with these kinds of claims:

• It’sa“scientificbreakthrough”orhasanew,secretingredientthatcancureawiderange ofailments;

• Thepromoterclaimsthemedicalestablishmentorthegovernmenthasaconspiracytosuppresstheproduct;

• Thepromoteruses“testimonials”frompeoplewhosaytheyexperiencedamazingresultsusingtheproduct;

• “Natural”or“herbal”doesnotequal“safe.”Manyherbalingredientsaretoxicincertaindoses,causeallergicreactions,orreactwithprescriptionorover-the-countermedications.

Ifyouhaveaseriousillnessorcondition,thebestadviceistoalwaysseeadoctor.Discussanyproductsyouareconsideringtakingwithyourdoctor.Besuspiciousoftakinghealthadvicefromanadvertisementorstranger.

For more information:

Becausethereisnocureforarthritis,therearemanyfalsearthritiscuresandremedies.TheArthritisFoundationsaysthatarthritisshouldbemonitoredbyadoctorbecausetheconditioncanworsenifitisnotproperlytreated.Forafreebrochureaboutunprovenremedies,calltheArthritisFoundationtoll-freeat1-800-283-7800.

Inaddition,theFederalTradeCommission(FTC)hascreatedawebsitewhichprovideshelpfulinformationonhealthcareproductsandservices.Thewebsitealsoincludesinformationaboutcommonhealthcare-relatedscams,includingMedicareandMedicarePartDScams,miraclecures,andprescriptionassistanceprograms. Formoreinformation,pleasevisittheFTC’s“WhoCares?”website,at www.ftc.gov/whocares.

Esther received a phone call from a charity that had a name similar to a national cystic fibrosis organization. Touched by the thought of helping children, she agreed to make a donation. Later, she saw a news report that the organization was not the charity she thought it was, but a scam operation.

Thegenerosityofseniorsmakesthemafavoritetargetofcharityscams.Tomakethebestuseofyourcharitabledollars,alwaysfollowtheserules:

• Neveragreetogivemoneyoverthephone.Nevergivecreditcardorotherpersonalinformationtoatelephonesolicitor.Ifthecharityisunfamiliar,askthecallertosendwritteninformationaboutthecharityanditswork,andreaditbeforemakingyourdecision.Ifsomeoneaskingforyourdonationwon’tagreegiveyouinformationuntilafteryouhavecontributed,don’tcontribute-youshouldneverhavetomakeapledgetohavemoreinformationsenttoyou.

• CalltheMichiganAttorneyGeneral’sOffice,CharitableTrustSectionat1-517-373-1152,orvisittheAttorneyGeneral’swebsiteat www.michigan.gov/agcharitiestofindoutifthecharityisregisteredinMichigan,asrequired.Becausenotallcharitiesarerequiredtoberegistered,callourofficeiftheorganizationisnotlisted.

• TheAttorneyGeneral’sCharitableTrustSectioncantellyouwhatpercentageofyourdonationisusedfortheorganization’scharitablemission.Whilemostcharitiespayoutsidecompaniestosolicitdonationsoverthephone,inperson,orbymail,afewcharitiespermitprofessionalfund-raiserstokeepasubstantialportionofdonors’money–asmuchas90%ofdonations–astheirfee.Investigatebeforeyougive!

RemembertoBEWAREwhenyouareaskedtodonatetoacharityandencounteranyofthesewarningsigns:

Billsorinvoicessenttoyoueventhoughyouneverpledgedmoneytotheorganization.

Evasive,vague,orunresponsiveanswerstospecificquestionsaboutthecharityandhowmoneyisused.

Wordsmakingupacharity’snamethatcloselyresembleamorewell-knowncharity.

Allowingnotimetoreconsideryourpledge;theyinsistoncollectingyourdonationimmediately.

Refusaltoanswerquestionsaboutwhereyourmoneywillgo,refusaltosendinformationaboutthecharity,orrefusaltoprovideareceipt.

Emotionalappealsandhigh-pressuretacticstogetyoutomakeaquickdecisionorfeelguiltyaboutnotcontributing.

4. Wise Charitable Giving

BE WARE

1615

www.michigan.gov/seniorbrigadewww.michigan.gov/seniorbrigade

Pre-Need Burial and Funeral Contracts

Jamal told his daughter that he had pre-paid for his funeral and his burial and the contracts would take care of everything. When he died, however, his daughter found out that neither contract paid for interment, which cost an additional $795 for the grave site alone.

Manypeopletodaychoosetoplanaheadforfuneralsandotherfinalarrangements,makinginformeddecisionsinadvanceaboutburialandcremationandmemorials.Manyalsoputasidethefundstopayforthesearrangementsinavarietyoffiscalinstruments-trusts,insurance,andotheraccounts.

ButmoreandmoreMichiganconsumers,especiallytheelderly,arereceivingdirectmailandtelemarketingcallsfromsellersofpre-needfuneralgoods-cemeterylots,urns,andcaskets-andarepressedtopayinadvanceforgoodsandservicestheymaynotneedoruseinthefuture.

Michigan’s Prepaid Funeral Contract Funding Act permitsanyonetosellfuneralgoodsandservicesonapre-arrangedbasis,aslongastheyregisterasasellerwiththeStateofMichigan.Theprovidersofthesegoodsandservicesarenotallthesame.Forinstance,funeraldirectorsinMichiganaretested,regulated,andinspectedbythestate.Pre-needsellersdonothavetobesimilarlylicensed.Ifyoudecideyouwouldliketopayinadvanceforfuneralgoodsandservices,makesureyourmoneyissafeandwillbetherewhentheneedarises.Lawssafeguardingyourmoneymayvarybaseduponthefuneralgoodsorservicesbeingsold.

ConsumersareencouragedbytheAttorneyGeneral’sofficetoobtainawrittenexplanationofexactlyhowtheirmoneyisprotectedineachtransaction,andimportantly,whetherthe

pre-needcontractisguaranteed,revocable,refundable,transferable,andportable.

TheAttorneyGeneral’sOffice,theFederalTradeCommission,AARP,ABCNewsandConsumerReports haveeachdonerecentinvestigationsintothesaleoffuneralgoodsandservices.Consumersareentitledtogoodinformationuponwhichtobasesensibledecisionsaboutfuneralsbeforeorwhen theneedarises.Buttheyshouldnotbepressuredtopayinadvanceformerchandiseorservicestheymaynotneed.Norshouldtheybetargetedforhigh-pressuremarketingandsalesschemes.TheFederalTradeCommission’spublication“Funerals: A Consumer Guide”detailstherequirementsoffederallawandprovidesamorecomprehensiveoverview.ThepublicationisavailablefromtheFTCbycalling1-877-382-4357;TDD:1-202-326-2502oronlineat:www.ftc.gov.

Beforesigninganypre-needcontractorpayingforanythinginadvance,consumersshouldconsiderthefollowingquestions:

•Whatareyouarepayingfor?Areyoubuyingonlymerchandise,likeacasketandvault,orareyoupurchasingfuneralservicesaswell?Whowilleventuallyprovidetheservicesandmerchandiseyouarepurchasing?

•Whoareyoudealingwith?Alicensedfuneraldirector?Acemeterysalesperson?Acommissionedpre-needseller?Whoownsthefirm?Howlonghavetheybeen inbusiness?

•Whathappenstothemoneyyou’veprepaid?

•Whathappenstotheinterestincomeonmoneythatisprepaidandputintoatrustaccount?

• Areyouprotectedifthefirmyoudealt withgoesoutofbusiness?

• Canyoucancelthecontractandgetafullrefundifyouchangeyourmind?

•Whathappensifyoumovetoadifferentareaordiewhileawayfromhome?Someprepaidfuneralplanscanbetransferred,butoftenatanaddedcost.

5. Estate Planning

1817

• Arethesearrangementsportable,transferable,andrefundablewithoutpenalty?

• Haveyouconsultedyourfamily,yourreligious,spiritual,andfinancialadvisors?

• Areyoufeeling“pressured”orhurriedtomakethesearrangementsorbuysomethingbeforeyoureallyneedit?Ifso,bywhom?

Another resource you may wish to contact includes:

AARPFulfillment 601EStreet,NW Washington,DC20049 1-800-424-3410 www.aarp.org

AARPisanonprofit,nonpartisanorganizationdedicatedtohelpingolderAmericansachievelivesofindependence,dignityandpurpose.Itspublication,“PreplanningYourFuneralArrangements,”isavailablefreeonlineorbycontactingAARP.

www.michigan.gov/seniorbrigadewww.michigan.gov/seniorbrigade

Pre-Need Burial and Funeral Contracts

Jamal told his daughter that he had pre-paid for his funeral and his burial and the contracts would take care of everything. When he died, however, his daughter found out that neither contract paid for interment, which cost an additional $795 for the grave site alone.

Manypeopletodaychoosetoplanaheadforfuneralsandotherfinalarrangements,makinginformeddecisionsinadvanceaboutburialandcremationandmemorials.Manyalsoputasidethefundstopayforthesearrangementsinavarietyoffiscalinstruments-trusts,insurance,andotheraccounts.

ButmoreandmoreMichiganconsumers,especiallytheelderly,arereceivingdirectmailandtelemarketingcallsfromsellersofpre-needfuneralgoods-cemeterylots,urns,andcaskets-andarepressedtopayinadvanceforgoodsandservicestheymaynotneedoruseinthefuture.

Michigan’s Prepaid Funeral Contract Funding Act permitsanyonetosellfuneralgoodsandservicesonapre-arrangedbasis,aslongastheyregisterasasellerwiththeStateofMichigan.Theprovidersofthesegoodsandservicesarenotallthesame.Forinstance,funeraldirectorsinMichiganaretested,regulated,andinspectedbythestate.Pre-needsellersdonothavetobesimilarlylicensed.Ifyoudecideyouwouldliketopayinadvanceforfuneralgoodsandservices,makesureyourmoneyissafeandwillbetherewhentheneedarises.Lawssafeguardingyourmoneymayvarybaseduponthefuneralgoodsorservicesbeingsold.

ConsumersareencouragedbytheAttorneyGeneral’sofficetoobtainawrittenexplanationofexactlyhowtheirmoneyisprotectedineachtransaction,andimportantly,whetherthe

pre-needcontractisguaranteed,revocable,refundable,transferable,andportable.

TheAttorneyGeneral’sOffice,theFederalTradeCommission,AARP,ABCNewsandConsumerReports haveeachdonerecentinvestigationsintothesaleoffuneralgoodsandservices.Consumersareentitledtogoodinformationuponwhichtobasesensibledecisionsaboutfuneralsbeforeorwhen theneedarises.Buttheyshouldnotbepressuredtopayinadvanceformerchandiseorservicestheymaynotneed.Norshouldtheybetargetedforhigh-pressuremarketingandsalesschemes.TheFederalTradeCommission’spublication“Funerals: A Consumer Guide”detailstherequirementsoffederallawandprovidesamorecomprehensiveoverview.ThepublicationisavailablefromtheFTCbycalling1-877-382-4357;TDD:1-202-326-2502oronlineat:www.ftc.gov.

Beforesigninganypre-needcontractorpayingforanythinginadvance,consumersshouldconsiderthefollowingquestions:

•Whatareyouarepayingfor?Areyoubuyingonlymerchandise,likeacasketandvault,orareyoupurchasingfuneralservicesaswell?Whowilleventuallyprovidetheservicesandmerchandiseyouarepurchasing?

•Whoareyoudealingwith?Alicensedfuneraldirector?Acemeterysalesperson?Acommissionedpre-needseller?Whoownsthefirm?Howlonghavetheybeen inbusiness?

•Whathappenstothemoneyyou’veprepaid?

•Whathappenstotheinterestincomeonmoneythatisprepaidandputintoatrustaccount?

• Areyouprotectedifthefirmyoudealt withgoesoutofbusiness?

• Canyoucancelthecontractandgetafullrefundifyouchangeyourmind?

•Whathappensifyoumovetoadifferentareaordiewhileawayfromhome?Someprepaidfuneralplanscanbetransferred,butoftenatanaddedcost.

5. Estate Planning

1817

• Arethesearrangementsportable,transferable,andrefundablewithoutpenalty?

• Haveyouconsultedyourfamily,yourreligious,spiritual,andfinancialadvisors?

• Areyoufeeling“pressured”orhurriedtomakethesearrangementsorbuysomethingbeforeyoureallyneedit?Ifso,bywhom?

Another resource you may wish to contact includes:

AARPFulfillment 601EStreet,NW Washington,DC20049 1-800-424-3410 www.aarp.org

AARPisanonprofit,nonpartisanorganizationdedicatedtohelpingolderAmericansachievelivesofindependence,dignityandpurpose.Itspublication,“PreplanningYourFuneralArrangements,”isavailablefreeonlineorbycontactingAARP.

www.michigan.gov/seniorbrigadewww.michigan.gov/seniorbrigade

Living Trusts

Victoria went to a seminar on living trusts. The speaker said a living trust was a way to avoid the high cost of probate, which he said would eat up a third of her estate. She paid $1,500 for a living trust package. However, she did not understand that she had to personally transfer all of her property to the trust. She missed doing the paperwork on some items, so when she died her estate had to go through probate anyway. As it turned out, the probate fee was only $500.

Inrecentyears,for-profitcompanieshaveaggressivelypromotedthesaleoflivingtruststoseniors.Theyplayonpeople’sfearsandmisconceptionsaboutprobateandestatetaxes,andpromotelivingtrustsasasuitableestate-planningtoolforeveryone.Probateisalegalprocessthatoverseesthetransferofpropertyfromadeceasedperson’sestatetothebeneficiaries.However,alivingtrustisNOTsuitableforeveryone’ssituationandlivingtrustpackagesmarketedatseminars,bypostcard,andontheInternetareusuallyawasteofmoney.Alivingtrustletsyoudirecthowpropertyyouplaceinthetrustwillbedistributedafteryourdeath.Itallowsyourtrustpropertytopasstoyourbeneficiarieswithoutgoingthroughtheprobateprocess.Livingtrustscanbeusefulifapersonownsrealestateinmorethanonestate,anticipatesthathisorherwillmightbecontested,orwantstohavesomeoneelsemanagehisorhercurrentassets.However,livingtrustsarenotthebestestateplanningchoiceformostpeopleinmostcircumstances.

Also,livingtrustsmarketedbysalespeoplemayusepre-packagedformsthatarenottailoredtotheconsumer’sindividualcircumstances,andmaynotcomplywithMichiganlawsandregulations.Thesesalespeopleoften:

•Greatlyexaggeratethecostanddelayofprobatingawill.Infact,Michigan’sprobateprocessisrelativelyuncomplicated.Michiganhasastreamlinedprocedureforsmallestates,andpermitsalessburdensomeprobateadministrationwhenthebeneficiariesconsistonlyofthedecedent’sspouse,children,orapersonalrepresentative.

• Falselyclaimthatalivingtrustwillcostlessthanprobate.InMichigan,probatefeesaremodest.

• Selltrustdocumentsthatarenotdraftedbyattorneysorarewrittenbyattorneyswhoarenotlicensedintheconsumer’sstate.

• Donottellconsumersthattheymusttransferalloftheirassetstothetrust,ortheestatewillhavetogothroughprobateanyway.

Thebottomline?Asubjectasimportantasestateplanningshouldbediscussedwithprofessionalcounsel,notwithasalesperson.Don’tbuyalivingtrustpackagethatmaynotbevalidandmaybejustawasteofmoney.Todetermineifalivingtrustisrightforyou,consultanattorneywhoisadmittedtopracticelawinMichiganandwhospecializesinestatesandtrusts.

For more information:

TheAmericanAssociationofRetiredPersons(AARP)offersthepublication,“A Consumer’s Guide to Living Trusts and Wills.”SeetheAARPwebsiteatwww.aarp.org.

TheLegalHotlineforMichiganSeniorsprovidesfreelegaladvicetoanyMichiganresidentage60orolder.ToreachtheLegalHotlineforMichiganSeniors,call1-800-347-5297.

ID Theft – Tops to Reduce Your Risk

Ichiro received a phone call from an auto finance company that said it was going to repossess his truck. Ichiro did not own a truck. He found out that someone using his name and Social Security number had applied for a car loan and had never made the payments. He also found out this same stranger had opened up two credit accounts in Ichiro’s name and charged thousands of dollars.

Whensomeoneelseusesyourname,SocialSecuritynumber,bankaccountnumber,creditcardnumber,oranyotherpersonalidentifyinginformationtocommitfraud,it’scalledidentitytheft.Theimpostermayopencreditaccounts,getadriver’slicense,orrentanapartmentinyourname,andwreakhavocwithyourfinances.Anidentitythiefmayevenrackupcriminalchargesordeclarebankruptcyinyourname.

Youshouldsuspectidentitytheftif:youreceivealetterfromabankorcreditorconfirmingyourrecentchangeofaddress–andyouhaven’tmoved;youreceiveacallorletterstatingthatyouhavebeenapprovedordeniedcreditforwhichyouneverapplied;oracollectionagencysaysitistryingtocollectonanaccountthatyoudidn’topen.

To reduce your vulnerability of becoming a victim of identity theft:

•Don’tgivepersonalinformationoverthephone,throughthemail,orontheInternetunlessyou’veinitiatedthecontact.Thieveslietotrickyouintodisclosinginformation.Don’thesitatetoendthecommunicationandifnecessaryfollow-upatanumberoraddressyouknowtobeaccurate(i.e.,thenumberyoufindinthephonebookoronyourbillingstatement).

• Treatyourmailandtrashcarefully.Placeoutgoingmailinasecurecollectionboxandpromptlyremovemailfromyourmailbox.

• Tearorshredprivaterecordsincludingchargereceipts,creditapplications,insuranceforms,physicianstatements,checksandbankstatements,expiredchargecardsthatyou’rediscarding,andcreditoffers.AlsoshredanythingthathasyourSocialSecuritynumberoranaccountnumber.

• Stopmailcreditoffersbycallingtoll-free1-888-567-8688orvisiting www.optoutprescreen.com. YouwillbeaskedtoprovideyourSocialSecuritynumbersotheconsumerreportingcompaniescanmatchyourrequestwithyourfile.Thesesystemsareautomated,soyouwon’tbeabletospeaktoanoperatorwhenyoucall.

• Carefullyandpromptlyreviewstatementsandbillsforunauthorizedchargesorfraudulentuse.Makeawrittenreportofanyproblems.

• Don’tcarryyourSocialSecuritycardornumber;insteadleaveitinasecureplace.

• Don’tleavepersonalinformationwhereotherscanseeit,particularlyifyouhaveroommates,employoutsidehelp,orarehavingworkdoneinyourhome.

• Ifyouneedtoordercheckrefills,insteadofhavingyourchecksmailedtoyou,pickthemupatyourbankorcreditunion.

• Limittheinformationonpersonalchecks.Yourmiddlename,phonenumber,SocialSecuritynumberanddriver’slicensenumberdonothavetobeonyourchecks.

6. Identity Theft

2019

www.michigan.gov/seniorbrigadewww.michigan.gov/seniorbrigade

Living Trusts

Victoria went to a seminar on living trusts. The speaker said a living trust was a way to avoid the high cost of probate, which he said would eat up a third of her estate. She paid $1,500 for a living trust package. However, she did not understand that she had to personally transfer all of her property to the trust. She missed doing the paperwork on some items, so when she died her estate had to go through probate anyway. As it turned out, the probate fee was only $500.

Inrecentyears,for-profitcompanieshaveaggressivelypromotedthesaleoflivingtruststoseniors.Theyplayonpeople’sfearsandmisconceptionsaboutprobateandestatetaxes,andpromotelivingtrustsasasuitableestate-planningtoolforeveryone.Probateisalegalprocessthatoverseesthetransferofpropertyfromadeceasedperson’sestatetothebeneficiaries.However,alivingtrustisNOTsuitableforeveryone’ssituationandlivingtrustpackagesmarketedatseminars,bypostcard,andontheInternetareusuallyawasteofmoney.Alivingtrustletsyoudirecthowpropertyyouplaceinthetrustwillbedistributedafteryourdeath.Itallowsyourtrustpropertytopasstoyourbeneficiarieswithoutgoingthroughtheprobateprocess.Livingtrustscanbeusefulifapersonownsrealestateinmorethanonestate,anticipatesthathisorherwillmightbecontested,orwantstohavesomeoneelsemanagehisorhercurrentassets.However,livingtrustsarenotthebestestateplanningchoiceformostpeopleinmostcircumstances.

Also,livingtrustsmarketedbysalespeoplemayusepre-packagedformsthatarenottailoredtotheconsumer’sindividualcircumstances,andmaynotcomplywithMichiganlawsandregulations.Thesesalespeopleoften:

•Greatlyexaggeratethecostanddelayofprobatingawill.Infact,Michigan’sprobateprocessisrelativelyuncomplicated.Michiganhasastreamlinedprocedureforsmallestates,andpermitsalessburdensomeprobateadministrationwhenthebeneficiariesconsistonlyofthedecedent’sspouse,children,orapersonalrepresentative.

• Falselyclaimthatalivingtrustwillcostlessthanprobate.InMichigan,probatefeesaremodest.

• Selltrustdocumentsthatarenotdraftedbyattorneysorarewrittenbyattorneyswhoarenotlicensedintheconsumer’sstate.

• Donottellconsumersthattheymusttransferalloftheirassetstothetrust,ortheestatewillhavetogothroughprobateanyway.

Thebottomline?Asubjectasimportantasestateplanningshouldbediscussedwithprofessionalcounsel,notwithasalesperson.Don’tbuyalivingtrustpackagethatmaynotbevalidandmaybejustawasteofmoney.Todetermineifalivingtrustisrightforyou,consultanattorneywhoisadmittedtopracticelawinMichiganandwhospecializesinestatesandtrusts.

For more information:

TheAmericanAssociationofRetiredPersons(AARP)offersthepublication,“A Consumer’s Guide to Living Trusts and Wills.”SeetheAARPwebsiteatwww.aarp.org.

TheLegalHotlineforMichiganSeniorsprovidesfreelegaladvicetoanyMichiganresidentage60orolder.ToreachtheLegalHotlineforMichiganSeniors,call1-800-347-5297.

ID Theft – Tips to Reduce Your Risk

Ichiro received a phone call from an auto finance company that said it was going to repossess his truck. Ichiro did not own a truck. He found out that someone using his name and Social Security number had applied for a car loan and had never made the payments. He also found out this same stranger had opened up two credit accounts in Ichiro’s name and charged thousands of dollars.

Whensomeoneelseusesyourname,SocialSecuritynumber,bankaccountnumber,creditcardnumber,oranyotherpersonalidentifyinginformationtocommitfraud,it’scalledidentitytheft.Theimpostermayopencreditaccounts,getadriver’slicense,orrentanapartmentinyourname,andwreakhavocwithyourfinances.Anidentitythiefmayevenrackupcriminalchargesordeclarebankruptcyinyourname.

Youshouldsuspectidentitytheftif:youreceivealetterfromabankorcreditorconfirmingyourrecentchangeofaddress–andyouhaven’tmoved;youreceiveacallorletterstatingthatyouhavebeenapprovedordeniedcreditforwhichyouneverapplied;oracollectionagencysaysitistryingtocollectonanaccountthatyoudidn’topen.

To reduce your vulnerability of becoming a victim of identity theft:

•Don’tgivepersonalinformationoverthephone,throughthemail,orontheInternetunlessyou’veinitiatedthecontact.Thieveslietotrickyouintodisclosinginformation.Don’thesitatetoendthecommunicationandifnecessaryfollow-upatanumberoraddressyouknowtobeaccurate(i.e.,thenumberyoufindinthephonebookoronyourbillingstatement).

• Treatyourmailandtrashcarefully.Placeoutgoingmailinasecurecollectionboxandpromptlyremovemailfromyourmailbox.

• Tearorshredprivaterecordsincludingchargereceipts,creditapplications,insuranceforms,physicianstatements,checksandbankstatements,expiredchargecardsthatyou’rediscarding,andcreditoffers.AlsoshredanythingthathasyourSocialSecuritynumberoranaccountnumber.

• Stopmailcreditoffersbycallingtoll-free1-888-567-8688orvisiting www.optoutprescreen.com. YouwillbeaskedtoprovideyourSocialSecuritynumbersotheconsumerreportingcompaniescanmatchyourrequestwithyourfile.Thesesystemsareautomated,soyouwon’tbeabletospeaktoanoperatorwhenyoucall.

• Carefullyandpromptlyreviewstatementsandbillsforunauthorizedchargesorfraudulentuse.Makeawrittenreportofanyproblems.

• Don’tcarryyourSocialSecuritycardornumber;insteadleaveitinasecureplace.

• Don’tleavepersonalinformationwhereotherscanseeit,particularlyifyouhaveroommates,employoutsidehelp,orarehavingworkdoneinyourhome.

• Ifyouneedtoordercheckrefills,insteadofhavingyourchecksmailedtoyou,pickthemupatyourbankorcreditunion.

• Limittheinformationonpersonalchecks.Yourmiddlename,phonenumber,SocialSecuritynumberanddriver’slicensenumberdonothavetobeonyourchecks.

6. Identity Theft

2019

www.michigan.gov/seniorbrigadewww.michigan.gov/seniorbrigade

• Keepasecuremasterlistorphotocopiesofallimportantidentificationandaccountnumbers–driver’slicense,SocialSecuritycard,creditcards,bankandutilityaccountnumbers,expirationdates,andthephonenumbersofthecustomerservicefrauddepartmentsofyourcardissuers.Keepinasafeplace – butnot yourpurse,wallet,oracar–sothatyoucan respondquicklyincaseyouridentificationis lostorstolen.

• Checkyourcreditreportseveryfourmonths.UsetheformattachedatAppendixAifyouwishtodosobymail.Youmayalsoorderreportsbyphoneat1-877-322-8228,oronlineat www.annualcreditreport.com. Youareentitledtoonefreereportfromeachofthethreecreditreportingagencieseachyear.RemembertorequestthatonlythelastfourdigitsofyourSocialSecuritynumberappearonyourreport.

• Ifyoudonotthinkyouwillneedtoapplyforcreditinthenearfuture,youmayalsowishtoconsideraddinga“securityfreeze”toyourcreditreports.A“securityfreeze”essentiallylocks,orfreezes,yourcreditreports–thatmeansthatpotentialcreditorsandotherthirdpartieswillnotbeabletogetaccesstoyourcreditreportunlessyoutemporarilyliftthefreeze.Formoreinformationonhowtoplacesecurityfreezesonyourcreditreports,pleaseseetheAttorneyGeneral’sconsumeralertentitled“Security Freeze Information for Michigan Consumers,”availableat www.michigan.gov/ag.

Ifyoudiscoverthatsomeoneisusingyouridentityfraudulently,immediatelyreportittooneoftheconsumerreportingcompanies:Equifax:1-800-846-5279;Experian1-888-397-3742;orTransUnion:1-800-680-7289.Thecompanyyoucallisrequiredtocontacttheothertwocompanies.Alsoclosetheaccountsthathavebeentamperedwithoropenedfraudulently,andfileareportwithyourlocalpolice.TheseandotherstepsaredetailedintheFederalTrade

Commission’spublication,“Take Charge: Fighting Back Against Identity Theft”availableat www.ftc.gov/idtheft.

How to Reduce Telemarketing Calls and Junk Mail

Tired of annoying telemarketing calls and junk mail filling your mailbox? Take the following steps to reduce your interruptions.

To reduce telemarketing calls:

• TheFederalTradeCommission(FTC)hasmadeiteasierforconsumerstoblocktelemarketerswiththeNationalDoNotCallRegistry.Thisprogramallowsconsumerstoregistertheirphonenumbersandbeplacedonanationallistofnumbersthattelemarketingcompaniesarenotallowedtocall.Toregisterbyphone,call1-888-382-1222,oronlineatwww.donotcall.gov. ConsumersDONOTneedtoreregistertheirphonenumbers–registrationswillnotexpire.Ifacompanytriestocontactyouaftertheinitial31dayregistrationperiod,consumersmayfileacomplaintat1-888-382-1222.

•Whenyougetatelemarketingcall,simplysay“Putmeonyour‘donotcall’list.”ThefederalTelephoneConsumerProtectionActof1991requirescompaniestokeepthislist.Yourrequestmustbehonoredforfiveyears.

•Getanunlistednumber.

To reduce junk mail:

• RegisterwiththeDirectMarketingAssociation’sMailPreferenceServicetogetoffmanynationalmailinglists.Registeronline (www.dmachoice.org) orcompletetheforminAppendixAandsenditalongwith$1checkormoneyorderpayabletotheDMA(instructionsincludedonform).Yourregistrationisgoodforthreeyears.

• Tellthecreditreportingagenciesthatyoudon’twanttoreceivepre-approvedoffersofcredit.Thosecreditcardoffersthatcomeinthemailarefromcompanieswhogetyournameandaddressfromoneofthecreditreportingagencies.Calltoll-free:1-888-567-8688.Youmayalsovisit www.optoutprescreen.com. Youmaychoosetooptoutforfiveyears,orpermanently.Youcanalsocallthesamenumberorvisitthesamewebsitetooptbackin.

• Tellmagazinestowhichyousubscribe,andcharitiestowhichyoudonate,thatyoudon’twantthemtoshareyournamewithotherbusinessesorcharities.Requestthesamefrommailordercompanies.

• Readtheprivacypoliciesofyourcreditcardcompaniesandbanks.Thepoliciesmustgiveyouan“opt-out”option,bywhichyoucantellthebanknottoshareyourpersonalinformationwithothercompanies.Thebankmaystillbeallowedtoshareyourinformationwithits“affiliate”companies.

• Don’tentersweepstakesanddrawings.Themainpurposeofmanycontestsistocompilemailinglists.Ifyouenteronecontest,youarelikelytoreceivemailingsfromothercontests.

More Help

Getmoreideasonhowtostopjunkmailandtelemarketingbyvisitingwww.michigan.gov/ag

ReadmoreaboutyourrightsundertheTelephoneCustomerProtectionActattheFederalCommunicationsCommissionwebsite,www.fcc.gov/cib/.

FormoreinformationonhowtoavoidtelemarketingfraudvisittheFederalTradeCommissionwebsite,www.ftc.gov.

TheFTC’sTelemarketingSalesRulehelpsprotectyoufromabusiveanddeceptivetelephonesalespractices.Therulerestrictscallingtimestothehoursbetween8a.m.and 9p.m.,andputsotherlimitsontelemarketers,too.Forexample:

• Telemarketersmusttellyouit’sasalescall,thenameoftheseller,andwhatthey’resellingbeforetheymaketheirpitch.

• It’sillegalfortelemarketerstolieabouttheirgoodsorservices,earningspotential,profitability,riskorliquidityofaninvestment,orthenatureofaprizeinaprize-promotionscheme.

• Beforeyoupay,telemarketersmusttellyouthetotalcostofthegoodsthey’reselling,anyrestrictionsonreceivingorusingthem,andifasaleisfinalornon-refundable.Inaprizepromotion,theymusttellyoutheoddsofwinning,thatnopurchaseorpaymentisnecessarytowin,andanyrestrictionsorconditionsonreceivingtheprize.

• It’sillegalforatelemarketertowithdrawmoneyfromyourcheckingaccountwithoutyourexpressed,verifiableauthorization.

• It’sillegalforatelemarketertocallyouifyouhaveaskednottobecalled.

2221

www.michigan.gov/seniorbrigadewww.michigan.gov/seniorbrigade

• Keepasecuremasterlistorphotocopiesofallimportantidentificationandaccountnumbers–driver’slicense,SocialSecuritycard,creditcards,bankandutilityaccountnumbers,expirationdates,andthephonenumbersofthecustomerservicefrauddepartmentsofyourcardissuers.Keepinasafeplacebutnotyourpurse,wallet,oracar–sothatyoucanrespondquicklyincaseyouridentificationislostorstolen.

• Checkyourcreditreportseveryfourmonths.UsetheformattachedatAppendixAifyouwishtodosobymail.Youmayalsoorderreportsbyphoneat1-877-322-8228,oronlineat www.annualcreditreport.com. Youareentitledtoonefreereportfromeachofthethreecreditreportingagencieseachyear.RemembertorequestthatonlythelastfourdigitsofyourSocialSecuritynumberappearonyourreport.

• Ifyoudonotthinkyouwillneedtoapplyforcreditinthenearfuture,youmayalsowishtoconsideraddinga“securityfreeze”toyourcreditreports.A“securityfreeze”essentiallylocks,orfreezes,yourcreditreports–thatmeansthatpotentialcreditorsandotherthirdpartieswillnotbeabletogetaccesstoyourcreditreportunlessyoutemporarilyliftthefreeze.Formoreinformationonhowtoplacesecurityfreezesonyourcreditreports,pleaseseetheAttorneyGeneral’sconsumeralertentitled“Security Freeze Information for Michigan Consumers,”availableat www.michigan.gov/ag.

Ifyoudiscoverthatsomeoneisusingyouridentityfraudulently,immediatelyreportittooneoftheconsumerreportingcompanies:Equifax:1-800-846-5279;Experian1-888-397-3742;orTransUnion:1-800-680-7289.Thecompanyyoucallisrequiredtocontacttheothertwocompanies.Alsoclosetheaccountsthathavebeentamperedwithoropenedfraudulently,andfileareportwithyourlocalpolice.TheseandotherstepsaredetailedintheFederalTrade

Commission’spublication,“Take Charge: Fighting Back Against Identity Theft”availableat www.ftc.gov/idtheft.

How to Reduce Telemarketing Calls and Junk Mail

Tired of annoying telemarketing calls and junk mail filling your mailbox? Take the following steps to reduce your interruptions.

To reduce telemarketing calls:

• TheFederalTradeCommission(FTC)hasmadeiteasierforconsumerstoblocktelemarketerswiththeNationalDoNotCallRegistry.Thisprogramallowsconsumerstoregistertheirphonenumbersandbeplacedonanationallistofnumbersthattelemarketingcompaniesarenotallowedtocall.Toregisterbyphone,call1-888-382-1222,oronlineatwww.donotcall.gov. ConsumersDONOTneedtoreregistertheirphonenumbers–registrationswillnotexpire.Ifacompanytriestocontactyouaftertheinitial31dayregistrationperiod,consumersmayfileacomplaintat1-888-382-1222.

•Whenyougetatelemarketingcall,simplysay“Putmeonyour‘donotcall’list.”ThefederalTelephoneConsumerProtectionActof1991requirescompaniestokeepthislist.Yourrequestmustbehonoredforfiveyears.

•Getanunlistednumber.

To reduce junk mail:

• RegisterwiththeDirectMarketingAssociation’sMailPreferenceServicetogetoffmanynationalmailinglists.Registeronline (www.dmachoice.org) orcompletetheforminAppendixAandsenditalongwith$1checkormoneyorderpayabletotheDMA(instructionsincludedonform).Yourregistrationisgoodforthreeyears.

• Tellthecreditreportingagenciesthatyoudon’twanttoreceivepre-approvedoffersofcredit.Thosecreditcardoffersthatcomeinthemailarefromcompanieswhogetyournameandaddressfromoneofthecreditreportingagencies.Calltoll-free:1-888-567-8688.Youmayalsovisit www.optoutprescreen.com. Youmaychoosetooptoutforfiveyears,orpermanently.Youcanalsocallthesamenumberorvisitthesamewebsitetooptbackin.

• Tellmagazinestowhichyousubscribe,andcharitiestowhichyoudonate,thatyoudon’twantthemtoshareyournamewithotherbusinessesorcharities.Requestthesamefrommailordercompanies.

• Readtheprivacypoliciesofyourcreditcardcompaniesandbanks.Thepoliciesmustgiveyouan“opt-out”option,bywhichyoucantellthebanknottoshareyourpersonalinformationwithothercompanies.Thebankmaystillbeallowedtoshareyourinformationwithits“affiliate”companies.

• Don’tentersweepstakesanddrawings.Themainpurposeofmanycontestsistocompilemailinglists.Ifyouenteronecontest,youarelikelytoreceivemailingsfromothercontests.

More Help

Getmoreideasonhowtostopjunkmailandtelemarketingbyvisitingwww.michigan.gov/ag

ReadmoreaboutyourrightsundertheTelephoneCustomerProtectionActattheFederalCommunicationsCommissionwebsite,www.fcc.gov/cib/.

FormoreinformationonhowtoavoidtelemarketingfraudvisittheFederalTradeCommissionwebsite,www.ftc.gov.

TheFTC’sTelemarketingSalesRulehelpsprotectyoufromabusiveanddeceptivetelephonesalespractices.Therulerestrictscallingtimestothehoursbetween8a.m.and 9p.m.,andputsotherlimitsontelemarketers,too.Forexample:

• Telemarketersmusttellyouit’sasalescall,thenameoftheseller,andwhatthey’resellingbeforetheymaketheirpitch.

• It’sillegalfortelemarketerstolieabouttheirgoodsorservices,earningspotential,profitability,riskorliquidityofaninvestment,orthenatureofaprizeinaprize-promotionscheme.

• Beforeyoupay,telemarketersmusttellyouthetotalcostofthegoodsthey’reselling,anyrestrictionsonreceivingorusingthem,andifasaleisfinalornon-refundable.Inaprizepromotion,theymusttellyoutheoddsofwinning,thatnopurchaseorpaymentisnecessarytowin,andanyrestrictionsorconditionsonreceivingtheprize.

• It’sillegalforatelemarketertowithdrawmoneyfromyourcheckingaccountwithoutyourexpressed,verifiableauthorization.

• It’sillegalforatelemarketertocallyouifyouhaveaskednottobecalled.

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The 2011 Shopping Reform and Modernization Act

After putting the groceries in the trunk of her car, Marianna sat down in the driver’s seat to take a closer look at the sales receipt. She noticed that she paid 89 cents each for two cans of corn instead of the sale price of 69 cents. She distinctly recalls seeing the shelf tag that displayed 69 cents. Marianna went back into the store and at the service desk received a refund of 20 cents on each can of corn, AND she got an additional amount of ten times the difference on one can of corn. The total she received was $2.40.

EffectiveSeptember1,2011,Michigan’sItemPricingActwasreplacedbytheShoppingReformandModernizationAct(“ScannerLaw”).WhilethenewScannerLawretainsmanyprovisionsoftheformerPricingandAdvertisingofConsumerItemsAct(“ItemPricingAct”),themostfundamentalchangeisthatretailersarerequired

todisplaythepriceofitemsofferedforsaleinthestoreattheplacewheretheitemislocated,butarenolongerrequiredtoindividuallymarkthepriceontheitemitself.

Mandatory item pricing has been replaced by some form of price display. Itemsonstoreshelvesarenolongerrequiredtohaveindividualpricetagsonthem. Instead,pricesofitemsinastoremustbe“displayed”,whichcanbebyashelfsign,electronicreader,individualpricetag,oranyothermethodthat:

(1)clearly and reasonablyshowsthepriceoftheitemontheshelftoconsumerswheninthestore;

(2)at the place where the item is located.Thesamesmalllistofitemsthatwereexemptfromitempricingundertheoldlawarestillexemptfromthenewpricedisplayrequirement(itemssoldinvendingmachines,liveplants,unpackagedfood,motorvehicleparts,animals,andothers).

What is a clear and reasonable price display? Thenewlawdoesnotdefineorstatehowapricemustbedisplayedtosatisfytherequirementthatit“clearlyandreasonably”conveyspriceinformation.Theonlyexpressmandateinthenewlawrelatestoplacement:thepricemustbeclearlyconveyedtoaconsumerinthestoreattheplacewheretheitemislocated.Acommonsensemeaningof“clearlyandreasonably”wouldrequirethepricetobedisplayedinsuchsize,color,contrast,andlocationthatareasonablepersonwouldreadilynoticeandunderstand.Reportastore’sfailuretoproperlydisplaythepriceofanitembycontacting:

TheDepartmentofAgriculture andRuralDevelopment Weights&MeasuresSection 940VentureLane Williamston,MI48895 Phone:1-517-655-8202

Ifthepriceofanitemontheshelfisnotapparenttoyou,itprobablyisn’tapparenttoothershopperseither.

TheDepartmentofAgricultureandRuralDevelopmentisresponsibleforinvestigatingwhetherthestorehasviolatedthelawbyfailingtoproperlydisplayprices.Violationsofthelawarepunishablebyafineofnotmorethan$1,000forthefirstviolation,and$5,000forthesecondandanysubsequentviolation.TheAttorneyGeneralhasenforcementauthoritytofilealawsuitagainstasellerforviolationsofthelaw.

Thenewlawprovidesforpenaltiesinthesamemannerastheoldlaw.If an automatic checkout system (scanner) charges you more than the displayed price of an item, and:

1)thetransactionhasbeencompleted,and2)youhaveareceiptindicatingtheitem purchasedandthepricechargedforit.

Then:Youmustnotifythesellerthatyouwereovercharged,within30daysofthetransaction,eitherinpersonorinwriting.Withintwodaysof

receivingyournotice,thesellermaychoosetorefundyouthedifferencebetweentheamountchargedandthepricedisplayedplusa“bonus”oftentimesthedifference,withaminimumof$1.00andamaximumof$5.00.Ifthesellerrefusestogiveyouboththerefundandthebonus,youmaybringalawsuittorecoveryouractualdamagesor$250.00,whicheverisgreater,plusreasonableattorneyfeesupto$300.00.Ifyoupurchaseseveralidenticalitemsatonceandwereoverchargedoneach,youmaycollectthebonusonlyonce,butyouareentitledtotherefundofthedifferenceforeachidenticalitem.

Additional information regarding the law is available in the Attorney General’s consumer alert “Michigan’s New Scanner Law, the 2011 Shopping Reform and Modernization Act.” The alert and a wallet size “Scanner Error Bill of Rights” card are available on the Attorney General’s website (www.michigan.gov/ag) or by calling the Consumer Protection Division, 1-877-765-8388.

7. Michigan’s New Scanner Law

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www.michigan.gov/seniorbrigadewww.michigan.gov/seniorbrigade

The 2011 Shopping Reform and Modernization Act

After putting the groceries in the trunk of her car, Marianna sat down in the driver’s seat to take a closer look at the sales receipt. She noticed that she paid 89 cents each for two cans of corn instead of the sale price of 69 cents. She distinctly recalls seeing the shelf tag that displayed 69 cents. Marianna went back into the store and at the service desk received a refund of 20 cents on each can of corn, AND she got an additional amount of ten times the difference on one can of corn. The total she received was $2.40.

EffectiveSeptember1,2011,Michigan’sItemPricingActwasreplacedbytheShoppingReformandModernizationAct(“ScannerLaw”).WhilethenewScannerLawretainsmanyprovisionsoftheformerPricingandAdvertisingofConsumerItemsAct(“ItemPricingAct”),themostfundamentalchangeisthatretailersarerequired

todisplaythepriceofitemsofferedforsaleinthestoreattheplacewheretheitemislocated,butarenolongerrequiredtoindividuallymarkthepriceontheitemitself.

Mandatory item pricing has been replaced by some form of price display. Itemsonstoreshelvesarenolongerrequiredtohaveindividualpricetagsonthem. Instead,pricesofitemsinastoremustbe“displayed”,whichcanbebyashelfsign,electronicreader,individualpricetag,oranyothermethodthat:

(1)clearly and reasonablyshowsthepriceoftheitemontheshelftoconsumerswheninthestore;

(2)at the place where the item is located.Thesamesmalllistofitemsthatwereexemptfromitempricingundertheoldlawarestillexemptfromthenewpricedisplayrequirement(itemssoldinvendingmachines,liveplants,unpackagedfood,motorvehicleparts,animals,andothers).

What is a clear and reasonable price display? Thenewlawdoesnotdefineorstatehowapricemustbedisplayedtosatisfytherequirementthatit“clearlyandreasonably”conveyspriceinformation.Theonlyexpressmandateinthenewlawrelatestoplacement:thepricemustbeclearlyconveyedtoaconsumerinthestoreattheplacewheretheitemislocated.Acommonsensemeaningof“clearlyandreasonably”wouldrequirethepricetobedisplayedinsuchsize,color,contrast,andlocationthatareasonablepersonwouldreadilynoticeandunderstand.Reportastore’sfailuretoproperlydisplaythepriceofanitembycontacting:

TheDepartmentofAgriculture andRuralDevelopment Weights&MeasuresSection 940VentureLane Williamston,MI48895 Phone:1-517-655-8202

Ifthepriceofanitemontheshelfisnotapparenttoyou,itprobablyisn’tapparenttoothershopperseither.

TheDepartmentofAgricultureandRuralDevelopmentisresponsibleforinvestigatingwhetherthestorehasviolatedthelawbyfailingtoproperlydisplayprices.Violationsofthelawarepunishablebyafineofnotmorethan$1,000forthefirstviolation,and$5,000forthesecondandanysubsequentviolation.TheAttorneyGeneralhasenforcementauthoritytofilealawsuitagainstasellerforviolationsofthelaw.

Thenewlawprovidesforpenaltiesinthesamemannerastheoldlaw.If an automatic checkout system (scanner) charges you more than the displayed price of an item, and:

1)thetransactionhasbeencompleted,and2)youhaveareceiptindicatingtheitem purchasedandthepricechargedforit.

Then:Youmustnotifythesellerthatyouwereovercharged,within30daysofthetransaction,eitherinpersonorinwriting.Withintwodaysof

receivingyournotice,thesellermaychoosetorefundyouthedifferencebetweentheamountchargedandthepricedisplayedplusa“bonus”oftentimesthedifference,withaminimumof$1.00andamaximumof$5.00.Ifthesellerrefusestogiveyouboththerefundandthebonus,youmaybringalawsuittorecoveryouractualdamagesor$250.00,whicheverisgreater,plusreasonableattorneyfeesupto$300.00.Ifyoupurchaseseveralidenticalitemsatonceandwereoverchargedoneach,youmaycollectthebonusonlyonce,butyouareentitledtotherefundofthedifferenceforeachidenticalitem.

Additional information regarding the law is available in the Attorney General’s consumer alert “Michigan’s New Scanner Law, the 2011 Shopping Reform and Modernization Act.” The alert and a wallet size “Scanner Error Bill of Rights” card are available on the Attorney General’s website (www.michigan.gov/ag) or by calling the Consumer Protection Division, 1-877-765-8388.

7. Michigan’s New Scanner Law

2423

www.michigan.gov/seniorbrigadewww.michigan.gov/seniorbrigade

Consumer Protection Division, Michigan Attorney General’s Office website:www.michigan.gov/ag

General consumer complaints:Tofileacomplaintagainstabusinessortocheckabusiness’scomplainthistory• 8:30a.m.to4:30p.m.,Monday-Friday• 1-517-373-1140• Toll-free:1-877-765-8388• Fax:1-517-241-3771

Other Locations:

Franchise Section, Consumer Protection Division, Michigan Attorney General’s OfficeToinquireintosellersoffranchises,businessopportunities,ormulti-levelmarketingprograms.• 1-517-373-7117• Toll-free:1-877-765-8388

Charitable Trust Section, Consumer Protection Division, Michigan Attorney General’s OfficeToinquireintoacharitableorganization’sregistrationinMichigan.• 1-517-373-1152• Toll-free:1-877-765-8388

Office of Financial and Insurance Regulation, Department of Licensing and Regulatory AffairsToinquireintolendersandsellersofsecurities,orforquestionsaboutmortgagesandmortgagelenders.• 1-517-373-0220• Toll-free:1-877-999-6442•www.michigan.gov/ofir

Legal Hotline for Michigan SeniorsTogetlegaladviceoverthephone,forMichiganconsumersovertheageof60.• Toll-free:1-800-347-5297

Youhavetherighttogetafreecopyofyourcreditfiledisclosure,commonlycalledacreditreport,onceevery12months,fromeachofthenationwideconsumercreditreportingcompanies–Equifax,Experian,andTransUnion.Tomaximizeyourprotectionagainstfraudulentactivity,orderonereportfromadifferentcreditreportingcompanyeveryfourthmonth.

Orderyourfreecreditreportanyoneofthreeways:•ByMail CompletetheAnnualCreditReportRequestFormavailableonlineat theonlytrulyfreecreditreportwebsite: https://www.annualcreditreport.com/cra/requestformfinal.pdf.

•ByTelephone Call1-877-322-8228(tollfree).

•Online www.annualcreditreport.com Caution:Misspellingthissiteorusinganothersitewithsimilarwordswilltakeyou toasitethatwilltryandsellyousomethingorcollectyourpersonalinformation.

Thesearetheonlywaystogetfreecreditreportswithoutanystringsattached. The“free”creditreportsadvertisedbyothersourcesarenotreallyfree!

WerecommendthatwhenyouorderyourequestthatnomorethanthelastfourdigitsofyourSocialSecuritynumberappearoncopiesofyourcreditreport. Ifyouareavictimofidentitytheft,youareentitledtoplaceafraudalertonyourfileandtoreceivecopiesofyourcreditreportfromeachofthethreecreditreportingcompaniesfreeofcharge,regardlesswhetheryouhavepreviouslyorderedyourfreeannualreports.

Helpful Resources Free Annual Credit Reports – Order Yours Today

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www.michigan.gov/seniorbrigadewww.michigan.gov/seniorbrigade

Consumer Protection Division, Michigan Attorney General’s Office website:www.michigan.gov/ag

General consumer complaints:Tofileacomplaintagainstabusinessortocheckabusiness’scomplainthistory• 8:30a.m.to4:30p.m.,Monday-Friday• 1-517-373-1140• Toll-free:1-877-765-8388• Fax:1-517-241-3771

Other Locations:

Franchise Section, Consumer Protection Division, Michigan Attorney General’s OfficeToinquireintosellersoffranchises,businessopportunities,ormulti-levelmarketingprograms.• 1-517-373-7117• Toll-free:1-877-765-8388

Charitable Trust Section, Consumer Protection Division, Michigan Attorney General’s OfficeToinquireintoacharitableorganization’sregistrationinMichigan.• 1-517-373-1152• Toll-free:1-877-765-8388

Office of Financial and Insurance Regulation, Department of Licensing and Regulatory AffairsToinquireintolendersandsellersofsecurities,orforquestionsaboutmortgagesandmortgagelenders.• 1-517-373-0220• Toll-free:1-877-999-6442•www.michigan.gov/ofir

Legal Hotline for Michigan SeniorsTogetlegaladviceoverthephone,forMichiganconsumersovertheageof60.• Toll-free:1-800-347-5297

Youhavetherighttogetafreecopyofyourcreditfiledisclosure,commonlycalledacreditreport,onceevery12months,fromeachofthenationwideconsumercreditreportingcompanies–Equifax,Experian,andTransUnion.Tomaximizeyourprotectionagainstfraudulentactivity,orderonereportfromadifferentcreditreportingcompanyeveryfourthmonth.

Orderyourfreecreditreportanyoneofthreeways:•ByMail CompletetheAnnualCreditReportRequestFormavailableonlineat theonlytrulyfreecreditreportwebsite: https://www.annualcreditreport.com/cra/requestformfinal.pdf.

•ByTelephone Call1-877-322-8228(tollfree).

•Online www.annualcreditreport.com Caution:Misspellingthissiteorusinganothersitewithsimilarwordswilltakeyou toasitethatwilltryandsellyousomethingorcollectyourpersonalinformation.

Thesearetheonlywaystogetfreecreditreportswithoutanystringsattached. The“free”creditreportsadvertisedbyothersourcesarenotreallyfree!

WerecommendthatwhenyouorderyourequestthatnomorethanthelastfourdigitsofyourSocialSecuritynumberappearoncopiesofyourcreditreport. Ifyouareavictimofidentitytheft,youareentitledtoplaceafraudalertonyourfileandtoreceivecopiesofyourcreditreportfromeachofthethreecreditreportingcompaniesfreeofcharge,regardlesswhetheryouhavepreviouslyorderedyourfreeannualreports.

Helpful Resources Free Annual Credit Reports – Order Yours Today

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Annual Credit Report Request Form Direct Marketing Association Mail Preference Form

PLEASE DO NOT SEND THIS FORM TO THE ATTONREY GENERAL’S OFFICE

AppendixA

28

AppendixA

Annual Credit Report Request Form Direct Marketing Association Mail Preference Form

PLEASE DO NOT SEND THIS FORM TO THE ATTONREY GENERAL’S OFFICE

AppendixA

27

AppendixA

Annual Credit Report Request Form Notes and Other Important Information

PLEASE DO NOT SEND THIS FORM TO THE ATTONREY GENERAL’S OFFICE

AppendixA

27

Cost of printing 15,000 copies: $13,562.09 or $.90 each.