The Car Allowance Rebate System And Scams to Avoid
June 30, 2009 by Erik Folgate
Filed under Cars, Scam Alert
The Car Allowance Rebate System was signed into law last week, but there are already scammers out there trying to phish information from consumers looking to trade in their old cars. Here are some things you need to know to avoid these scams:
- If you come across any website that uses the term “cash for clunkers”, it’s not official by any means.
- The program will not get started until late July or early August, because regulators have up to 30 days to figure out a system for distributing and collecting vouchers.
How to Spot A Loan Modification Scam
April 14, 2009 by Erik Folgate
Filed under Scam Alert
I live in Florida, which was one of the hardest hit states by the bursting of the housing bubble. If you live in Florida, Nevada, Arizona, California, New York, or other states that experienced a rapid downturn in the housing market, make sure you don’t get sucked in by loan modification scammers.
- If the loan modification company wants money up front, it’s probably a scam. In the state of Florida, it is now illegal for non-lawyers to take money up front for loan modification services.
The $50 Billion Dollar Reason To Manage Your Own Money
December 15, 2008 by Erik Folgate
Filed under Investing, Scam Alert
Over the weekend, Bernard Madoff of Madoff Funds, was arrested for securities fraud, and he has admitted to swindling hundreds to thousands of investors out of $50 billion dollars over an undisclosed period of time. Madoff has been in business managing investments since 1960, but he also ran a hedge fund that was basically a Ponzi scheme. A ponzi scheme is a scam where early investors are paid investment returns from later investor’s money. Eventually, all of the money is gone and everyone loses out. There is never enough money to support the money paid back to earlier investors. Madoff’s hedge fund was boasting huge returns on investment, and this is how he attracted so many investors, including big names like Steven Spielberg.
Watch Out For Illegitimate Multi-Level Marketing Programs
August 12, 2008 by Erik Folgate
Filed under Extra Income, Scam Alert
I was listening to the Clark Howard radio show today, and he was talking about fly-by-night MLM programs that pop up during economic slowdowns. They prey on people looking to quickly make extra money. There are plenty of legitimate multi-level marketing programs out there, but for every good one, there are at least 10 bad ones.
What is a Multi-Level Marketing Program?
It’s a business model with two levels. You make money by selling a product/service and you make money by recruiting more people to sell a product/service. Think Amway. Amway is the most famous legitimate multi-level marketing program.
Watch Out For Financial Scams Targeting Military Families
July 16, 2008 by Erik Folgate
Filed under Scam Alert
I read an article in the latest Kiplinger’s magazine today about military families getting ripped off by companies such as First Command Financial and American Amicable Life Insurance. These people are serving our country by laying their life on the line for our freedom, and there are scum-of-the-earth companies out there trying to take advantage of their steady paycheck. And it’s not like our military is making a killing, which is a whole other story in itself. The fact that they get paid peanuts for the work they perform every day, is criminal in itself. If you’ve served in the military and you are on leave or were recently discharged, watch out for the vultures that love to surround the military bases.
Exposing The Universal Default Provision In Credit Cards
July 8, 2008 by Erik Folgate
Filed under Credit and Debt, Scam Alert, Spending and Saving
Some of you don’t like the fact that I don’t like credit cards. One of my regular readers criticized me for putting too much blame on credit cards. He thinks that the lack of personal responsibility is what causes people to misuse credit cards, not the credit card itself. I agree that personal responsibility is the key to sound money management, but credit cards are a horrible financial product. The universal default provision, which many of you are familiar with, is the best reason why it is such a horrible product.
What is the universal default provision?
Watch Out For Mortgage and Housing Scams
June 22, 2008 by Erik Folgate
Filed under Scam Alert
We are continuing to see the fall-out of the housing slump which means more foreclosures, falling home values, and more financially distressed homeowners. Scam artists love to prey on people that are in a tough financial situation. It is only fitting that scammers are trying to capitalize off of the housing crisis. Here are some housing scams that you need to watch out for:
Consumer Beware of Professional Service Providers
June 4, 2008 by Erik Folgate
Filed under Consumer News, Scam Alert, Spending and Saving
We all know about used car salesmen, auto mechanics, plumbers, and contractors that try to pull a fast one on us by selling us products and services that we may not need. Every time i bring my car in for service, there’s something new that’s “allegedly” wrong with it. In my day job, I deal with plumbers and restoration contractors all day long. Some are very honest and others will milk you for everything they can get away with. It’s pretty well-known that you should be cautious when dealing with these people. However, it’s not as well-known to be cautious when going to see your doctor, dentist, veterinarian, or any other professional with letters after their name. We as responsible consumers, need to be more careful wtih the professionals that we see, because your best interest may not always be on their mind.
Stay Away From These Two Scams
May 3, 2008 by Erik Folgate
Filed under Consumer News, Scam Alert
HITMAN BRIBE SCAM
This is one of the most ridiculous scams I’ve heard about in a long time. Apparently, it started popping up in late 2006 and early 2007, but this is the first time I have heard about it. Which means, it hasn’t been too effective. However, I think it’s still worth bringing to your attention, because it could land in the right person’s inbox and severely scare them into doing something stupid.
It’s called the “Hitman Bribe” email scam. For two examples of the email you might receive, click here.
Watch Out For Economic Stimulus Rebate Scams
February 6, 2008 by Erik Folgate
Filed under Scam Alert
According to the AP, via CNN Money, there’s already scammers out there trying to trick you into giving out personal information, claiming to be the IRS. They are telling people that they need to verify their personal information in order for them to receive the economic stimulus plan rebate. These people are the scum of the earth, aren’t they? And you can bet that they are targeting the elderly and college students. College students are usually naive, and they feel that the elderly are more vulnerable and gullible to give out personal information. Someone could be stealing your grandmother’s identity and wiping out her life savings as we speak.
