Consumer Blog

AG Nixon's latest consumer alert reminds us that home repair ripoffs become one of the top issues as spring and summer approach. This is the season when a lot of us start looking to have repairs done on our homes. And believe me, the crooks are ready for you. We have lots of tips in the above-linked news release, but the biggies are don't do business with door-to-door contractor salesmen and don't pay full price up front. Wait until the job is done to pay the full amount.

Also, make sure you get your agreement in writing. Some contractors don't offer written contracts, but you can draw up your own using our home repair worksheet. This PDF document tells you what to include in your contract.

As you can see from 2007's top 10 consumer complaints, home repair is a big one - always is.

We have blogged here many times that AG Nixon wants to see automated political calls outlawed for people on the Missouri No Call list. So far the state legislature has not made that change. These are also known as robo calls.

But there's a national group encouraging politicians to take a no robo call pledge. Not going so well so far - only four candidates nationwide have signed up.

I often get questions from consumers like "How do I know if a charity solicitor is legit?"

Let's do a Charitable Giving 101. Here are our tips:

• Look into their finances at our Check-a-Charity site. You can search or see the full alphabetical list. There are more than 800 charities in our database. We have encouraged every charity that's legally registered in Missouri to participate. So if they're not in there, they are either uninterested or unregistered. Either is a red flag.
• We agree that at least 65% of a charity's money should be spent on its programs, rather than overhead like fundraising, salaries, bills, rent, etc. Never make a decision during a telemarketing call - always ask for written information by mail.
• Never give your credit card or bank info to a telemarketer who has called you. He or she could be an ID thief.
• Don't be pressured or guilted into a decision. It's your money! Only give when you're comfortable.

A good solution to all this: Plan your donations annually. Figure out how much you'll give and to whom. This way you're not trying to respond on the spot to phone calls and mailings.

We have a popular flyer we hand out at fairs and other public events that explains Missouri's No Call law and the rights consumer have in dealing with telemarketers. Some highlights:

• It's illegal for telemarketers to call you if you have asked them not to. If they do, you can file a complaint with our office.
• Calls can be made only between 8 a.m. and 9 p.m.
• Before making a pitch, they must first tell you it's a sales call, the seller's name and what's being sold.
• It's illegal for telemarketers to misrepresent information.
• It's illegal for them to withdraw money from your bank account without your express, verifiable authorization.

As for bullet point #1, here's what to say to keep a telemarketer from calling again:

"I do not want your company calling me back. Now that I have told you this, you will be in violation of the law, and I will file a complaint with the Missouri Attorney General's office if you call me again."

If not, you may see it at some point. Washington Post has an article about the increasing about of text-message advertising being generated. And unlike spam in your inbox, or telemarketing calls to your home, these text-message spams can cost minutes against your plan.

AG Nixon has been calling on the state legislature to strengthen the No Call list for years, but no dice yet. He wants, among other things, cell phones to be added to the No Call list. Under the law, we can only take residential landline phones. If we could get that change, it could block unsolicited text-message ads.

As you read in yesterday's post, AG Nixon has taken legal action against several companies that send out those extended warranty offers in the mail, claiming your car's factory warranty is about to expire.

Here is a column by a consumer reporter at MSNBC about these companies. While this is a national problem, we are discovering that for some reason, many of the companies in this business are based in the St. Louis area. Our sweep of lawsuits, BTW, was called Operation Taken for a Ride.

Do you get much junk mail? Pre-approved credit card offers? Most consumers don't know you can opt out of a lot of that stuff.

Observe:

For junk mail, go to the Direct Marketing Association site or write: DMA Mail Preference Service PO Box 643 Carmel, NY 10512

For pre-approved offers of credit and insurance, you can opt out online or by callng 1-888-5OPTOUT (567-8688).

If this is any indication, we ran an anti-mail fraud project last year called Senior Sting 2006. During the month of May, 300 senior citizens from across Missouri kept all their junk mail. It amounted to 8,000 pieces.

Friday, our office announced the total restitution recovered through informal mediation efforts this year by the Consumer Protection Division. Our office recouped, returned or otherwise saved consumers $9.2 million in 2007.

While this is a record-setting amount, we would like to remind everyone of a few tips that can be helpful to avoid getting scammed in 2008.

1. Do your research before investing. This applies to all major investments, such as work on your home, a car purchase, refinanced loans and other important financial decisions.
2. Also check the company's track record for consumer complaints; our website as well as the credit report regularly. If this is something you don't already do, make it a New Year's resolution. Many problems can be corrected in a timely manner simply by bringing the issue to someone's attention. For example, there are forms to fill out with your bank or credit card company if you detect fraudulent charges, but they must usually be completed within 2 months of receiving your statement.
3. Brush up on common scams to avoid such as Nigerian letters and overpayment scams. The National Consumers League also has sponsored a great website with quizzes to test your knowledge.

As always, if you have questions, you can call our Consumer Hotline at 800-392-8222, or file a complaint.

AG Nixon sent out a consumer alert today on these items, which you're likely to come across as you're out at the stores doing your holiday shopping.

We have FAQ page for rebates in our consumer encyclopedia. We also have a consumer publication on warranties, which a nice explanation of the difference between a warranty and a service contract. To be technical, what we call extended warranties are actually service contracts.

Mike Hendricks of the KC Star has re-released a column from a few years ago. The apparently true story of a telemarketer asking to speak to his dog. Needless to say, the screening procedures at soliciting companies leaves a lot to be desired.

Have you heard the story of the company that issued a credit card to a tree?

Some important reminders: you can opt out of junk mail and pre-approved credit card offers by checking out this recent blog post. And you can sign up for the Missouri No Call list or file complaints here.

A couple of days ago, Travis warned us that people in the Springfield area should be aware of a bank scam. MO consumers were receiving automated messages that were supposedly from Empire Bank.

Now, people in Central-Missouri are also receiving calls. These recordings, similar to what the consumers in Springfield have reported, state that there is a problem with their account at Central Bank and they are directed to a fake website. Please be aware of any such phishing scams in your area.

We appreciate all of you who let us know of these scams--not just by filing a complaint or calling our hotline, 1-800-392-8222--but also by commenting on our blog, like these readers:

One reader shared-- I Live in Jefferson City, MO and just received a call very similar to this from "Central Bank Services". Recorded message told me to go to a specific website to fix my account. We don't even have an account with Central Bank. So everyone be aware.

Another-- I live in Columbia and just received the same phone call. Everyone beware!

AG Nixon sent out a consumer alert this week with some suggestions for giving to charities this season. The biggest thing I can say is: remember this is your money, don't even think about giving to someone just because they pressure or guilt you.

A new survey says when you give to a charity during a telemarketing call, just one-third of your donation is actually making it to the charity. The rest? Goes to the telemarketer.

AG Nixon's Check a Charity Web site can help you determine how charities handle their finances. For any charity you find in our database, we'll tell you how much they spend on overhead v. the actually program service you're hoping to help. Rule of thumb: we recommend you give to those that spend at least 65% of their money on program services. A recent blog post summarized our advice on charitable giving.

Recently, the Kansas City Star reported that spammers are targeting more than just your email. The same e-spam messages that fill up your inbox can be sent to your mobile phone via text messaging. Many cell-phone plans charge for text messages that you send, as well as receive, meaning that consumers could be charged per pesky message about puppy scams, timeshares, and foreign lottery scams.

While many consumers are just now receiving this type of spam, it isn't a new issue. For years, MO AG Nixon has backed legislation that would protect mobile phones under the umbrella of the No Call List. Efforts to pass these bills have failed in MO, but AG Nixon will renew his efforts on this issue in the coming legislative session.

In the time being, some cell-phone companies have vowed to correct the matter by filtering as many of these messages as possible before they reach their customers' phone.

The Federal Trade Commission made this announcement to Congress this week. The original plan was that you'd have to re-register your listing every five years. But now, if you're registered on the national list, you're all set. As we mentioned a couple of weeks ago, registration on the Missouri No Call list is also permanent. You would only need to mess with it again if you change your phone number. If you move but keep your number, you're still covered.