Archive for March, 2008

Collection Agency Scams Defunct Magazine Company’s Customers

Filed March 31st, 2008 Julie Ann Fidler

Just when you think you’ve heard it all as far as collection agency scams go, the folks at Consumer Affairs always break something new. This time it’s collection agencies trying to collect for debts (some not even owed) for a magazine peddling company the FTC put out of business five years ago for fraudulent business […]

FTC Targets Prepaid Calling Card Fraud

Filed March 31st, 2008 joshua

The Federal Trade Commission says CTA has been ripping off consumers of its prepaid calling cards, The Press of Atlantic City reports. The FTC says CTA was advertising a certain amount of minutes per phone card, but was falling short of that advertised amount. The regulatory agency says CTA is one of the largest calling […]

CPSC Recalls Rockers That Injured Children

Filed March 28th, 2008 joshua

The Consumer Product Safety Commission (CPSC) is recalling about 122,000 plush rocker toys because they could cause children to tip and fall. CPSC says the Rock N Ride Plush Rocker Toys’ base can become unstable, which allows the rocking chair to tip back and forth, which poses a fall hazard to children. At least 35 […]

FTC Settles TJ Maxx Security Breach

Filed March 28th, 2008 joshua

Retailers TJ Maxx and Marshalls have agreed to have its information audited after their millions of customers’ credit card numbers may have been hacked. By doing so, the retailer has settled with the Federal Trade Commission charges it “failed to provide reasonable and appropriate security for sensitive consumer information” according to the Associated Press and […]

Home Warranty Scams – American Home Shield Exposed by Consumer Affairs

Filed March 27th, 2008 Julie Ann Fidler

A Consumer Affairs article yesterday put a spotlight on home warranty scams. Or, if they’re not outright scams, they’re pretty close — because home warranty offers aren’t always what they seem. As David Wood of Consumer Affairs wrote, “Not to be confused with a builder’s warranty, a so-called home warranty — actually a service contract […]

President Taps New FTC Head

Filed March 27th, 2008 joshua

George Bush is appointing William Kovacic as the new chairman of the Federal Trade Commission, Bloomberg News is reporting. He will replace Deborah Majoras, who is taking a job with Procter & Gamble Co. Kovacic was previously under the employ of the FTC during Bush’s first term as the agency’s general counsel, but left to […]

California Mortgage Fraud “Stole” Houses

Filed March 26th, 2008 joshua

More details have come to light on the Southern California-based home mortgage fraud scheme we reported yesterday. According to federal indictments against Charles Head, his brother Jeremy and 17 others, the group used practices known as equity stripping and foreclosure rescue pitches to steal more than $12.6 million and fraudulently obtain titles to more than […]

“Operation Homewrecker” Targets Mortgage Fraud

Filed March 25th, 2008 joshua

U.S. officials in Sacramento, Calif., have announced charges against 19 people for targeting homeowners facing foreclosure and stealing more than $12.6 million through illegal mortgage and loan activities, Reuters reports. This crackdown was dubbed “Operation Homewrecker” and is being touted as the largest such mortgage fraud bust in the nation’s history. Three licensed mortgage brokers […]

FTC Reports on Debt Collection Fraud and Abuse for 2007

Filed March 24th, 2008 Julie Ann Fidler

According to the Federal Trade Commission Annual Report 2008: Fair Debt Collection Practices Act, the number of complaints about debt collectors went up “in absolute terms and as a percentage of all complaints” compared to the year before. Last year, the FTC received 70,951 complaints about third-party debt collectors, compared to 69,249 in 2006. Not […]

Another State Passes Mortgage Fraud Laws

Filed March 21st, 2008 joshua

The Washington Post reports Maryland’s House of Delegates has passed bills creating a criminal statute allowing authorities to prosecute mortgage fraud and prohibiting “foreclosure rescue transactions”. Foreclosure rescue transactions occur when homeowners are tricked into signing over residencies to third parties. The bill to prohibit them passed the Maryland House 135-1. The mortgage fraud bill, […]