Georgia’s older adults and seniors need to know how to avoid scams and fraud in 2022. After all, according to Attorney General Chris Carr, scammers have their sights set on the elderly.
“Supporting our older Georgians is an integral part of our consumer protection mission,” Carr said in a letter to the Georgia Consumer Protection Division. “Older adults face unique challenges that can be difficult to navigate. They are often targeted by scammers who view them as particularly vulnerable to fraudulent and deceptive schemes.”
Here are the top scams the state’s consumer protection division wants you to know about.
Charity
The Georgia Consumer Protection Division said that before you give to charity, it is important to make sure the charity is actually legitimate. Scammers may disguise their scheme as a phony charity in hopes of stealing some of your hard-earned cash.
Look out for these red flags:
- High-pressure sales tactics, including attempts to play on your emotions for a donation
- Unsolicited emails, particularly from people claiming to be victims
- Demands to donate via cash or wire transfer
- New charities that only surface directly after a recent tragedy
- Charities that use names suspiciously similar to better-known organizations
If a charity you are considering donating to has raised a red flag, the consumer protection division suggests visiting these websites to verify the charity’s authenticity before you spend any money. And, never give your financial information to solicitors over the phone.
Home repairs
Home repair scammers target older adults, often going door-to-door to solicit business in hopes of finding a victim to overcharge for shoddy work. Here are the top tips to avoid being taken advantage of by a pushy repairman.
- Greet door-to-door solicitors with caution, especially if they insist that you pay for their work up front in full.
- Before reaching out to a repair service when your home sustains damage, first contact your insurance company. The home repairs may be covered under your insurance policy.
- If you do decide to seek out a home repair service, first ask your friends and neighbors for referrals.
- Before choosing a contractor for your repairs, get at least three estimates in writing from different companies.
- Check with the Better Business Bureau for complaints filed with a contractor’s company before selecting a repair service.
- Never pay for repairs in full before they are completed and you are satisfied with the results.
- Always insist that a contract for the work to be performed be in writing, including start and completion dates.
Funerals
Funeral arrangements can set you back thousands of dollars. Unfortunately, this is an emotional time, and some providers will try to upsell their clients. The law, however, is on your side in this case.
- Funeral homes are required by law to provide an itemized General Price List during your initial visit, before you begin looking at any products or services.
- Funeral homes must also show separate casket and burial container price lists.
- Burial vaults and grave liners are not required by law, neither is embalming.
- Funeral homes can not refuse to handle caskets or urns that you provide from elsewhere or charge you for their usage.
- All veterans, their spouses and dependent children are all entitled to a free burial at a national cemetery. You can contact the Department of Veterans Affairs (VA) for more information.
Identity Theft
From unfamiliar charges on you credit card to calls from debt collectors about purchases you never made, identity theft hits you where it hurts — your credit, your wallet and your piece of mind. Here is what to do if you are concerned that you have fallen victim to identity theft.
- Contact your credit card company, bank or any other financial institution that you fear has been affected by the identity theft and ask that your accounts be frozen and your credit cards be replaced.
- Contact these credit reporting agencies to put out a fraud alert and security freeze on your accounts: Experian.com, TransUnion.com and Equifax.com
- Visit identitytheft.gov to file an identity theft report and create a recovery plan.
- Visit www.annualcreditreport.com to get a free annual credit report and search for any unfamiliar accounts or transactions. Dispute any unfamiliar charges with the credit reporting agency.
- If you would like, you can also file a police report with your local police department.
- Make sure to check your homeowner insurance police, as it may protect you from losses suffered due to identity theft.
- Lastly, make sure to visit irs.gov in the event of tax identity theft and complete IRS Form 14039, the Identity Theft Affidavit. Mail the form as instructed, including proof of identity.
Credit repair
Watch out for companies that claim they can repair your credit for an up-front fee. Credit repair is prohibited by law, as negative information on your credit report can not legally be removed unless it is factually inaccurate. Companies also can not legally charge you up-front fees to repair your credit.
Avoid debt settlement services that ask you to pay them instead of your creditors. This is an illegal practice in Georgia and will likely damage your credit further, as late fees and credit dings start piling up.
Here’s how to find credible help with your credit.
- Contact the National Foundation for Credit Counseling to locate a credible, reputable credit counseling or debt adjustment service within your area.
- Know that debt adjusters can not legally charge you any up-front fees. They can only charge you 7.5% of the amount you pay monthly for distribution to your creditors.
Debt collectors
If you owe debts to a creditor, the creditor may decide to turn that debt over to a debt collector in an attempt to collect the money from you. While debt collectors have the right to contact you, they can not harass, threaten or deceive you.
Under the Fair Debt Collection Practices Act (FDCPA), these are the things a debt collector is not legally allowed to do.
- Contact you at unreasonable hours.
- Threaten harm to you, your reputation or your property
- Use obscene or profane language
- Harass you by calling repeatedly
- Refrain from disclosing their identity
- Use a false company or creditor name
- Imply that the call is from anyone other than a debt collector
- Misrepresent the amount of debt in need of collection
- Use words or symbols to convey the appearance of a legal document
- Collect any amount of money that is greater than what is actually owed
- Garnish your wages or take your possessions without a court judgement
Reverse Mortgages
Once you reach 62, you can apply for a home equity loan known as a reverse mortgage to turn your home’s equity into cash. But there are warning signs to look out for when considering a reverse mortgage.
- Even though you will no longer make monthly mortgage payments, you are still required to perform home repairs, maintenance, pay property taxes and home owner’s insurance.
- A reverse mortgage will come with a closing cost similar to a traditional mortgage, as well as service fees over the life of the mortgage and monthly interest.
- Before applying for a reverse mortgage, borrowers are required by law to meet with a counselor from an independent government-approved agency. You can contact the Department of Housing and Urban Development (HUD) for a list of approved counselors.
- Meet with a lawyer or a trusted financial advisor before pursuing a reverse mortgage.
- Different lenders will offer different rates and different types of reverse mortgages, so always shop around and compare offers before making a decision.
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