BOOMER JOURNEYS

By Alex Carrier, Special Correspondent
Published: July 17, 2008

Economists, government agencies and those-in-the-know are still avoiding the “r” word but the signs of recession are everywhere.  They are visible in the anxious, worried faces of the public and in ads, commercials and billboards.
Nothing brings out the scammers and frauds like hard times.  Americans being hounded by economic hardships are eager to find answers or assistance to help them cope.  Many good, legitimate programs are available to every American.  Unfortunately, there are far too many people working to get your money and give you nothing in return. 
Anyone can become the victim of a con. Cons use any and all manner of disguise and deceit to get money they don’t deserve.  Frauds take place in person, by mail, in newspapers, on television and the radio, over the phone and over the Internet.  The only defense is rational thought and healthy skepticism.
The government and watchdog agencies like the Better Business Bureau work to identify, catch and prosecute fraud.  The consumer must work as diligently at identifying potential cons, avoiding them and alerting authorities to these criminals.
Some of the schemes may be basically legal but just as costly and devastating to the consumer.  Predatory lending is one of those practices currently under scrutiny. 
If you watch television, you are probably aware of the spike in commercials for car-title loans.  The Consumer Federation of America states “loans for car titles are the latest form of extremely expensive high-risk credit targeting cash-strapped consumers.”
Like payday loans, these loans have incredibly steep interest rates charging up to 30% interest for a loan that is a fraction of the car’s actual value.  Worse yet, if the consumer is unable to pay the loan by the end of the term - usually 30 days – they can lose their car.
The CFA stresses “Title loans trap borrowers in perpetual debt through unaffordable balloon payments, high interest costs and the threat of repossession.”
Schemes offering to help you make money can be just as big a trap.  Don’t fall for ads promising to get you a government job.  All these scams give you for your money is a government application, which is free and available to anyone.
Some schemes offer ways to make money at home by purchasing a small amount of supplies or product.  Check with the Better Business Bureau and the Federal Trade Commission before sending any of these so-called opportunity companies your money. You may get the product but you won’t be able to make any money selling it.
Email scams may not only take your money, they may entrap you in illegal activities.  Offers of jobs from overseas companies asking you to work as a clerk receiving customer payments in the states, depositing those payments into an account you set up and then writing a check from your account to the overseas company may actually be money-laundering.  This is a felony with severe consequences. 
Still other scams may ask you to receive payments or packages at your home.  You then mail those payments or packages on to a third party.  Again, these are likely illegal activities and may not only cost you money but your freedom. 
If like many other Americans you are facing economic hardships, take advantage of the many legitimate agencies available to you.  Check with your local Social Services office.  You may be eligible for temporary assistance with food, fuel or other needs.  They are also a resource for other agencies that can help.
Contact your creditors and see what programs they may offer to get you through your financial crisis.  Credit counseling services can help you make a budget, find ways to decrease your montly costs and work with creditors to make a payment plan.  Legitimate credit counseling agencies will not charge you money up front but will charge a small percentage based on your ability to pay. 
The state unemployment office is a place to find help with jobs.  They are also aware of legitimate permanent and temporary employment agencies. 
There are people who can advise and assist you in ways to plan and work toward a better financial future.  Cons and frauds promise a quick fix but only deliver more misery.