All posts by Barbara Nevins Taylor

All 55 Plus, Medicare

Last Chance to Switch Medicare Plans

December 7, anniversary of  the attack on Pearl Harbor and the last chance to review your Medicare choices. You can switch your 2017 coverage in or to a Medicare Advantage plan also known as Medicare Part C.  

Keep in mind, loyalty doesn’t pay in the medical insurance world. Insurers change their offerings every year and that’s why it makes sense to compare plans every year although you might not want to do it.

Joe Baker of the Medicare Rights Center says, “Even people who are currently happy with their plan should review.” 

WHAT MEDICARE ADVANTAGE OFFERS

Medicare Advantage typically includes a lot of extras including vision, dental, and wellness programs including gym memberships and some include prescription drugs.

You pay the regular Part B premium of $134.00 a month and then you want to compare prices. Insurers have different requirements. Some may charge a monthly premium and others may charge different fees.  

You do want to make sure that you pick a plan that works for you. Medicare Advantage comes in several forms with different options. You can choose: 

A Health Maintenance Organization, or HMO – It will require you to choose doctors and providers from a specific network and you must get a referral to see a specialist.

A Preferred Provider Organization, or PPO – You pay less if you use doctors and hospitals in the insurers network. And you pay more for those you use out of network.

A Private-Fee-For-Service plan, or PFFS – You can go to any doctor or hospital as long as they accept the plan’s fees and the plan determines how much it will pay.

WHO SHOULD USE MEDICARE ADVANTAGE 

Experts say a Medicare Advantage program can work for you if the doctors, hospitals and medical providers accept the insurance, and if you don’t travel often. Generally, the plans do not cover doctors out-of-state or out of the country. 

HOW TO FIND A PLAN

Medicare.gov offers a tool that will help you compare the plans available to you. It also provides ratings for plans and gives a plan one to five stars based on what it offers and how it actually works for consumers.

Star Ratings

You can also call Medicare directly at 1-800-633-4227 and say “agent” if you need additional help.

 It’s also a good idea to review the medications the insurer plans to cover in 2017. They may drop your medication and that’s a pretty good reason to seek out another company. The booklet they sent you announcing changes should include the “formulary.” That’s what insurers call their list of covered medications.

Make sure your medication appears on the list.

 

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Protect The Consumer Watchdog

by Barbara Nevins Taylor

Sometimes you have to stand up for the people who stand up for you and this seems like one of those times. The Consumer Financial Protection Bureau (CFPB) needs our help.  The Obama administration created the bureau after the 2008 financial collapse and gave it the mission of making sure that financial institutions including banks, lenders, credit reporting bureaus and debt collectors treat consumers fairly.

Sounds like a no-brainer, a good thing especially since it investigated big banks like Wells Fargo, which made up fake accounts for consumers and charged them for it. As a result of that investigation, Wells Fargo paid more than $185 million dollars in fines and penalties. 

When Chase sold consumer debt that had already been paid and then used illegal robo-signing to make it seem as consumers owed, the CFPB investigated and fined the bank more than $215 million in 2015. It also ordered Chase to refund more than $309 million for illegal credit card practices in 2013.  

The bureau also rewrote mortgage lending rules so that banks won’t lend to people who can’t afford to pay their loans. That was a key problem that led to the financial crisis.

It also got the major credit reporting bureaus to become slightly more responsive when people dispute errors on the reports. The situation still is not perfect. And credit reporting agencies remain the most complained-about companies on the CFPB list.

The bureau also continues to go after unscrupulous debt collectors, credit repair companies, auto title lenders, pawnbrokers and credit unions that defraud consumers. 

The bureau plans a new rule governing payday lending and launched an investigation into pension advance schemes that catapult many deeper into debt. 

Since its creation the bureau has retrieved $11.7 billion in refunds for consumers and fines against companies that cheated them. Twenty-seven million consumers benefited directly.  The CFPB also listened to more than one million consumer complaints and responded trying to help.

So what’s bad here? Very little for consumers, but members of Congress think differently. The same people we elect to make laws to protect Americans, at least the current crop, favor fewer regulations that protect consumers.

What’s At Stake

Right now the bureau is led by a director appointed by the President. But Republicans in Congress think a commission should guide it and that would dilute its power.

richard-cordray

The director of the CFPB, Richard Cordray, may run for governor of Ohio and he’ll probably step down. But his replacement could have a significant impact and guide the agency to help consumers in the same way that he has. 

Take Action

So if you care about protecting consumers, why not let your Congressperson, or Senator know that the bureau matters? You can find your Congressperson here: http://www.house.gov/htbin/findrep

You can find your Senator here: http://www.senate.gov/senators/contact/

Submit a complaint to the CFPB 

If you want to submit a complaint to the CFPB, you can do that here: http://www.consumerfinance.gov/complaint/.

 

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Does Trump University Owe You Money?

 

In a stunning turnaround, Donald Trump apparently agreed to pay $25 million to settle the Trump University case with the New York Attorney General. That’s good news for former students of the defunct phony school. They now stand to get reimbursed for the tuition money they paid for a worthless education.

In 2013, New York Attorney General Eric Schneiderman accused Trump of defrauding more than 6000 students who enrolled in Trump University thinking they would get a world-class education in real estate. Some paid as much as $35,000 for what amounted to very little.

 Schneiderman said, “Donald Trump fought us every step of the way, filing baseless charges and fruitless appeals and refusing to settle for even modest amounts of compensation for the victims of his phony university.”

Trump’s agreement to the settlement also means that he will pay New York State penalties of $1million.

If you enrolled in Trump University and you qualify for reimbursement, get in touch with the New York Attorney General here with New York AG or call 1-800-771-7755.

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Mayor de Blasio and President-elect Trump

New York City Mayor Bill de Blasio met with President-elect Trump for 62 minutes to put what he called his “cards on the table.” He said although he and the President-elect have “substantial differences,” he felt it was important to have a “candid conversation.”

The mayor said the talk covered a number of issues that worry New Yorkers, from the possible repeal of Wall Street reforms, to tax cuts for the wealthy and corporations, to concerns about wide-scale deportations that may affect many New Yorkers and put the NYPD in a position that would “create a rift between them and the community.”

He also raised the issue of the appointment of former Breitbart News executive Steve Bannon to a key White House position. Under Bannon’s leadership the alt-right publication published anti-Semitic, anti-women, anti-immigrant and anti-anyone-who-isn’t-white articles filled with distorted information. 

Here’s what the mayor said at a news conference outside of Trump Tower after the meeting.

 de-blasio-and-trump

Mayor Bill de Blasio:

“I just met with President-elect Trump. The purpose of the meeting was for me to assert to him the concerns and the needs of all New Yorkers. My job as mayor is to be their voice and to give him perspective on what New Yorkers are feeling right now, what their concerns are, what their fears are. I thought it was very important, particularly as the President-elect begins his transition, for him to hear the voices of the people and to get some perspective from outside the transition bubble to understand what is being said in the streets and subways of our city and why people are so deeply concerned.

“I raised a number of substantive issues. I want to give you a sense of what they were. I will say at the outset, I’m not going to characterize his positions or responses, but I will give you a sense of what we talked about.

“First of all, we talked about regulation of Wall Street. I raised my concerns about any repeal of the Dodd-Frank bill and what it would do in terms of furthering the economic security of New Yorkers and of millions and millions of Americans, and the deep concern that we would go backwards and that our economy would be in peril again and we would run the risk of another crash.

“I talked to him about the proposal for tax cuts for the wealthy and for corporations. I raised my concern that this would make impossible many of the changes that we need in our country, particularly the investments we so desperately need in infrastructure here in New York City and in cities and counties all over the country. I talked to him about concerns about proposed deportations.

“I gave him the perspective of the NYPD – that any initiative that would create a rift between our police all over the country, and the communities they serve – that would make it impossible for police and community to communicate, and that it would sow distrust between law enforcement and neighborhoods that would be counterproductive.

“Beyond that, that proposal countered and flew in the face of all that was great about New York City, the ultimate city of immigrants, a place that has succeeded because it was open for everyone, a place built on generation after generation of immigrants.

“And I reiterated to him that this city and so many cities around the country will do all we can to protect our residents and to make sure that families are not torn apart. I talked to him about police-community relations in general and specifically the question of stop and frisk.

“I tried to provide perspective on how stop and frisk can create a wedge between police and community when it was used in an unconstitutional manner – it was overused – and how since we changed that policy the city had gotten safer. That we – we knew we were never going back to that policy – that we were going to continue on a path of neighborhood policing and building a bond between police and community.

“I talked to him about our Muslim community. I let him know something that so many people don’t know – that there are 900 Muslim members of the NYPD, protecting all of us, protecting every community, every kind of person. I told him that we were very concerned that we had to show all New Yorkers, including Muslim New Yorkers, that they were welcome and that exclusionary policies would undermine our ability to create unity.

“Exclusionary policies would undermine our ability to create a dynamic where everyone felt a part of this community equally, ready to work to protect each other, ready to work with law enforcement for the good of all. I also raised concerns about some of the messages and some of the rhetoric that for so many people had been hurtful. And I let him know that so many New Yorkers were fearful and that more had to be done to show that this country can heal, that people be respected. I left the meeting with the door open for more dialogue.

“It’s well-known we have very, very substantial differences in beliefs and ideology, but, at the end of the meeting, we agreed that this was a conversation that would continue.

“I reiterated to the President-elect that I would be open minded as we continue substantive discussions, but I would also be vigilant. And I would be swift to react anytime an action is taken that will undermine the people of New York City.

“I also know that New Yorkers will stand together. We’re going to stand up for the needs of working people. We’re going to stand up for our immigrant brothers and sisters.

“We’re going to stand up for anyone who because of any policy is excluded or affronted, be they members of the Muslim community, or the Jewish community, members of the LGBT community, women – anyone who feels policies are being undertaken that undermine them.” 

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Here’s How Elizabeth Warren Will Work With Trump

 

In a speech to the AFL-CIO, Massachusetts Senator Elizabeth Warren said, “Millions of people in this country are worried and they are right to be worried,”

But she also said that she heard the message Americans sent on election day and during the two-year campaign. She said if Trump is serious about reform and creating what she called a “real American agenda,” she and other Democrats can work with him.

But she also made it clear that she deplores Trump’s racist, anti-immigrant campaign rhetoric and misogyny. “We will stand up to bigotry. No compromises ever on this one, bigotry in all its forms. We will fight back against attacks on Latinos, on African-Americans, on women, on Muslims, on immigrants, on disabled Americans, on everyone,” she said.

Warren acknowledged that not all of those who supported Trump support the bigotry and hatred on display at his rallies. “Let’s be clear on this. There are many millions of Americans who voted for Donald Trump out of frustration and anger and the hope that he would make real change,” she explained.

 She highlighted key issues: 

Middle Class Families

“When his goal is to increase the economic security of middle-class families, then count me in. I would push aside those differences to achieve that goal.”

She said she will support efforts to create jobs and rebuild the country’s infrastructure. “If Trump is ready to go on to rebuilding America’s economy for millions of American families, then I am ready and so are a lot of other people, Democrats and Republicans.”

However, she called for reform that targets big banks and Wall Street institutions. She said, “. . . let me also be clear about what rebuilding our economy means. It does not mean handing over the keys of our economy to Wall Street.”

 Healthcare

Americans want to reform Obamacare . . . but if the Republicans want to strip away health insurance for 20 million Americans, if they want to let cancer survivors get kicked to the curb, if they want to throw 24-year-olds off their parents’ health insurance, then we will fight them every step of the way. 

Taxes

She said, “Americans want to close tax loopholes for the very rich…If Republicans want to force through massive tax breaks that blow a hole in our deficit and tilt the playing field even further toward the wealthy and big corporations, then we will fight them every step of the way.”

Dark Money and Pay To Play

Warren said “economic reform requires political reform.” She criticized the outsized role that big money pays in American elections and said, “The American people are sick of politicians wallowing in campaign contributions and dark money.  They are revolted by influence peddling by wealthy people and large corporations.”

She repeated her mantra, “If Donald Trump is ready to make good on his promise to get corruption out of politics and end dark money and pay-to-play, then count me in.”

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We Are Americans First

 

 

“We have to remember that we’re actually all on one team…We’re not Democrats first, we’re not Republicans first, we are Americans first. We’re patriots first. We all want what’s best for this country.”

President Obama, November 9, 2016

 

President Obama said he plans to do everything he can to make sure that the next president succeeds.  He’ll meet with Donald Trump to help smooth the transition and invited him to the White House to talk.

Here’s what President Obama said

“Now, it is no secret that the President-elect and I have some pretty significant differences. But remember, eight years ago, President Bush and I had some pretty significant differences. But President Bush’s team could not have been more professional or more gracious in making sure we had a smooth transition so that we could hit the ground running. And one thing you realize quickly in this job is that the presidency, and the vice presidency, is bigger than any of us.

So I have instructed my team to follow the example that President Bush’s team set eight years ago, and work as hard as we can to make sure that this is a successful transition for the President-elect — because we are now all rooting for his success in uniting and leading the country. The peaceful transition of power is one of the hallmarks of our democracy. And over the next few months, we are going to show that to the world.

I also had a chance last night to speak with Secretary Clinton, and I just had a chance to hear her remarks. I could not be prouder of her. She has lived an extraordinary life of public service. She was a great First Lady. She was an outstanding senator for the state of New York. And she could not have been a better Secretary of State. I’m proud of her. A lot of Americans look up to her. Her candidacy and nomination was historic and sends a message to our daughters all across the country that they can achieve at the highest levels of politics. And I am absolutely confident that she and President Clinton will continue to do great work for people here in the United States and all around the world.

Now, everybody is sad when their side loses an election. But the day after, we have to remember that we’re actually all on one team. This is an intramural scrimmage. We’re not Democrats first. We’re not Republicans first. We are Americans first. We’re patriots first. We all want what’s best for this country. That’s what I heard in Mr. Trump’s remarks last night. That’s what I heard when I spoke to him directly. And I was heartened by that. That’s what the country needs — a sense of unity; a sense of inclusion,; a respect for our institutions, our way of life, rule of law; and a respect for each other. I hope that he maintains that spirit throughout this transition, and I certainly hope that’s how his presidency has a chance to begin.

I also told my team today to keep their heads up, because the remarkable work that they have done day in, day out — often without a lot of fanfare, often without a lot of attention — work in agencies, work in obscure areas of policy that make government run better and make it more responsive, and make it more efficient, and make it more service-friendly so that it’s actually helping more people — that remarkable work has left the next President with a stronger, better country than the one that existed eight years ago.

So win or lose in this election, that was always our mission. That was our mission from day one. And everyone on my team should be extraordinarily proud of everything that they have done, and so should all the Americans that I’ve had a chance to meet all across this country who do the hard work of building on that progress every single day. Teachers in schools, doctors in the ER clinic, small businesses putting their all into starting something up, making sure they’re treating their employees well. All the important work that’s done by moms and dads and families and congregations in every state. The work of perfecting this union.

So this was a long and hard-fought campaign. A lot of our fellow Americans are exultant today. A lot of Americans are less so. But that’s the nature of campaigns. That’s the nature of democracy. It is hard, and sometimes contentious and noisy, and it’s not always inspiring.

But to the young people who got into politics for the first time, and may be disappointed by the results, I just want you to know, you have to stay encouraged. Don’t get cynical. Don’t ever think you can’t make a difference. As Secretary Clinton said this morning, fighting for what is right is worth it.

Sometimes you lose an argument. Sometimes you lose an election. The path that this country has taken has never been a straight line. We zig and zag, and sometimes we move in ways that some people think is forward and others think is moving back. And that’s okay. I’ve lost elections before. Joe hasn’t. (Laughter.) But you know.”

(The Vice President blesses himself.)

(Laughter.)

“So I’ve been sort of –“

THE VICE PRESIDENT: “Remember, you beat me badly.” (Laughter.)

THE PRESIDENT: “That’s the way politics works sometimes. We try really hard to persuade people that we’re right. And then people vote. And then if we lose, we learn from our mistakes, we do some reflection, we lick our wounds, we brush ourselves off, we get back in the arena. We go at it. We try even harder the next time.

The point, though, is, is that we all go forward, with a presumption of good faith in our fellow citizens — because that presumption of good faith is essential to a vibrant and functioning democracy. That’s how this country has moved forward for 240 years. It’s how we’ve pushed boundaries and promoted freedom around the world. That’s how we’ve expanded the rights of our founding to reach all of our citizens. It’s how we have come this far.

And that’s why I’m confident that this incredible journey that we’re on as Americans will go on. And I am looking forward to doing everything that I can to make sure that the next President is successful in that. I have said before, I think of this job as being a relay runner — you take the baton, you run your best race, and hopefully, by the time you hand it off you’re a little further ahead, you’ve made a little progress. And I can say that we’ve done that, and I want to make sure that handoff is well-executed, because ultimately we’re all on the same team.”

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What Hillary Said The Day After

 

Thank you.

Last night, I congratulated Donald Trump and offered to work with him on behalf of our country. I hope that he will be a successful president for all Americans.

This is not the outcome we wanted or we worked so hard for, and I’m sorry we did not win this election for the values we share and the vision we hold for our country. But I feel pride and gratitude for this wonderful campaign that we built together –- this vast, diverse, creative, unruly, energized campaign. You represent the best of America, and being your candidate has been one of the greatest honors of my life.

I know how disappointed you feel, because I feel it too. And so do tens of millions of Americans who invested their hopes and dreams in this effort. This is painful, and it will be for a long time.

But I want you to remember this: Our campaign was never about one person or even one election. It was about the country we love — and about building an America that’s hopeful, inclusive, and big-hearted. We have seen that our nation is more deeply divided than we thought. But I still believe in America –- and I always will.

And if you do, too, then we must accept this result -– and then look to the future. Donald Trump is going to be our president. We owe him an open mind and the chance to lead.

Our constitutional democracy enshrines the peaceful transfer of power, and we don’t just respect that, we cherish it. It also enshrines other things –- the rule of law, the principle that we’re all equal in rights and dignity, and the freedom of worship and expression.

We respect and cherish these things too — and we must defend them. And let me add: Our constitutional democracy demands our participation, not just every four years, but all the time. So let’s do all we can to keep advancing the causes and values we all hold dear: making our economy work for everyone, not just those at the top; protecting our country and protecting our planet; and breaking down all the barriers that hold anyone back from achieving their dreams. We’ve spent a year and a half bringing together millions of people from every corner of our country to say with one voice that we believe that the American Dream is big enough for everyone — for people of all races and religions, for men and women, for immigrants, for LGBT people, and people with disabilities. Our responsibility as citizens is to keep doing our part to build that better, stronger, fairer America we seek. And I know you will.

I am so grateful to stand with all of you. I want to thank Tim Kaine and Anne Holton for being our partners on this journey. It gives me great hope and comfort to know that Tim will remain on the front-lines of our democracy, representing Virginia in the Senate.

To Barack and Michelle Obama: Our country owes you an enormous debt of gratitude for your graceful, determined leadership, and so do I.

To Bill, Chelsea, Marc, Charlotte, Aidan, our brothers, and our entire family, my love for you means more than I can ever express. You crisscrossed this country on my behalf and lifted me up when I needed it most –- even four-month old Aidan traveling with his mom.

I will always be grateful to the creative, talented, dedicated men and women at our headquarters in Brooklyn and across our country who poured their hearts into this campaign. For you veterans, this was a campaign after a campaign — for some of you, this was your first campaign ever. I want each of you to know that you were the best campaign anyone has had. To all the volunteers, community leaders, activists, and union organizers who knocked on doors, talked to neighbors, posted on Facebook – even in secret or in private: Thank you. To everyone who sent in contributions as small as $5 and kept us going, thank you.

And to all the young people in particular, I want you to hear this. I’ve spent my entire adult life fighting for what I believe in. I’ve had successes and I’ve had setbacks -– sometimes really painful ones.

Many of you are at the beginning of your careers. You will have successes and setbacks, too. This loss hurts. But please, please never stop believing that fighting for what’s right is worth it. It’s always worth it. And we need you keep up these fights now and for the rest of your lives.

To all the women, and especially the young women, who put their faith in this campaign and in me, I want you to know that nothing has made me prouder than to be your champion. I know that we still have not shattered that highest glass ceiling. But some day someone will -– hopefully sooner than we might think right now.

And to all the little girls watching right now, never doubt that you are valuable and powerful and deserving of every chance and opportunity in the world.

Finally, I am grateful to our country for all it has given me. I count my blessings every day that I am an American. And I still believe, as deeply as I ever have, that if we stand together and work together, with respect for our differences, strength in our convictions, and love for this nation -– our best days are still ahead of us.

You know I believe we are stronger together and will go forward together. And you should never be sorry that you fought for that. Scripture tells us: “Let us not grow weary in doing good, for in due season, we shall reap, if we do not lose heart.” My friends, let us have faith in each other. Let us not grow weary. Let us not lose heart. For there are more seasons to come and there is more work to do. I am incredibly honored and grateful to have had this chance to represent all of you in this consequential election. May God bless you and god bless the United States of America.

Hillary

hillary-thank-you

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What To Do When The Debt Collector Calls

 

 

When a debt collector calls, stay calm and find out how much you actually owe. It sounds obvious. But aggressive debt collectors turn their jobs into performance art and lie to scare people into shelling out money whether they owe it or not. That’s why you can hang up on them, and contact the company or institution they mentioned directly. Find out what they have in their records and get the real story.

A lawsuit by the Consumer Financial Protection Bureau and the New York State Attorney General highlights the bad practices of a network of companies operating a collection scheme all across the country that brings in tens of millions of dollars a year. The lawsuit alleges that they continue to “harass, threaten and deceive millions of consumers across the nation into paying inflated debts or amounts they may not owe.”

Northern Resolution Group, Enhanced Acquisitions, and Delray Capitals, all based in Buffalo, N.Y., purchased millions of dollars of consumer debt. Under the oversight of Douglas MacKinnon and Mark Gray, the lawsuit alleges that since at least 2009, the companies ran ” a massive collections scheme that routinely inflated consumer debts and relied on illegal tactics to extract as much money as possible from consumers.”

CFPB Director Richard Cordray said, “Living with debt is difficult enough as it is, without the added stress of being harassed and threatened by debt collectors.”

According to the lawsuit the debt collectors:

  • Inflated the amount people owe. In some cases the companies inflated the debt by 600 percent. They also added $200 to every account they attempted to collect. 
  • Falsely threatened legal action and arrests. Company representatives sometimes identified themselves as government officials. In one instance in Los Angeles, a debt collector claimed he represented the “Los Angeles County Courts” and told a consumer she didn’t have time to get a lawyer and faced arrest the next day if she didn’t pay up immediately. The same collection agent continued to harass her and her relatives demanding payment.

In other instances, collectors called and demanded immediate payment and harassed people at work and called their relatives to tell them about lawsuits filed against them. In fact, the companies did not file lawsuits and apparently didn’t intend to do so.

The CFPB and the New York Attorney General asked a federal judge in the Western District of New York to stop the company from doing business and to order them to pay penalties and restitution to the victims.

As the case winds it way through the legal process, we’ll have a better idea of when people will get money back and how much.

In the meantime, if you think these companies took money from you illegally, get in touch with the New York State Attorney General:  1-800-771-7755, or the Consumer Financial Protection Bureau or the consumer advocate in your state.

 

 

 

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Did You Fall For The IRS Caller Scam?

It took a three-year investigation, but law enforcement officials finally caught up with a group of IRS call center scammers. If you ever received one of these calls, you know how maddening, threatening and frightening they could be if you believed, and people did. 

More than 15,000 people fell victim and lost hundreds of millions of dollars, according to an indictment brought by the U.S. Attorney in the Southern District of Texas that named 61 people in an alleged scheme that operated in India and the United States. FBI agents, working with agents from the IRS and the Department of Homeland Security, arrested 20 people in the United States and 32 in India at five call centers. Immigration officials have another man in custody in Florida.

The indictment describes an elaborate scam organized in India with a network of call centers in Ahmedabad. It details how the creepy callers used information from data brokers and others to find potential victims and impersonate IRS agents or U.S. Citizenship and Immigration Services agents.

Call center operators threatened potential victims with arrest, imprisonment, fines or deportation if they did not pay taxes or penalties to the government, 

And here’s where it got really bad.

When victims agreed to pay, the call centers would turn to a network of U.S.-based co-conspirators to launder the extorted funds quickly by purchasing prepaid debit cards or using wire transfers.

The U.S. Attorney said,  “…prepaid debit cards were often registered using misappropriated personal identifying information of thousands of identity theft victims, and the wire transfers were directed by the criminal associates using fake names and fraudulent identifications. “

Scammers used “hawalas,” in which money is transferred internationally outside of the formal banking system, to direct the extorted funds to accounts belonging to U.S.-based individuals. According to the indictment, these individuals were expecting the hawala transfers but did not know how their partners got the money. The co-conspirators also allegedly kept a percentage of the proceeds for themselves.

Who Fell For the IRS Scam

The indictment says an 85-year-old victim from San Diego, California, paid $12,300 after scammers threatened her with arrest if she did not pay fictitious tax violations. 

A man in Hayward, California, shelled out $136,000 after scammers called him many times over a 20-day period. They told him he owed the IRS money and demanded that he pay. He followed their instructions and bought 276 stored value cards. The scammers transferred the money to reloadable debit cards. They purchased some of those cards using the stolen IDs of Americans.

In some cases, scammers offered short-term loans or grants. They asked for deposits to show “good-faith” that people would make payments. And then, of course, the people who paid never received any money.

U.S. Attorney Kenneth Magidson said,“This indictment will serve to not only seek the conviction of those involved, but will send a message around the world that no one is safe from prosecution for participating in such pervasive transnational fraud schemes.”

Did You Fall For The IRS Caller Scam?

If you became a victim of one of these scams, the Department of Justice wants to hear from you.  It asks that you contact the Federal Trade Commission to file a complaint and get yourself listed. 

 

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And Future Income Payments Shut Down In New York State And Will Repay

 

by Barbara Nevins Taylor

Good news for people in New York who ended up at the wrong end of a Future Income Payments (FIP) pension advance scheme. The New York State Department of Financial Services (DFS) ordered the company to stop doing business in the state, refund money, collect only what people actually borrowed and pay a fine of $500,000.

California-based Future Income Payments and its owner, Scott Kohn, set up an elaborate scheme between people who needed quick cash and borrowed against their pensions, and investors who lent the money. We have posted about the dangers of pension advance programs for people who need money and those who lend it. 

But here’s what happened in this case in New York State, 282 people borrowed $283 million dollars through FIP. Some borrowed as little as $2,500. Others took loans of as much as $58,000. If everything went as planned, Future Income Payments would make a profit of 250 percent and pocket $8.8 million.

The company advertised online and worked through third-party lead generators.

They called these loans pension cash advances, lump sum payments, pension buyouts and structured cash flows. But the Financial Services Department found a loan by another name adds up to a loan. DFS ruled the company violated lending law because it’s not licensed to make loans in New York State. DFS Superintendent Maria Vullo also found the company charged more interest than the state allows.

As the result of a consent agreement with the state:

  • Future Income Payments will revise the amount of money for New Yorkers to what they actually borrowed. That means no interest.
  • Anyone who already completed paying off the loan, minus the interest, will not have to pay anymore. The company will confirm that in writing.
  • Future Income Payments will refund what people paid in interest beyond what they actually borrowed.
  • Future Income Payments will stop doing business in New York and will put that fact on websites, advertising and other solicitations.

HOW DO YOU GET YOUR MONEY BACK?

New York State will pick an administrator to oversee the details and after that Future Income Payments has 45 days to make the refunds and adjust payment schedules.

The agreement with the state requires Future Income Payments and the administrator to get in touch with borrowers. But in the meantime, if you borrowed against your pension with Future Income Payments and you live in New York, call the DFS hotline (800)342-3736 or go to www.dfs.ny.gov  for help.

Unfortunately, this agreement and individual court cases and rulings in other states that found pension advance schemes amount to loans affect only people in those cases and states. 

Just in case anyone gets confused, Future Income Payments went by the name Pension Annuities & Settlements and used marketing companies called Cash Flow Investment Partners, BuySellAnnuity and Pension Advance LLC..  All the companies operated from the same address in Irvine, California.

 

 

 

 

55 Plus News, All 55 Plus, Consumer News, Featured Stories, Scam News

Phone Calls Soliciting Your Money

We can’t say it enough. Hang up on that telemarketer! Nothing good can come of phone calls soliciting your money. 

The latest painful lesson comes in the form of a $9 million scam that targeted thousands of retired people and retired military personnel all across America. A Federal Trade Commission (FTC) complaint filed in federal district court in Arizona lays out the scheme that offered a sure-fire way to make money.

Telemarketers offered the opportunity to invest in e-commerce websites or websites that link to popular sites like Amazon. They promised a risk-free, high-profit investment with a money-back guarantee.  

Consumers who fell for the sales pitch made payments of hundreds of dollars to as much as $20,000 by credit card.  When consumers called to check on their investments during the first 90 days, the FTC says scammers reassured them. They allegedly told consumers they held the money in secure accounts that continued to earn more money. But after 90 days, when most credit card companies limit the ability of consumers to dispute charges, the company stopped responding to calls or email queries.

The FTC’s complaint says Susan Rodriguez, Matthew Rodriguez and William “Matt” Whitley used six corporations: Advertising Strategies LLC, Internet Advertising Solutions LLC, Internet Resource Group Inc., Network Advertising Systems LLC, Network Professional Systems LLC, and Network Solutions Group Inc.

They also disguised their location by using mail-forwarding services and they changed their business name and mailing and physical addresses to avoid detection by law enforcement.

The FTC says the defendants most recently have done business as Titan Income. They previously did business as Building Money Network and buildingmoney.cash, Prime Cash and Primecash.net, and Wyze Money and wyzemoney.net.

A federal judge froze their assets while the case is under review. 

Consumer News, Featured Stories, Latest News, Money News, News, Scam News

Speak Up About Payday Lending

 

Barbara Nevins Taylor

 

If payday lending makes you angry, if you’ve seen someone hurt by this kind of predatory lending, or if you became a victim because you needed money to pay a bill, now is the time to speak up and speak out. 

The Consumer Financial Protection Bureau (CFPB) will make new rules to regulate this wildcat industry and they want to hear from real people.

Payday lenders typically lend some amounts of money at interest rates that often climb to 300 percent. When a borrower has trouble repaying they may renew the loan and add fees and interest on the interest. So these loans become a no-win situation. 

The Center for Responsible Lending issued a rallying cry and set up a way for you to let the CFPB know what you think.

Here’s what they say: 

“These are the final days to let the Consumer Financial Protection Bureau (CFPB) know what you think about proposed rules that, if strengthened, could rein in the worst abuses of payday and car-title lending.

The proposed rules are based on the ability-to-repay principle – the common-sense idea that if lenders make loans, they must ensure the borrower can repay those loans without re-borrowing or defaulting on expenses. The problem is that there are exceptions within CFPB’s proposed rules, loopholes the payday lenders can wiggle through, which they have shown themselves so good at doing over the years.

Time is running out to make our voices heard. So act now to add your voice! Tell the CFPB: don’t give payday lenders room to wiggle around the ability-to-repay requirements!”

Add your comment BY FRIDAY to stop the debt trap!

 

Sarah Ludwig of The New Economy Project, formerly NEDAP, an advocacy group that helps people who fall victim to financial scams, made this video for us about the dangers of taking a payday loan.

 

All 55 Plus, Medicare

Protection In Nursing Homes

The first time my cousin Marilyn went from the hospital into a nursing home, I discovered that if something happened, we had little recourse. The contract the facility required me, as the person responsible for her, to sign included the fine print detail that if their treatment hurt her in any way, we would have no recourse in the courts. Binding arbitration would settle all complaints.

Of course, I hoped they would treat her well but this made me incredibly uncomfortable. It certainly didn’t seem like the greatest place and I pushed to get her out of there and back to the assisted living facility where she lived as soon as possible.

Many other families did not have that good fortune and found their ability to hold nursing homes accountable limited by binding arbitration. They could not sue. 

Finally, that changed. The Centers for Medicaid and Medicare Services (CMS), the federal agency that sets the rules for nursing homes, stepped up and created a new rule it calls “Protecting Residents’ Rights.” It will affect the 1.5 million people in more than 15,000 long-term care facilities. 

Protecting Residents’ Rights

Here’s what the Centers for Medicaid and Medicare Services said:

“Our final rule will prohibit the use of pre-dispute binding arbitration agreements. This means that facilities may not require residents to sign pre-dispute arbitration agreements as a condition of admission to that long-term care facility.

Facilities and residents will still be able to use arbitration on a voluntary basis at the time a dispute arises.

Even then, these agreements will need to be clearly explained to residents, including the understanding that these arbitration agreements are voluntary, and that these agreements should not prevent or discourage residents and families from talking to authorities about quality of care concerns.”

 

Featured Stories, News, Scam News

Thinking About Taking a Title Loan

When you own your car or vehicle outright, it may seem irresistible to borrow against it when you need money. But if you are thinking about taking a title loan, watch out. It can cost you much more money than you think.

The latest action by the Consumer Financial Protection Bureau (CFPB) highlights what a nightmare a title loan can become. It fined TitleMax and its parent company TMX, LLC $9 million for its bad practices.

Customers who visited one of the 1300 TitleMax storefronts in 18 states learned they could borrow money against their cars for 30 days. But the interest rate was 300 percent. And often, salespeople encouraged them to spread out the payments using a “Voluntary Payment Plan.” It might have sounded great, but those plans brought the finance charges even higher and put people deeper and deeper in debt.

The CFPB charged Savanah, Georgia-based TMX Finance, LLC,  parent company of TitleMax, with, “. . . luring consumers into costly loan renewals by presenting them with misleading information about the deals’ terms and costs.”

The CFPB looked at loans from July 21, 2011 to the present and found a pattern of abusive debt collection. When people failed to make payments on time, TitleMax employees made what they described as “field visits.” They went to people’s homes and offices. They embarrassed them, but worse, they shared their personal financial information with employers, relatives and friends.

As a result of its unfair lending and collection practices, TMX Finance, parent company of TitleMax, will pay a fine of $9 million.

No one goes to jail here, but the company did agree to stop its abusive practices and must submit a plan within 90 days to the CFPB outlining how it will put reforms into place.

 

Banking News, Consumer News, Featured Stories, Latest News, Money News, News

Does Wells Fargo Owe You Money Again?

 

updated December 28, 209

Wells Fargo paid out money for bad behavior in the past and Wells Fargo may owe you money again. We describe all the reasons on this page. But if you need more information about the latest, you can find it here.

Why does Wells Fargo possibly owe you money? Because the friendly person in the Wells Fargo branch neglected to tell you that, or she, opened a credit card in your name. The bank recently announced it discovered an additional 1.4 million accounts affected bringing the total to 3.5 million.

That stunt added to the employee’s bonus and cost you fees you didn’t want and might not have even realized you had to pay. They did this from January 2009 to September 2016.

Employees opened these 3.5 million accounts, without approval, for people who already banked with them and didn’t ask for new accounts or credit cards. That gave the employees extra cash in bonuses, while consumers ended up with unauthorized charges on their accounts.  

They dishonestly created false email accounts for consumers so that the new accounts would get approved without a hitch.

Consumer Financial Protection Bureau (CFPB) Director Richard Cordray said, “Because of the severity of these violations, Wells Fargo is paying the largest penalty the CFPB has ever imposed,”as the result of a settlement.

Wells Fargo’s former CEO John Stumpf told members of the Senate Banking Committee that he was “deeply sorry” and that he took “full responsibility” for the unethical behavior.  Stumpf “retired” in October 2016. 

But come on. Who was minding the store?

Stumpf blamed about 5,300 employees for the behavior that cost customers money. He said they’d been fired. But former employees said they felt pressured from higher-ups to bend the rules.

The current C.E.O., Tim Sloan said in September 2017, “I want to assure you that we will take swift action to make things right for every a affected customer. We will issue refunds, provide assistance correcting credit reporting, and compensate customers for broader financial impacts.” And we entered into a $142 million settlement agreement to compensate eligible customers.

Actually, Wells Fargo will pay more than $185 million dollars in fines and penalties. A $100 million fine goes into the CFPB’s Civil Penalty Fund, which pays victims restitution for financial frauds.

But Wells Fargo will also refund, or has already, at least $2.5 million to consumers who found their accounts manipulated. In addition it will pay $35 million to the U.S. Comptroller of the Currency and $50 million to the county and city of Los Angeles, which sued the bank along with CFPB.

Does Wells Fargo owe you money?

If Wells Fargo owes you money under the settlement, it is required to reach out to you. It needs to do the work.

If you think Wells Fargo owes you money and you do not hear from the bank or receive the money, contact the CFPB. (855)-411-2372.