All posts by Barbara Nevins Taylor

5 Books To Read and Give As Gifts

December 19th, 2014

We’re adding another to the list of our recent favorites to make it 5 books to read and give as gifts. Oh, and if you decide to buy and click through to Amazon it helps ConsumerMojo.com pay for all of the good free information on our site.

This Dark Road to Mercy is fun and reads like a mashup of genres. You’ll find a little cop procedural, some thriller, a zany cops and robbers caper, teen love, family chaos and baseball.

It kept me reading and shaking my head. Sure, I identified with the girl whose father vanished from her life when she very young and then reappeared when she was twelve. But that’s just part of the reason why I fell in love with this book.

CONTINUE→ or go to BOOKS

We also like:

The Long Way Home by Louise Penny

Every time I read a book by Louise Penny, I want to linger in the world that she creates. I’m always sorry when something pulls me away.

The Long Way Home is the latest in Penny’s Inspector Gamache series. And we find Gamache retired and living in the idyllic village of Three Pines in Quebec near the American border. The story starts out slowly, reels you in and then offers surprise after surprise.

Just when you think you understand the mystery, you discover how an artful writer like Penny can tease you, keep you reading and deliver a suspenseful and powerful payoff. CONTINUE→ or go to BOOKS

Paris Match by Stuart Woods

Stone Barrington is really getting around these days. Stuart Woods’ ex-cop attorney, intrepid crime-solver and effortless lucky-getter is in Paris in his latest escapade. Paris Match pits Stone against a criminal Russian oligarch who wants revenge for his brother’s death, and only Stone’s murder will satisfy his blood lust. CONTINUE→ or go to BOOKS.

A Dancer In The Dust Thomas H. Cook

Cook creates a literary mystery with soul.

How many of us look back on our youth and idealism and wonder if we were foolish and event hurtful to others. Cook, an Edgar Award winner, skillfully uses the backdrop of a lawless, fictional, African country in turmoil to explore the intersection of love and idealism.

In A Dancer In The Dust, we meet Ray Campbell, an expert in risk management, twenty years after his return from a stint as an aide worker for a non-governmental organization (NGO). He went to, the fictional, Luanda to invest a foundation’s money and create infrastructure projects to transform the country. And almost immediately, he fell in love with a young white woman born and raised in a traditional African village who wanted everything to remain the same. CONTINUE→ or go to BOOKS

The Children Act by Ian McEwan

When I finished The Children Act, I hugged the book to my chest and continued to think and think and think. I’m still thinking.

In this short novel, Ian McEwan explores the difficult choices that we confront in relationships, in religion and the law. He brings us into the life of Fiona Maye, a respected British High Court judge in the Family Division.

We learn quickly that her long-time marriage to a professor is strained and perhaps over. But she buries herself in demanding work to avoid dealing with her roiling emotions and making a decision about whether to continue the marriage. Her cases involve bitter divorces and custody battles and she takes great pride in writing elegant legal decisions. CONTINUE→ or go to BOOKS

55 Plus News, All 55 Plus, Scam News

5 Top Phone Scams Aimed At 55 Plus

December 18th, 2014 1 Comment

by Barbara Nevins Taylor

Sometimes, some of us fall for a pitch that sounds convincing but can really open the door to host of financial problems. Even though we think we’re clever and know the score, it’s always a good idea to understand the scams that may come our way.

New York Attorney General Eric Schneiderman offers a useful list of the top phone scams aimed at 55 plus people. But it’s bigger than a New York problem and every scam that we talk about here is played out in communities all across the U.S.

GRANDPARENT SCAM

You’re likely to get an urgent phone call. And the caller claims he’s “your favorite grandson” or just says, “It’s me.”

Then, you give the name. “Jared?” you might say. Often scammers pick up names from social media and target you that way.

The pitch may vary. But it basically goes like this: the “grandson” is out of town and needs money fast to pay for a plane ticket, to make bail, or pay for automobile repairs or medical expenses.

The caller begs you not to tell his parents and asks you to wire the money immediately.

JURY DUTY SCAM

Someone calls and claims to be a court officer. He says that you failed to appear for jury duty and now there’s a warrant for your arrest.

To avoid arrest you have to pay a fee immediately and you must wire the money. New York City Police tell us that scammers are urging people to pay with a prepaid Green Dot card.

CONTINUE → or go to page 1 2 3

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IRS Alert 503 Scam and More

December 18th, 2014

← PREVIOUS THINGS TO KNOW TO AVOID THE SCAM 1. The IRS does not call to threaten or demand money. 2. State tax departments don’t call to threaten or demand money. 3. The IRS sends all requests by mail, not email. 4. State tax departments send all request by mail, not email. If you’ve been contacted by someone working this IRS scam let the IRS know. Share with us and leave a comment. Go to page 1 2

Listen to an IRS Phone scam call here

News

Protests Draw Tens of Thousands

December 14th, 2014

A diversity recruiter can look to the protests on Saturday, December 13 to see the face of young America. People, mostly young, of all races and backgrounds, gathered in New York in Washington Square, Union Square and Madison Square to protest the grand jury decisions in the Eric Garner and Michael Brown cases.

And they raised their voices and their signs about the way the police pigeonhole young black men in America.

After rallying in the squares, demonstrators marched down Broadway to One Police Plaza, snarling traffic and creating long delays for motorists.

The protests contrasted sharply with the Santa Con pub crawl in New York City where groups of mostly white twenty-somethings, dressed in Santa costumes and reindeer antlers, moved from bar to bar.

The protests became nasty when two police lieutenants tried to stop a man from throwing a garbage can from a walkway on the Brooklyn Bridge. People in the crowd jumped, punched the two officers, threw them to the ground and kicked them. One of the lieutenants suffered a broken nose and both were taken to a hospital. Deputy Director for Intelligence and Counterterrorism John Miller said those involved were part of a “…small clique…” that sought to provoke trouble and “deliberately seeks out violence and disorder.”

Another incident marred the protests. A small group of protestors near Madison and 28th Street surrounded traffic agents in their car and smashed windows.

But the overall protest was peaceful, and you can disapprove of the violence and also understand why so many came out to march when you read what young people of color say about their place in society and their disappointment about race relations in America.

Young people speak out about the Eric Garner verdict 1

Young people speak out about the Eric Garner verdict 2

Young people speak out about the Eric Garner verdict 3

I Want My Faith Restored

4 Books To Read and Give As Gifts

Link December 12th, 2014

We made a list and checked it twice to recommend 4 books to read and give as gifts. We read all of them recently and think you can’t go wrong with one or all of them.

You will find them quite different. Yet, each will keep you reading and enjoying.

We offer reviews in the ConsumerMojo.com Book section. But here’s a quick look at 4 books we like.

The Long Way Home by Louise Penny

Every time I read a book by Louise Penny, I want to linger in the world that she creates. I’m always sorry when something pulls me away.

Just when you think you understand the mystery, you discover how an artful writer like Penny can tease you, keep you reading and deliver a suspenseful and powerful payoff. CONTINUE→ or go to BOOKS

Paris Match by Stuart Woods

A Dancer In The Dust , Thomas H. Cook

Cook creates a literary mystery with soul.

The Children Act by Ian McEwan

When I finished The Children Act, I hugged the book to my chest and continued to think and think and think. I’m still thinking.

Subway Loses Power and Conductor Reassures

December 11th, 2014

by Barbara Nevins Taylor

When the E train pulled out of 34th Street and then stopped in the tunnel around 6:10 p.m., no one looked up. But the lights dimmed and the electric signs that display the subway route faded to black, and we began to look around at each other.

“This doesn’t seem so good,” I said. The guy standing in front of me, watching a movie on his iPad, rolled his eyes and the two men seated next to me groaned in unison.

Then we heard the ding. And a second later, a disembodied voice said, “Ladies and gentleman, this is your conductor. There’s a problem at West 4th Street and we’re being held. I’m sorry for the inconvenience.

No electricity. No Internet. Some played with their phones. Others kept their eyes down. Then again the ding.

“Ladies and gentlemen, this is your conductor. We lost power on the E train and they’re working to find out what happened and restore it. Thank you for your patience.”

The E train lost power and stalled in the subway station, but the conductor reassured passengers and kept them calm. The man watching the movie said, “I think he’s my favorite conductor.”

We sat some more. Three guys who looked like they had just left the office and planned to hit a bar found that the door between cars opened. “Can we get out?” one said. “If we crawl out, we can do it,” another said. “Okay. So now we have to have the balls to do it.”

They circled around the open door and looked out.

A woman sat down on train floor and burrowed into a device. A woman across from me kept her eyes on Ordinary Grace, the book in her lap, by William Ken Kreuger. Another tried to read the latest New York Magazine. And on my left Sandra Diaes fiddled with her phone, poked me and said, “I’m trying to find my flashlight. Oh. Here it is. Look. You never know if we might need it in the tunnel.

And then we heard the ding. “Here we go again,” the man on my right said.

“Ladies and gentlemen, this is your conductor. The power is out on the 8th Avenue and 6th Avenue lines. They are working to restore it. I’ll let you know what’s happening as soon as I know. Thank you for your patience.”

People laughed and shook their heads and we sat. I admit my thoughts ran to gruesome scenes where trains stalled and bad things happened. Clips from horror videos of the imagination played out in my mind and I pushed them aside.

The three men who thought about escape stood between the cars and leaned out.

Ding. “Ladies and gentlemen, this is your conductor. They are working to restore the power. Please don’t leave the train. When we get power back, it could be very dangerous if you are on the tracks. Please don’t leave the train. Thank you for your patience.”

More than an hour after the train stopped, we heard the ding again. “Ladies and gentlemen, this is your conductor. We have power. But there are trains in front of us. So it may take a few minutes for us to move. Thank you for your patience.”

The lights went on, and we heard the rumble of an express train traveling in another direction. A few minutes later: Ding. “Ladies and Gentlemen, this is your conductor. The train will be going backwards to 34th Street. Please stay inside the train. Thank you for your patience.”

The train came to life and rolled backwards and lurched to a stop. People stumbled. Ding. “Ladies and gentlemen, this is the conductor the backward movement triggered the emergency brake. We’ll be moving in a few minutes.”

And an hour and ten minutes after the train stopped in the tunnel, we’re back in 34th Street and everyone got off the train.

Conductor Herbert Sansom gets a big nod here. The subway loses power and conductor’s reassurance says it all. Thanks Mr. Sansom for keeping us informed.

The MTA says a manhole fire south of West 4th Street damaged cables and caused the outages. There may be delays on the trains on the A, C and E trains on Friday morning.

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Changes In Your Medicare Plan

December 5th, 2014

Who likes change? Who enjoys hassle? You’d rather save time and maintain the status quo by sticking with your Medicare insurance plan. But loyalty may not pay off for you. Insurance companies tinker with and change their plans and that’s why it’s a good idea to make a quick review of what your insurer will offer in 2015.

You have until December 7th to make a change in your Medicare insurer and your Part D plan. Medicare Open Enrollment gives you the opportunity to change your plan and Part D. There may be a better deal that works for you. Not all insurers charge the same monthly fee, nor do they offer the same range of services.

Insurers also change the rules and the fees they charge every year. So the plan you like now may not reflect what the insurer will offer in 2015.

You can review and compare plans available to you through the website of the Center for Medicare and Medicaid Services (CMS).

Medicare Part D

When it comes to Medicare Part D, you want to make sure that the insurer will cover your drugs. It does require research. You can call your insurer, or check the information they sent to you. Make sure the drugs you use are covered in the list of drugs, or “formulary.”

If they don’t offer what you need, try another insurer in your area. The website of the Centers for Medicare and Medicaid Services (CMS) offers a an easy-to-use tool that can help you locate another insurer.

Medicare Plan Finder

You can change your Medicare health and drug coverage without penalty now as long as you do it on or before December 7, 2014. Your new benefit plan will go into effect on January 1, 2015.

We provide tips to figure out the key things to consider in your Part D plan in ConsumerMojo’s post Why Change Your Medicare Part D Plan?

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Push To Control Debt Collectors

December 4th, 2014

There’s a new push to control debt collectors and protect consumers from abusive and deceptive practices on the national and the local level.

The Consumer Financial Protection Bureau (CFPB) charged New Jersey-based Premier Consulting Group and the the law office of Michael Lupolover with charging customers, in a number of states, illegal upfront fees for debt-settlement services they never received,

Neither Premier nor the Lupolover office admitted wrongdoing, but Premier will pay a $69,000 fine to the CFPB.

Director Richard Cordray said, “Charging upfront fees for debt-settlement services is against the law, and today’s action is another reminder that these illegal practices will not be tolerated.”

In New York, Governor Andrew Cuomo outlined debt collection regulations that will go into effect in January of 2015. It all seems like common sense, but we have heard the stories and know that debt collectors often abuse people who can’t fight back.

New York regulations that go into effect in 2015 say debt collectors cannot:

Use or threaten violence.
Make repeated phone calls and annoy, abuse, or harass you.
Use obscene or profane language when they call you.
Call you at times they know, or should know, are inconvenient, including before 8 am and after 9 pm.
Contact you at work if your employer prohibits you from receiving personal calls.

If you live in New York you should contact the Consumer Hotline at (800) 342-3736, or file a complaint with the New York State Department of Financial Services (DFS).

The Consumer Financial Protection Bureau also wants to hear from you and you can file a complaint with the bureau. Or call 855-411-2372.

This video blog by the New Economy Project’s Susan Shin explains why should avoid debt settlement and credit repair companies.

Cyber Shopping Safety Tips

November 30th, 2014

Many of us may do more holiday shopping this year because we feel better about the economy, according to the 2014 Deloitte University Press Survey. And we’re likely to do 40 percent of our gift buying online. But it’s also a busy season for the bad guys. They’re standing by ready to take every opportunity we give them to steal money and identities. And that’s why we put together these cyber shopping safety tips.

1. Shop only on encrypted secure Internet connections

https: look for it.

Shopping and paying for your purchase using public Wi-Fi while drinking a latte, on a train, or walking through a transportation terminal may seem like a good idea, but it’s only safe if the Internet connection is encrypted. If it’s not, scammers can intercept your personal information and steal your identity. Most mobile hotspots are not encrypted.

Look for https at the start of the Internet address. s stands for secure. And the Federal Trade Commission warns that you should “look for https on every page you visit, not when you sign in.”

You may not see the https when you use a smartphone, but you’ll know if the connection is encrypted if you are asked to enter a password or code.

If you do a lot of shopping on the go, you might want to set up a VPN or virtual private network. OpenVPN is a popular free service. Apple, Google and Microsoft all support VPN.

Be aware that using public Wi-Fi for financial transactions is risky, period.

2. Log out if you find yourself on an unencrypted page.

3. Watch out for fake sites posing as the real thing

Some scammers set up fake sites using names of well-respected retailers. Look at the URLs to make sure that they match the retailer’s name exactly.

Don’t click on links. Type the name of your retailer in yourself.

4. Use credit cards

Shop with credit cards to protect yourself. Credit cards offer purchase protection and fraud dispute resolution. Don’t use debit cards that link directly to your bank.

5. Print or save your receipts

If there’s a dispute, you want those receipts. Print them out and keep them.

6. Read the fine print

Read the fine print about what you intend to purchase. Watch out for words like refurbished (that’s not new), vintage or close-out. The FTC says that “brand name products with bargain basement prices could be counterfeit.” So take care.

7. Careful with shopping apps

Shopping apps are great, but they also collect a lot of personal information. Make sure you know what they gather and what they do with it.

If pay with an app you may not have the same purchase protection as you do with a credit card. The FTC found that some app user agreements say the companies don’t take responsibility for helping you if you run into a problem.

So you might want to comparison shop with an app and buy with a credit card.

Safe shopping and enjoy the holidays!

Give Thanks For Immigrants

November 27th, 2014

by Nick Taylor

Today is a perfect time to give thanks for immigrants and remember the story of the original Thanksgiving.

The Pilgrims and Puritans arrived on these shores as immigrants. Like immigrants to America today, they came in search of a life they could not achieve at home. Religious freedom was one of their objectives. But that was just one component of a new life of opportunity that a boundless country, not yet formed, presented them.

Today’s immigrants come here for the same things the Pilgrims sought — opportunity and freedom. They don’t come looking for handouts. They come looking for access to things they can’t find where they came from. They’re willing to work hard at jobs others won’t do. They seek opportunities for education. They bring skills our country needs. And over time they become part of the multi-colored, multi-religious, multi-ethnic fabric that makes us unique among the nations of the world.

Thanksgiving isn’t just a day to eat and watch football. Or watch the Macy’s parade, even if your alma mater’s in it — I was proud to see my Western Carolina Pride of the Mountains band marching down Broadway this morning. At its best Thanksgiving is a day of remembrance of who we are and who we try to be.

Our goals alone prompt thanks today as well. We don’t always live up to them, but they remind us of bedrock human ideals. In a world where suffering and greed, corruption and cruelty dominate the news, America continues to represent the belief that men and women can live lives of substance and value, free from tyrannical demands.

My father was an immigrant. My mother’s father was as well. I’ll never know what they escaped. But I know what they found. For that we should all be grateful on Thanksgiving.

Winter Vacation Travel Warning

November 19th, 2014

by Nick Taylor

Chikungunya. It sounds like a tongue-twister or some kind of fusion recipe involving chicken. It’s actually much worse, and it’s affecting many people’s travel plans this winter.

Chikungunya is a mosquito-borne virus sweeping the Caribbean as well as Central and South America. It started to spike last winter and according to the Centers for Disease Control (CDC) “continues to spread with no sign of slowing down.” That’s why we’re passing on this winter vacation travel warning.

Before the outbreak, an average of 28 chikungunya sufferers returned to the U.S. from the outbreak zone each year. This year, through early November, 1,600 travelers came back with the disease. Some 800,000 cases have occurred in 37 countries and territories in the Western Hemisphere.

No one is sure why, but the mosquitoes that spread chikungunya bite mostly during the day. So travelers headed for Caribbean, Central and South America – where you’re going for some winter sun, right? – are advised to wear long-sleeved shirts and long pants during the day. Once you slather the sunscreen on your tasty bits that are still exposed, add insect repellent on top of that. And stay in air-conditioned or well-screened rooms at night.

Be especially careful if you’re over 65, have arthritis or underlying conditions including heart disease, high blood pressure, or diabetes. Travelers in these high-risk groups should let their doctors know about their plans.

The illness is rarely fatal, but it’s uncomfortable at best. Its victims, says the CDC, “typically develop fever and joint pain. Other symptoms can include muscle aches, headaches, joint swelling, or rash.” The joint pain can be severe and debilitating. And there’s no preventive vaccine and no specific treatment except time; victims usually recover in about a week, but some experience long-term joint pain.

If there’s any good news in all of this, it’s that unlike ebola, the chikungunya virus is not spread between people.

What Obama’s Immigration Reform Plan Means

November 16th, 2014

by SINDY NANCLARES

Maria Manzano stopped looking over her shoulder two years ago and now looks forward to an immigration reform plan that will help her family and millions of other undocumented immigrants.

The 29-year-old became became a temporary legal U.S. resident through the Deferred Action For Childhood Arrivals Program (DACA). The program gave her a Social Security number, a work permit and a real chance at a strong economic foothold in the country she calls home.

President Obama may soon issue an executive order to expand DACA to other young immigrants and set up a similar deferred action program for parents of U.S. citizens, legal residents and spouses, according to The New York Times. Maria’s family could benefit.

Her parents came to New York from Mexico 30 years ago. They worked, paid taxes and raised their children in the U.S., but they share a sense of unease with millions of other undocumented immigrants. “This reform would give peace of mind to my parents,” Maria said.

What Obama’s Immigration Reform Plan Means

A presidential order could ease the anxiety of millions and allow them to work legally. An estimated 3.3 million family members may become eligible for Social Security cards, work permits and drivers’ licenses.

The Obama plan would also provide temporary legal status for people who’ve lived in the U.S. for five years, regardless of whether a family member is a citizen or has temporary legal status.

Overall, the executive order would extend temporary legality to an estimated 8.5 million, according to the Migration Policy Institute in Washington.

Since his first election, in 2008, immigrant advocates hoped the President would set a new immigration agenda. But anti-immigrant factions in Congress, and Republican hostility toward Obama’s initiatives, made it impossible. Now, with big Democratic party losses in the midterm elections, the President apparently plans to side-step Congress completely.

But the prospect of a temporary solution, without the backing of both parties, worries some. Californian Noel Castro wonders what will happen to his parents if they sign up for a program that gives them legal status, only temporarily, and Republicans take the White House in 2016. A new president could rescind the executive order.

“The government would have all of my parents’ information…and if the Congress cancels the measure in the future, it would be easier to catch them and deport them,” Castro says.

Deportation remains a real concern.

The Obama administration vigorously enforced deportation and sent more than 2 million packing in a failed effort to woo Republican support for immigration reform. Instead immigration advocates dubbed him the Deporter-in-Chief and lost confidence in his ability to achieve reform.

But the executive order would switch the emphasis and focus on deporting criminals and those caught at the country’s borders.

President Obama has not confirmed the leaked details of the reforms but we may know more this week.

See our report Biometrics Not So Scary

And How to Apply For Deferred Action

Comment and let us know what’s going on with you.

Banking News, Money News, News

Protection For PrePaid Card Users

Quote November 13th, 2014

If you use prepaid cards instead of a checking account, you’ll applaud the latest move by the Consumer Financial Protection Bureau (CFPB). It plans to institute federal protections for prepaid card users similar to those that cover people who rely on checking accounts

Prepaid card use exploded from $1 billion in 2003 to nearly $65 billion in 2012, and CFPB projections indicate consumers will load nearly $100 billion on these cards by the end of 2014.

So it makes sense to offer protections already in place for checking accounts and credit cards.

PROPOSED PROTECTIONS:

1. Easy and free access to account information

The CFPB proposal would require financial institutions to either provide periodic statements or make account information easily accessible online and for free.

Unlike checking account customers, prepaid users typically do not automatically receive statements. The proposal would ensure that consumers are able see their account balances and a history of their transactions and fees.

2. Resolve Errors

When a consumer finds an error, new rules would require the financial institutions to work with them.

Now prepaid customers who get double-charged for a transaction, or get charged an incorrect amount, find it difficult to fix the problem. This proposal would require financial institutions to investigate errors that consumers report and resolve them in a timely way.

3. Protection Against Fraud and Loss

The proposal would protect consumers against unauthorized, erroneous, or fraudulent withdrawals or purchases. The rules would limit consumers’ responsibility for transactions they did not authorize and create a timely method for them to get their money back. Customers’ liability would be capped at $50 if they notify the financial institution as soon as they discover the loss.

Know Before You Owe Disclosure

The Bureau’s proposal also includes new information to provide consumers with disclosures about fees and the costs of using the card.

Credit Protections

The CFPB proposals protect consumers who use a prepaid card like a credit card. They would be entitled to the same protections that credit card users have.

1. Ability to pay

New rules would require prepaid companies to make sure consumers have the ability to repay the debt before offering credit.

2. Regular Statements

Prepaid companies would have to give customers the same monthly periodic statement that credit card customers receive.

3. Reasonable time to pay and limits on late fees

Customers would have at least 21 days to repay their debt before they are charged a late fee, just like credit card customers. And the companies would need to lay out a schedule of late payment fees.

4. Limited fee and interest charges

Total fees could not exceed 25 percent of the credit limit during the first year. Card issuers generally are prohibited from increasing the interest rate on an existing balance unless the cardholder has missed two consecutive payments.

5. Thirty-day waiting period

Consumers would have to wait 30 days after getting a prepaid card before a company could offer them credit.

These proposals won’t go into effect for 90 days and in the meantime anyone who objects can let the CFPB know.

Danger of Pension Advance Plans (5)

November 13th, 2014

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In Washington, Pennsylvania Congressman Matt Cartwright introduced legislation aimed at protecting federal and military retirees. Congressman Cartwright told us his legislation would close loopholes in federal law. He said it “. . . expands Truth In Lending Act provisions to any situation where a federal or military pension is used as a consideration for an advance.” The bill also sets the interest rate for these loans at 6 percent and it would allow people who find themselves in illegal deals to sue.

That’s another wrinkle. Contracts like the one Darren signed specifically say that you can’t sue to get out of the contract or join a class action lawsuit to recover damages. “It makes it very difficult for them to bring a claim for fraud,” Florida attorney Silver said.

Darren filed complaints with the California attorney general and the federal Consumer Financial Protection Bureau (CFPB). Neither would comment about Darren’s case. But a spokesperson for the CFPB said the bureau is monitoring the advance pension issue.

We called and emailed Pensions Annuities & Settlements LLC. The person who answered the phone asked me to direct the emails to someone at LumpSum Pension Advance. So far, we haven’t heard a thing.

In the meantime, Darren has little recourse. He said callers representing Pensions Annuities & Settlements LLC told him the company would take him to court if he didn’t keep up his payments.

Until there are regulations to curb the industry, National Consumer Law Center’s Stuart Rossman advises, “If you need to borrow money you will be much better off going to a community savings and loan or cooperative. You’ll get a much better deal.”

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Danger of Pension Advance Plans (4)

November 13th, 2014

←PREVIOUS

AARP Vermont State Director Greg Marchildon first noticed online ads for these companies last year and became concerned. “We’re the second fastest aging state in the nation, behind Maine. And about seven in ten Vermonters rely on Social Security and their pensions, if they are lucky. So we wanted to put a cabosh on this before it really got started,” he told us.

Marchildon went to state Treasurer Beth Pearce and she embraced the issue. She immediately teamed up with legislators to craft a bill that Governor Peter Shumlin signed into law in April. Treasurer Pearce told ConsumerMojo, “We don’t want companies charging an inordinate amount of interest and putting elders at risk. The newly-enacted law is about consumer protection.”

Consumers all across the U.S. need similar protection against pension advance schemes and that’s why AARP is working to convince states to consider new laws.

Regulators are also taking a hard look at what’s going on. New York and Massachusetts launched investigations into companies that advertise advance or lump sum settlements on pensions. New York Governor Andrew Cuomo said, “. . . backdoor high-interest loans will not be tolerated in our state.” The New York Department of Financial Services subpoenaed records from a number of companies, including Pensions Annuities & Settlements LLC., the company Darren did business with.

CONTINUE→

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Danger of Pension Advance Plans (3)

November 13th, 2014

←PREVIOUS

He went back to the Internet and couldn’t find PAS. “The company website disappeared. I finally located a phone number and talked to someone. The man said I have to pay off $24,300, the full amount of the five-year contract. But I didn’t see anything in the contract that says there’s a prepayment penalty.”

The contract Darren shared with us lays out the details. Although he insisted it wasn’t clear to him and wasn’t explained, he said he believed the company representative who negotiated the deal. “I take a person at his word. He told me about the contract and I thought it was okay,” Darren sighed.

Broward County, Florida attorney Scott Silver told us he represents dozens of former military members who’ve had similar experiences with pension advance companies. “Clients come to me desperate to repay these loans without paying usurious interest rates and they find themselves trapped and unable to to make the monthly payments.”

In Darren’s case, the word “loan” doesn’t appear in the contract. The language describes him as a “seller,” and that apparently is a device commonly used in this industry.

“Seller is a cosmetic way to avoid the truth-in-lending laws,” AARP attorney Jay Sushelsky says. “By not calling the person a “borrower,” it’s not a loan. It’s an advance purchase or sale. So it takes the transaction out of a whole regime of state and federal lending laws.”

Federal and state officials have begun to take notice. Vermont is the first state in the nation to pass legislation that defines these pension advance deals as loans and requires lenders to apply for a license with the state.

CONTINUE→

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