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A new FTC study has
found that one in four people who participated in the survey
spotted errors on their credit reports that might affect their credit scores. A credit report
includes information about where you live, how you pay your bills, and whether
you’ve been sued or have filed for bankruptcy. Creditors, insurers,
employers and others use that information when they consider your applications for
credit, insurance, employment, or housing. So how do you know if your report is
error-free? Go to
annualcreditreport.com to get your free credit report, then dispute any errors
you find. Learn more at ftc.gov/freereports.
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A tax relief company that allegedly pulled in more than $100
million on promises it could lower people’s tax debts has agreed to give up
more than $15 million in cash and assets — including a home in Beverly Hills
and a 2005 Ferrari — to settle FTC charges. According to the FTC, American Tax
Relief told people that they qualified for IRS programs that would
significantly reduce their tax debts, and that the company had successfully lowered
the taxes of thousands of people. But people who paid the company just got
excuses, not results, the FTC says. Read Tax Relief Companies for more.
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At the request of the FTC, a federal court has
stopped an alleged pyramid scheme that affected more than 100,000 people, in
some cases targeting Spanish speakers. The FTC says Fortune Hi-Tech Marketing
(FHTM) promoted
itself as a path to financial independence, telling people they could
make lots of money selling FHTM’s health
and beauty products, as well as products and
services from Dish Network and cell phone companies. But nearly everyone who paid
to join FHTM lost more money than they ever made — or only made money from
recruiting others to join, the FTC says. For more on recognizing a pyramid
scheme, read Multilevel Marketing.
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The FTC has asked a U.S. district court to
shut down an alleged cramming operation that added more
than $70 million in phony charges to people’s phone bills. According to the
FTC’s complaint, American eVoice and its related companies “crammed”
charges ranging from $9.95 to $24.95 a month onto bills for services that people
never ordered, didn’t authorize, and often didn’t know they had. The Missoula, Montana-area defendants also transferred
proceeds from their illegal cramming operation to Bibliologic, a
purported nonprofit, the FTC says. For more on spotting crammed charges on
your phone bill, read Mystery Charges
on Your Phone Bill.
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A leading cord
blood bank has agreed to settle FTC charges that its inadequate security
practices contributed to a breach that exposed the personal information of
nearly 300,000 people. Cbr Systems is a leading provider of storage for
newborns’ cord blood and tissue. These contain stems cells, which researchers
are investigating for possible uses in treating some conditions. According
to the FTC, Cbr didn’t use reasonable security for customers’ information:
Social Security, credit card, debit card, and checking account numbers, card
expiration dates, drivers’ license numbers, and contact information. The
settlement requires the company to submit to independent security audits every
other year for the next 20 years.
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"Your credit report
has information about your finances and your bill-paying history, so it’s
important to make sure it’s accurate. The good news for consumers is that
credit reports are free through annualcreditreport.com, and if you find an
error, you can work with the credit reporting company to fix it."
— Charles
Harwood, Acting Director, Bureau of Consumer Protection
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The FTC has released the results of a first-of-its-kind study of
debt buyers — companies that buy people’s debts from creditors for pennies on
the dollar and try to collect on them. Collectors with insufficient information
may approach the wrong people, try to collect the wrong amount, or both. The
report finds room for improvement in the information debt buyers have when they
contact people and try to collect.
FTC staff have
urged the Supreme Court of Tennessee not to adopt proposals that would
unnecessarily restrict truthful attorney advertising. Proposals before the
Court would prohibit the use of actors, models, and certain background sounds, require
pre-screening of all attorney ads, and place other limits.
The FTC has mailed more than 70,000 refund checks totaling $7.4
million to people who lost money to a scheme that allegedly sold bogus “platinum”
credit cards and illegally debited people’s bank accounts. For more, go to
ftc.gov/refunds.
The 15th
annual National Consumer Protection Week (NCPW) is March 3 - 9. Government
agencies, advocacy organizations, and private sector groups from coast to coast
have come together to share information about privacy protection, money and
debt management, recognizing identity theft, frauds, scams and more. Want to
get involved? The FTC has resources to help at ncpw.gov.
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IN OTHER NEWS:
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SHARE THIS:
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Tax season is here. With it comes tax-related
identity theft. Here’s what you need to know: http://go.usa.gov/46F3
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Looking
online for your Valentine? Unfortunately, cupid can sometimes be a con artist
in disguise: http://go.usa.gov/46FT
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Have
plans for National Consumer Protection Week, March 3 – 9? Get ideas at ncpw.gov
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The
FTC’s Robocall Challenge has wrapped up with 700+ submissions. Check out the Challenge
submission gallery: http://go.usa.gov/46F9
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