Money

Interest only loans are a dangerous practice disguised as a helping hand. A lender offers you a home loan, even a refinancing loan, in which you pay only the interest. While this can look like an attractive way out of a financial crisis, it is at best a short term solution and at worst a road to losing your property.

Your payments may be lower in the beginning, but eventually you must pay on the principal — the amount that you borrowed. At some point, often after three years, your payments increase dramatically or may even be due in one lump sum called a balloon payment. Often, people can’t make these increased payments and in many cases, they have trouble refinancing again for a more reasonable loan. People can lose their houses and have their credit destroyed.

Be very careful when considering an interest-only loan. If it is the only loan you can afford, chances are you can’t afford the home at all.

A typical scam practiced by insurance lenders is ‘mortgage insurance’. There is nothing actually illegal about mortgage insurance, but it is an unnecessary addition to a loan. Most mortgage insurance involves some sort of guarantee that your mortgage will be paid for you if you are out of work or incapacitated. This can be a good thing, although some agreements are very hard to collect on and all agreements should be read carefully.

The problem comes when lenders try to slip the payment in without telling you what it is, or when they tell you that it is a requirement for your loan. Some lenders may even try to force you to take the payment by telling you that it will ‘take days’ to rewrite the agreement. If they do, tell them that those are days that you can use to notify the FTC, and find a better lender!

Remember:

• Mortgage insurance is not the same as home insurance
• Always be clear about the details of any loan
• Always be ready to cancel an agreement if you suspect you are being ripped off

When an Internet Service Provider offers you a free trail period, it can be a good way to check out what they offer, but be careful. In most cases, these providers will require you to sign up for their service and provide them with a billing method such as a credit card number before they will let you use the ‘free trail’. At that point, it will be up to you to end your agreement before the free trial runs out. Do not expect the provider to notify you when your trial period is through.

Be sure to find out what you are agreeing to once the ‘free’ period ends. Some providers will try to lock you into deals lasting a year or longer. Most providers make it easy to sign up online, but to end your agreement you will usually have to call the provider. When you call, the person who answers will usually be a salesperson whose job is to keep you from canceling. Don’t let them talk you into something you don’t want.

Ads for new computers that are ‘free’, ‘low cost’ or ‘$199′ are generally scams. These ‘free’ computers usually require consumers to sign a service agreement or contract that can run hundreds of dollars. Read all offers carefully. If there is a rebate, make sure you qualify and are willing to go through the hassle of trying to collect. If they want you to sign up for a service, make sure that the service is something you want and that the charges, terms, and length of the agreement are something you can live with. There are many wholesale and retail options when buying a computer. The best strategy, when buying a computer, is to compare offers from several different sellers and avoid deals that come with additional agreements or mail-in rebates.

Unlike sham telemarketers who try to convince people to spend thousands of dollars on an investment scheme, fraudulent travel telemarketers usually try to sell you low priced club membership or vacation offers. The offers sound realistic and are designed to appeal to anyone who is looking for a quick trip. These trips, however, almost always have hidden charges or will take your money without ever giving you anything but the runaround. A simple rule of thumb is to never buy anything from a telemarketer. If you want to book a cheap vacation, try a more reputable discounter such as priceline.com or hotwire.com.

Most ‘Work From Home’ opportunities you read about in the paper, on flyers, or see on television are scams. Know that going in. This is one area in which there almost no actual legitimate opportunities. Chances are, any advertisement you see that offers you the ability to make money from home is looking to scam money from you, not help you make money. Almost none of these offers are legitimate, so your first rule of thumb should be to assume you are looking at a scam until proven otherwise. Typical “Work From Home” schemes include: medical billing, envelope stuffing, assembly or craft work, surveys, and sales.
Work from home scams operate like this.

1. They make statements such as:
* Make Good Money!
* Earn Thousands Every Week!
* Unlimited Income Opportunity!
* Be Your Own Boss!
* Home Based Cash Machine!
* Six Figure Income From Home!
* Work at Home Moms!

2. They use the terms honest and guaranteed as often as possible.

3. They advise you to *Act Now!

4. They include statements from people who’ve had great success and ‘Made Thousands’.

5. They ask you for money to pay for the plan or set up your franchise.

6. Their mailing address is in another state or country.

7. They want you to pay with a money order or wire transfer.

Even if the plan you are looking at doesn’t include all of these element, remember the rule of thumb — assume you are looking at a scam until proven otherwise.

Always use a secure browser that encrypts or scrambles the purchase information you send over the Internet. At this point, Internet Explorer is not considered secure. Try Firefox instead. When submitting information, look for the “lock” icon on the browser’s status bar, and the phrase “https” in the URL address for a website.

When doing business with or through a web site, check the site’s privacy policy. Make sure you understand what information of yours the site might share with others. If you cannot find a privacy policy or are uncomfortable with the policy you find listed on the site, avoid that site.

Go over the refund and shipping policies of any business website you plan to order through. Make sure you are comfortable with those policies before you place an order.

Never disclose personal information such as your phone number, social security number, address, account numbers or even e-mail address unless you feel the site has a legitimate reason to request that information and you know how they plan to use it.

Avoid using sites you don’t know or companies you don’t know to do business with over the Internet. Check out a company’s background and make sure it is legitimate.

Never download files sent to you by strangers. Never follow hyperlinks provided by people you don’t know.

Keep records of your online transactions. Keep track of the e-mail sent by merchants with whom you’re doing business. Merchants often send important information regarding your purchases. Always verify that the e-mails came from the same location as the company’s website.

Track your monthly bank and credit card statements. Check for any errors or unauthorized purchases. If your credit card, debit card or checkbook is lost or stolen contact your bank or credit card company immediately. If you suspect someone is using your accounts without your permission contact your bank or credit card company immediately.

Never take unsolicited calls when you are busy. If you can’t give the salesperson your full attention and you do want to talk to them, ask them to call back at a better time.

Immediately reject and hang up on unsolicited callers trying to convince you that you are placing an order or entering an agreement if you do not want to do so.

Never agree to something on the phone just to get rid of a pushy caller — it is possible to be held legally accountable for an agreement over the phone.

Be wary of follow-up calls — They may state that they are verifying details, but they could be trying to scam you into entering into an agreement.

If you are unclear about any details, take your time and ask questions.

Don’t be pressured into paying for services you have not agreed to, contracted for, or that have not been provided. Do not pay for services or goods that do not match what you have agreed to. If you are threatened with debt collection or bad credit reports, tell them that they will need to file a court case and that you will dispute any attachments to your credit rating and will report them to the better business bureau or FTC.

“You have therefore been approved for a lump some payment of $450,890 — Congratulations.” That letter, with a handwritten address on the envelope, had a Dandridge, Tennessee woman celebrating. “I started reading it, was real excited, thought I’d really won,” the only condition for Bonnie Myers to be the big winner: cash the cashier’s check sent to her and send that money back to this so-called lottery corporation in Canada.

“They wanted me to get the $4,480 and wire it,” explains Bonnie, “within 48 hours, they would have a FedEx truck deliver me $450,000 dollars.”

Fortunately for Bonnie, she tried depositing the check first. Her bank told her it was not legit. “I would’ve been out $4,000, would’ve had to pay it back.”

View Article at lotterypost.com

A recorded-voice relaying the message “Thank you for calling. Good-bye” is the last word two area residents heard from a fraudulent loan company after each sent more than $1,000 in fees in attempts to secure personal loans.

He said he was leery of the offer, but all the information that was faxed to him was done on Wells Fargo letterhead and he thought it was legitimate.

View Article at sequoyahcountytimes.com