Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, October 27, 1993 TAG: 9310270071
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
SOURCE: SANDRA BROWN KELLY
DATELINE: LENGTH: Medium
The man phoned the company, saying he darn well didn't have to call anybody to refuse a service. But when he returned home from work a day later, he found a naked yard. The topsoil had been skimmed off.
The story couldn't be verified, but if it's true, it's a good example of the bizarre things that happen to consumers.
We're regularly misled, cajoled and coerced.
The Federal Trade Commission estimates that we lose at least $10 billion every year on telemarketing schemes, $3 billion in credit and credit-card fraud, $50 billion to $80 billion in health schemes, $20 billion in insurance, $10 billion in investments and an unknown amount to home improvement and auto repair and sales scams.
The top 10 areas of consumer complaints to the Virginia Division of Consumer Affairs in 1992-93 were: automotive service and sales, mail-order houses, landlord-tenant complaints, health spas and exercise clubs, housing service or repair, credit, retail stores and brokers, travel agencies and tours, and furniture.
More and more laws protect consumers from themselves and from unprincipled business people, but the best protection is to be skeptical and aware of how to protect yourself.
This week - National Consumers Week - is a good time to get smart.
Just this week, Virginia warned that cars from the flooded Midwest are showing up in other parts of the country. That means if you're buying a used car, you should check it closely for any evidence it has been a flood victim.
Some ways to do this:
See if floor mats match the rest of car's interior.
Look under the floor mats to see if rust has bled through to the carpeting.
Check the trunk for seams and welds that might show rust in crevices.
Look under the carpet in the tire well to see if there are signs of rust.
Look for fresh paint in unusual places. To cover rust, the engine and interior fittings, as well as the undercarriage of the car, may be newly painted. Even the tires may be painted.
Another clue is to check if the alternator has been replaced, something that often happens with a flooded car.
Be aware that the strong odor of disinfectant or air freshener can be masking the smell of mildew.
Price also can be a clue. Flooded cars often are priced $500 to $1,000 below similar vehicles.
It takes similar scrutiny to stay ahead of all the other "deals" that are out there waiting to grab you. To get you thinking about being an aware consumer, here a test of your consumer savvy:
1. If you get a notice or a call saying you have definitely won a prize, Virginia law says:
A. You can be required to pay up to $500 to claim a prize
B. You must receive the prize within 10 days without any obligation
C. You can be asked to provide personal financial information to receive the prize.
2. If a door-to-door or telephone salesperson sells you something, by law how many days do you have in which to change your mind?
A. Three.
B. None.
C. Six. 3. If you receive merchandise that you did not order or request, Virginia law says you:
A. Must pay to return the merchandise.
B. May consider the merchandise an unconditional gift and do whatever you want with it.
C. Must pay for the merchandise.
4. If you hire a credit repair company to fix your bad credit, the company:
A. May collect half the fee before performing the agreed-upon services.
B. May receive the entire fee before doing the work.
C. May not charge or receive any money from you until it has performed all the services to which it agreed.
5. You may suspect a fraud if the caller:
A. Asks you to send money in advance by some means other than U.S. mail.
B. Asks for your credit card number or expiration date for verification.
C. Claims the investment you are offered is a "sure thing" and has no risk.
Answers: 1. b; 2. a; 3. b; 4. c; 5. a, b and c
by CNB