Consumer Tips

Have you ever found yourself embroiled in a dispute with a neighbor or business and felt paralyzed with the realization that things might have turned out different “if only you had….” Nothing is more frustrating than playing Monday Quarterback when you were the Sunday quarterback who fumbled the Big Game.

Here are some tips for preventing a dispute before it occurs:

• Get it in writing . When negotiating a business deal, whether it is as simple as moving furniture or as complicated as establishing a business, be sure to put everything in writing.Even if the agreement you have is with your family or friends and you are absolutely sure that everyone will honor the agreement you have worked out, the terms of your agreement should be written out and saved.There are several reasons for this. First, if anything should happen to any of the partied involved, it will provide documentation as to the agreement. Second, even among people with the best of intentions, memories fade, and it is often helpful to put everything in writing for future reference.Don’t be afraid of insulting someone by asking them to put their assurances in writing!Your contract should include:
  • the names of the parties involved
  • the date
  • the specifics of the agreement contemplated
  • the date the action is to begin
  • the date the action is to end
  • all contingencies you can think of – for instance …
    • what happens if either party does not perform according to the contract?
    • what happens is either party cannot perform according to the contract? (e.g. weather problems)
  • the payment that is to be made
  • the time period for making the payment
  • signatures of all parties involved

  If the agreement is important or you are not certain about what other matters should be put in the contract, you should consult an attorney.

  If you agree to any changes from your original agreement, be sure to put the changes in writing too, and treat it as a separate agreement, signed by all parties.

• Make an informed decision. Whether you are in the market for a service or product – doctor, lawyer, rutabaga, car, car mechanic, electric razor or contractor – it is always a good idea to wait to make your decision until you are certain that it is an informed decision.And how do you make an informed decision?
• Shop around. Ask questions, read ads, consult Consumer Reports, ask your family or friends for referrals – do everything you can to learn as much about a product, service or professional before you become committed to hiring or purchasing.(Consumer Reports is a monthly periodical which provides information and advice on goods, services, health and personal finance. It is an excellent reference and may be consulted before purchasing items ranging from peanut butter to toaster ovens to new or used automobiles.)
• Check out references. Check out references before you enter into a contract. If your prospective tenant give you references on her application, call those references! Ask questions about her reliability, why she left her former residence, etc.If the contractor you’re thinking or hiring gives you references, call those references. Ask about the service received. Ask to see the work performed by the contractor. Ask, ask, ask!
• Check on credentials. Make sure that the person you are about to hire is properly licensed for the job they are to perform, if it is the type of work for which a license is required. For instance, if you are considering hiring a contractor to repair a rock wall at your home, be sure the contractor is properly licensed by the Department of Commerce and Consumer Affairs by calling (808) 586-3000.
• Check prior complaints. Check to see whether the person or company you are considering hiring has had any complaints filed against them with the Department of Commerce and Consumer Affairs. You can do so by calling our offices at (808) 587-4272 and the Better Business Bureau at (808) 536-6956. You can also Check Out a Business Online. These links will take you directly to our online complaint searches:
  • RICO Complaint History Search
  • OCP Complaint History Search
• Make sure you can return your products. To ensure that you will be permitted to return goods, be sure to:
  • Check for signs in the store which set out the store’s policy on refunds or exchanges, before you buy. If you do not see such a sign, ask the salesperson for the store’s policy. Once you read the sign, confirm the sign with a store representative.
  • Save your receipt.
  • Save all tags, cards, booklets, instructions and packing material.
  • Make sure the goods are not damaged. Stores are not required to accept goods for refund or exchange if they are not in the same condition they were in when first purchased.
  • Return the goods as soon as you decide that you don’t want to keep them.
  • Report a defect as soon as possible. Many stores limit the time you have to report the defect. If that deadline is missed, you may have to send the item to the manufacturer for repair under the warranty.
  • Be careful of your selection of specially ordered goods or goods such as undergarments and swim suits. Many stores exclude such items from their general policy on refunds.
  • If you wish to return an item you received as a gift without the receipt, some stores may refund only at the lowest sales price. A receipt will ensure that you get full credit for the return.
• Never sign a document or paper unless and until you understand the full meaning of what you are signing.
• Be reasonable. It is not advisable to take expensive, time-intensive action for “the principle” of the matter. It is rarely worth it to spend $500 to enforce a contract for the sale of a $200 bike.

MAKE YOUR POSITION CLEAR WHILE REMAINING OPEN AND FLEXIBLE

If you find yourself in a dispute with another party, the first approach to resolving it is to communicate with the party who is in the best position to help you. Communication, whether oral or written, should be direct and concise. Find a time and a place convenient to both parties to discuss the problem. for instance, if you are concerned that a motor vehicle salesperson misrepresented the features of the car you purchased, call the person or their supervisor and schedule an appointment to talk about it. This way, you will have their full attention when you are discussing the problem.

Once you have scheduled your meeting, take a deep breath, explain the nature of the problem and ask what will be done about it. If assurances are made that the problem will be taken care of, ask that they be made in writing, with both the salesperson and manager’s signature.

Try to remain as open as possible and mindful of the other party’s position. Name-calling, threatening or bullying the party with whom you are in conflict will probably not be as effective as explaining how you have been “wronged” and what you want done to correct the situation. If it is impossible or unreasonable to have your way entirely, try to come to a “middle ground” where both of you will be satisfied with a compromise of your two positions. Being “reasonable” or “rational” does not mean that you should forego your rights. It just means that you explain your position in a calm and intelligent manner and that you do not make demands that are unfair and impossible to meet.

WRITE A “DEMAND” OR “CONFIRMING” LETTER

No matter how many times you have orally explained your complaint and asked for assistance or relief, it never hurts to put it all in writing. A brief, concise letter to the appropriate party often works wonders – it will also make you feel better since it gives you a productive way to focus your energy and may lead to the resolution of your complaint.

To Make your Problem and Position Clear

Sending a letter to the appropriate person to make a complaint or request action is often a good idea. Many times, consumers remember telephone or personal conversations but do not remember the dates, to whom they spoke, or the precise representations made. A letter is an effective tool to clearly explain the problem and the chronology of events leading up to the problem. A letter also provides proof that you put a particular person on notice of the problem and requested action on a certain date.

In writing your letter, keep in mind that the person reading it may have to be told the exact nature of your complaint. A chronological report is an effective method to discuss the problem.

The following is an example of a letter used to explain the problem and make a position clear.

To Put the Ball in the Opposition’s Court

Have you ever gotten off the phone and thought to yourself, “OK, well, now what am I supposed to do?” You’ve told someone about your problem, but you’re not clear on what, if anything, they’re going to do about it, and you can’t remember if or when they are going to get back to you.

A good way to handle this is to write a letter explaining what you are going to do, what you expect them to do, and when you expect to hear from them. This way you can prevent a situation where you’re each waiting for the other to take action and nothing gets done.

The following is an example of a letter written to clarify the actions which are to be taken by each party:

To Establish a Record for Later Use

Have you ever thought, “Why would I want to write a letter asking them to take action? They’re not going to do anything no matter what I say?” Well, you may be right. And that is precisely why you should be writing a letter.

Written documentation is very effective in presenting your case. It shows you have put someone on notice, so that you will be able to prove later that you advised someone of the problem and requested, but did not receive, action.

For example:

Even as he licks his postage stamp and sends his letter off, Rodney fully believes he is no more likely to get action from this lazy landlord than he is to win the sweepstakes. However, if his landlord later withholds Rodney’s security deposit or tries to hold Rodney responsible for lease, Rodney’s copy of this letter will be useful in proving that he put his landlord “on notice” of the defect in the house. If the landlord decides to ignore the letter, this too may be useful if Rodney must later prove that he was “constructively evicted” from his rental home.

For Your Own Peace of Mind

Have you ever talked with someone and found yourself so angry that you knew you had long since stopped being effective and were bordering on homicide? Or been so upset about the run-around you’ve been given that you finally vented all of your frustration on the last person to whom you were referred?

Sometimes it helps to simply stop talking, either because it’s clear you are not talking to the right people (i.e., those who are in a position to actually do something for you), or because you have gone beyond the point where you can effectively communicate your position.

At such times, it may help you (as well as the person to which you are about to scream) to sit and write your story out to someone who is in a position to do something about it. If nothing else, you will feel that you are doing something constructive, and it may prevent a possible assault conviction!

For example:

WHY YOU SHOULD WRITE A “CONFIRMING” LETTER

There are probably times that you wished you had recorded a conversation after a person appears to be wavering from his or her original representations to you. Or that you wrote down the name of the person who told you Company X would be sending you your money back and the day you took the call.

Writing a letter confirming a conversation is an effective way of memorializing an oral conversation so that a person will both remember and hopefully, honor, representations made to you during that conversation.

The most important element in writing a confirming letter is timeliness. The letter should be written as close in time as possible to the conversation you are confirming. It’s always a good idea to write the letter no more than a day or two after the conversation has taken place. This way, it will still be fresh in everyone’s mind.

The following is an example of a letter used to confirm a conversation:

WHAT YOUR “DEMAND” OR “CONFIRMING” LETTER SHOULD COVER

Your demand or confirming letter should respond to each of the following questions:

Rule of thumb: Keep on track! One type-written page containing no more than five or six paragraphs should do it.

Be clear, reasonable and rational about what you want. Do you expect immediate and decisive action? If so, let them know. Explain what you want, whether it’s a refund, and apology, a replacement, or a change in policy. Being “reasonable” does not mean that you give up any of your rights. It just means that you do not ask for more than what is realistic under the circumstances. And remember: your chances of getting what you want are better if you are rational in your approach.

Provide copies of appropriate documentation. If you are writing about an item you purchased, you may wish to provide a copy of the receipt. If you are complaining about the 14 times you have had to take your new car in for repair, provide copies of the repair orders. If there are too many to include, make it clear that they will be provided if requested. Keep all originals in your possession.

Type your letter if possible. No one likes to read a letter that is illegible. Your chance of receiving a favorable response is generally more likely if the letter is typed, neat, and short.

Write to a responsible person. If you are unsure of the person who is in charge, call the company and ask.

For corporate headquarters, addresses, or officers’ names and addresses of businesses in this state, contract the Documents Information and Processing Branch, Business Registration Division, Department of Commerce and Consumer Affairs, at 586-2727.

For national companies, you may consult with Standard & Poor’s Register of Corporations, Directors and Executives, which is available in the library.

Send your letter certified, return receipt requested. By asking the post office to send your letter this way, you will have proof of mailing the letter and the letter’s receipt. Although this service will cost a few additional dollars, it may prove worth the additional expense. Be sure to save your certified mail and return receipt.

Save a copy of your letter and all correspondence. If you don’t get a response within a month or so, write a second letter stating you are still waiting for a response to the attached first letter you wrote. You may wish to consider sending copies of the letter (both the first and second) to other responsible people within the agency or company to which you are writing.

Send copies to the appropriate parties. If you are writing to let your landlord know that the contractor has told you that your house presents a safety risk, you may wish to send a copy of the letter to the contractor.

Send copies to “higher-ups” when appropriate. If you are writing to an unresponsive sales manager at a local business, you may wish to consider also sending a copy to his or her supervisor.

Use your judgment as to what will get results. You may run the risk of alienating someone and may wish to “tattle” this way only if you are clear you will not receive an appropriate response from the person with whom you have been dealing.

Invite a response. Make your letter clear that you would like to receive a response to your letter. You may wish to place a deadline for this response and/or indicate what action will be taken if they fail to meet the deadline (e.g.: “If I do not hear from you by August 1, 1994, I will have no choice but to pursue legal remedies in this matter.”)

Send a thank-you note to encourage further cooperation. If you have received a favorable response to your letter, be sure to send a thank-you note. This encourages favorable responses to future problems which may arise with other consumers.

KEEPING A LOG OF YOUR COMPLAINT

A simple problem often mushrooms into a complicated, elaborate series of events or transactions involving many dates, people, and actions. The best way to remember all the important aspects of the problem is to keep a record or log of all the relevant events. It is also best to keep this record ongoing . In other words, do not try to remember dates, names and events three weeks after they happened. Instead, keep a log and write these things down as they occur.

Your log should be written chronologically and should include such information as:

• the full names and positions of all the people you have spoken or written to about the problem
• the date of each problem you have had
• the nature of each problem you have had
• the time you have taken to resolve the particular problems
• conversations you’ve had with persons about the problem and the dates of such conversations

For instance, the following log shows the various problems a couple had with their car. Logs kept by consumers often prove an effective method in establishing cases under the Lemon Law and my lead to an arbitration decision calling for a full refund of their money.

Attorneys are not always necessary to resolve disputes! If you understand the law that applies to your dispute and it is one that can be litigated in a small claims court, you probably do not need a lawyer.

If your small claims court case involves a claim for the return or retention of a security deposit in a residential rental agreement, neither party may be represented by an attorney. Also, attorney’s fees cannot be recovered against the losing party in Small Claims Court.

HOW TO SELECT AN ATTORNEY

Ask friends and family for referrals. Ask if they were satisfied with the attorney’s services.

Call the Hawaii Lawyer Referral & Information Service (LRIS) at 537-9140. LRIS is sponsored by the Hawaii State Bar Association and is comprised of attorney members in over 25 fields of law. No charge is made for those who call for referrals. (Neighbor island callers may call collect).

Consult the Yellow Pages in the phone book.

Consult Martindale-Hubbell Law Directory. This directory can be found in the public library and contains a roster of all members of the legal bar in the country. The directory gives brief backgrounds of the lawyers and describes the legal areas in which each law firm practices.

Try to find an attorney whose area of concentration is within the subject area of your dispute. For instance, it is unlikely that a corporate or patent attorney will be interested in taking on a landlord-tenant/security deposit dispute.

Find out if there is fee for the initial visit. Depending on the nature of your complaint, some attorneys charge for the first visit. Others offer it as a professional courtesy. You may want to ask whether they will validate for parking costs.

Ask what the fee is for the services performed. Some attorneys charge a flat fee for a specific job. It is likely you will be asked to pay a fee at an hourly rate. “How to Choose and Use a Lawyer,” published by the American Bar Association, and distributed by the Hawaii Bar Association provides a good description of the four principal methods for compensating a lawyer – retainer; contingent fee; specific job and hourly rate.

Ask what the “costs” are for the attorney’s services. Even with contingency fees which advertise that you need not pay fees if you do not recover, you may still have to pay the “costs” associated with your case.

Try to determine how many hours of fees you will be assessed for the work to be done, given various alternatives for dispute resolution (e.g. telephone conference, demand letter, lawsuit, trial arbitration).

Ask about the attorney’s experience in handling your type of dispute.

Ask the attorney to assess:

• the law applicable to your dispute
• your chances of succeeding based on the law and/or the facts
• whether the dispute is one that would best be resolved in small claims court
• whether and how negotiation for settlement of your dispute can be accomplished
• whether your claim would benefit by going through a mediation or arbitration service
• any privacy concerns you or your family may have
• the likelihood of settling the matter prior to filing a complaint/going to trial
• the likelihood of prevailing if the matter goes to trial
• the likelihood of collecting on the judgment if you win
• the risks if you do not prevail

Ask the attorney to estimate:

• the time it will take to have your case resolved
• the expenses involved in resolving your dispute (Expenses should vary given the time and effort expended. Ask for a breakdown for different stages in the dispute resolution process, e.g., before filing a complaint, after filing a complaint, through discovery, preparing for trial, through trial, after judgment, if there is an appeal)
• the time you will need to spend in resolving the case
• the amount of money you will be asked to deposit with the attorney as a retainer fee

IF YOU DECIDE TO HIRE AN ATTORNEY

Be sure you are provided with an agreement for services in writing.

The agreement should include:

• the hourly rate or fee
• the services to be performed
• your duty of cooperation
• the amount that you will owe if you fire the attorney prior to the completion of the case
• any conflicts of interest that the attorney may have in representing you and whether you agree to waive such conflicts

Ask your attorney to keep you informed of the progress of your case.

Request copies of all letters and documents prepared on your behalf.

Do not sign anything unless you understand what you are signing.

810 Richards Street, Suite 641
Honolulu, Hawaii 96813
531-0541

The American Arbitration Program provides dispute resolution services including arbitration and mediation.

1132 Bishop Street, 15th Floor
Honolulu, Hawaii 96813
536-6956

The Better Business Bureau (BBB) provides information about Hawaii businesses, particularly whether or not there are unanswered or unsettled complaints, or other problems; charities and other organizations that are seeking donations; consumer information; and helps resolve complaints against a company, including mediation and arbitration services.

The BBB is a private, non-profit organization funded by membership dues paid by businesses and professionals in the local community.

417 South King Street, Room 207
Ali’iolani Hale
Honolulu, Hawaii 96813
539-4980

Hawaii’s Center for Alternative Dispute Resolution Program helps mediate complex litigation, administrative and judicial disputes that affect the public interest or involve agencies of state and local government.

The Center provides expertise and technical assistance to resolve specific types of disputes; promotes the use of dispute resolution alternatives for conflicts that involve government agencies; educates government and community decision-makers and the public at large about the availability of dispute resolution options in Hawaii.

545 Queen Street, Suite 100
Honolulu, Hawaii 96813
528-7046

Hawaii State Bar Association sponsored
Attorney Referral at:

WWW.HAWAIILAWYERREFERRAL.COM

or

Call 537-9140
Hours: 8:30 a.m. – 4:30 p.m., M – F

Hawaii Lawyers Care and the Lawyer Referral & Information Service (LRIS) provide names and phone numbers of attorney members in over 25 fields of law statewide. (Neighbor Island callers in need of assistance may call collect for a referral.)

Evelyn P. Gomez
LRIS/ATTY-CLT ADMIN
http://www.hawaiilawyerreferral.com
1132 Bishop Suite 906
Honolulu, Hawaii 96813
Telephone: 808-537-1868
Fax: 808-521-7936

1108 Nuuanu Avenue
Honolulu, Hawaii 96817
536-4302
Hours: 10:00 a.m. – 12:00 noon, M – F

Legal Aid Society of Hawaii is a private, non-profit legal services organizations which provides civil legal assistance to eligible, low-income persons at no charge.

Legal Aid service areas include public entitlement rights, family law problems; housing; consumer rights (including debt collection, unfair sales practices, credit access, garnishment, and repossession); senior citizen rights; education; employment; and health.

The Legal Aid Society has offices statewide.

OAHU:
Honolulu 536-4302
Kahaluu 239-5707
Waianae 696-6321

BIG ISLAND:
Hilo 961-2851
Kona 323-3071

KAUAI: 245-4728

LANAI: 565-6089

MAUI: 244-3731

MOLOKAI: 553-3251

200 North Vineyard Boulevard, Suite 320
Honolulu, Hawaii 96817
521-6767

The Mediation Center of the Pacific provides mediation services to help those in conflict define issues, explore solutions and reach practical, workable and mutually satisfactory agreements.

Each party is charged a $25 filing fee, although services are provided regardless of an individual’s ability to pay.

Hawaii Links and Contacts

Helpful Consumer Numbers

Federal Links

Private and International Consumer Links

Other States’ Links

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The Federal Trade Commission (FTC), the U.S. Postal Inspection Service (USPIS), and your state Office of Consumer Protection want you to know how to spot the bandit in your mailbox—a scam artist who sends you fraudulent offers that are too good to be true. Most mailbox scams are variations on a theme. They usually promise easy money or “guarantee” that you’ll win a “fabulous” prize or vacation. The FTC suggests you toss any mail that fits these descriptions:

• An offer for a “free,” “prepaid” or “special” magazine subscription. It will end up costing you years of monthly payments for magazines you don’t want and could get elsewhere for less.

• A postcard that never mentions subscriptions but entices you to call a telephone number about a contest, prize or sweepstakes. You’ll pay for a toll “900” phone call and get a sales pitch for magazine subscriptions. The merchandise you are required to buy often cost far more than your guaranteed “prize.”

• An announcement that you’re the winner of a free vacation trip and just have to pay a service fee. “Free” is not the same as “fee.” More than likely, your “dream” vacation ends up a nightmare.

• A solicitation for a foreign lottery ticket or a secret system to make sure you win. It’s illegal to buy cross-border lottery tickets by mail or phone. What’s more, why would a stranger share a secret with you, especially by mail? Even worse, these bandits sell lists of names of people who have been conned before because the chances are they’ll take the bait again.

• An invitation to join a pyramid scheme that offers commissions for recruiting distributors, not for making sales. Without new distributors, the pyramid collapses and only those at the very top make any money. Pyramids are illegal.

• An advance fee loan or credit card offer that guarantees credit with no check on your financial history. A legitimate creditor would never make promises like this and you’ll pay assorted fees totaling hundreds of dollars.

• A slick pitch for credit repair at a price. Federal law prohibits upfront fees for credit repair. The truth is you can help yourself to rebuild a better credit record. Only time, a deliberate effort, and a personal debt repayment plan will improve your credit.

• An appeal for a phony charity that sounds like a legitimate one. It will give a P.O. Box instead of a street address and phone number and a sad story to snag your sympathy.

• A mailing that looks like an official government document that suggests contest winnings, unclaimed assets or other forms of instant wealth are waiting for you for a small fee. The government does not solicit money from citizens.

• Solicitation for a product or service you’ve never heard of that asks for your credit card or bank account number. Check out any unfamiliar product or service with the Better Business Bureau or Attorney General in your state or where the organization is located. Never give out financial information unless you know exactly where it’s going.

For more information about recognizing and reporting mailbox scams and other fraudulent practices, write to Consumer Response Center, Federal Trade Commission , Washington, DC 20580, or call 202-FTC-HELP (382-4357). To report mail fraud, contact your state Office of Consumer Protection (808-587-3222), call your local postmaster or the toll-free Mail Fraud Complaint Center at 1-800-372-8347.

Solicitations are among the 180 billion pieces of mail the U.S. Postal Service delivers each year. While most are for legitimate products, services and charities, others definitely are not. They’re the scams, sent by bandits to capitalize on your financial needs, naivete, optimism—or everyone’s fantasy of hitting the jackpot.

How can you tell the difference between an offer from a legitimate organization and one from an outfit that’s just out to steal your money? It’s no easy task. Sham solicitations are slick looking, skillfully written, and can be very convincing. But according to the Federal Trade Commission, the U.S. Postal Inspection Service, and your state Office of Consumer Protection, a savvy consumer can learn to see through a scam, and boot the bandit right out of the mailbox. That’s because most mailbox scams are just variations on the same themes: promises of easy money or easy credit or guarantees that you’re a winner of a fabulous or valuable prize.

Everyday Mailbox Scams

Magazines
You get a postcard that says nothing about subscriptions but asks you to call a telephone number about a contest, prize or sweepstakes entry. If you call, you may get information about contest prizes or drawing dates; you’ll definitely get a sales pitch for magazine subscriptions. The problem: Offers for “free,” “prepaid,” or “special” magazine subscription deals often leave you with years of monthly payments for magazines you may not want or could buy for less elsewhere. These are deals you can do without.

Prize Offers
The mail announces your eligibility for a contest or says you may have won a fabulous prize, but you’ll need to pay, at the very least, for a 900 phone number and shipping and handling, before you can enter the contest or collect the prize. Toss any solicitation that asks for money up front. The problem: Sham solicitations describe the prizes as being far more valuable than the merchandise they’re asking you to buy.

Foreign Lotteries
U.S. law prohibits the cross-border sale or purchase of lottery tickets by phone or mail. It’s that simple. However, if you’ve ever bought a foreign lottery ticket, you will receive more solicitations for lotteries or foreign investments in your mail. The reason? Fraudulent marketers buy and sell lists of people who have already fallen for scams. You also may receive solicitations that refer to secret systems to make you a winner. Toss them first; then ask yourself two key questions: If there was a secret system, why would a stranger want to share it with you? Why are you hearing about it for the first time through the mail?

Pyramid Schemes
You get solicitations in the mail for schemes that pay commissions for recruiting distributors, not for making sales. The solicitations usually ask new distributors to pay for high-priced products and claim that you’ll make money from the sales of the distributors you’ve recruited. These are pyramid schemes. The problems: First, pyramid schemes are illegal; they collapse when no new distributors can be recruited. Second, only those at the very top make money, at least until the law catches up with them.

Bogus credit card offers and advance fee loans
You receive offers for credit cards or promises or guarantees of loans on easy terms, regardless of your credit history. The fees for these “guaranteed” offers start around $100. The problems: Legitimate lenders never guarantee credit. If you get anything, it will be a list of lenders who will reject your application if you don’t meet their qualifications.

Pitches for Credit Repair
Your mail is filled with offers from credit repair companies and credit clinics that claim they can clean up your credit history—for a fee—so you can qualify for a credit card, auto loan, mortgage, or job. The problem: It’s illegal to charge an upfront fee for credit repair.There’s nothing a credit repair company can do for you for a fee that you can’t do for yourself for free. You can correct genuine mistakes or outdated information yourself by contacting credit bureaus directly.

Travel Scams and Vacation Prize Promotions
Certificates that congratulate you on winning an exotic trip or fabulous vacation offer may indicate that you are one in a million or “specially selected.” The problems: These unsolicited mailings land in millions of mailboxes, and the promoters couldn’t possibly make good on the promises. Inevitably, the cruise ship is a ferry, the hotel accommodations are shoddy, and you usually have to pay for an upgrade. In addition, scheduling the vacation at the time you want may require an additional fee.

Chain Letters
You receive a letter asking you to send a small amount of money to a name on a list, replace one of the names on the list with your own, and then forward the revised message. The letter may claim that the scheme is legal or that it’s been reviewed by a lawyer. The problem: Chain letters that ask you to send money are almost always illegal, and nearly everyone who participates in them loses.

Bogus Charities
Over half a million federally recognized charities solicit for contributions. Most are legitimate, but not all. A legitimate charity sends information about its mission, how your donation will be used, and proof that your contribution is tax-deductible. The problem: Some phony charities use names that sound or look like those of respected organizations. If you have doubts about the legitimacy of a charitable organization, check with groups like the Philanthropic Advisory Service (703-276-0100), the National Charities Information Bureau (212-929-6300), your state Attorney General, or your local consumer protection agency.

Booting the Bandit
Whether the fraudulent solicitation takes the form of a chain letter, a business opportunity, or another “guaranteed” path to easy money, it’s best to beware and prepare. Here’s how to boot a bandit out of your mailbox:

• Toss any solicitation that asks for payment for a “free” gift. If it’s free or a gift, you shouldn’t have to pay. Free is free.

• Toss any solicitation that doesn’t clearly identify the company and its street address and phone number. Pay particular attention if you are directed to call a toll-free number for more information about a product or service. Often, when you dial a toll-free number in response to a bogus solicitation, you are secretly connected through to a pay-per-call 900 number. In that case, you are paying to listen to a sales pitch for a product, service, prize, contest, or sweepstakes.

• Toss any solicitation that looks like a government document and suggests contest winnings or unclaimed assets are yours for a small fee. The government doesn’t solicit money from citizens.

• Toss any solicitation for a “prepaid” or “special” deal with a nominal monthly “processing fee.” You’ll save yourself years of monthly payments for products or services you no longer want or could pay less for elsewhere.

• Toss any solicitation that asks for your bank account or credit card account number.

• If you’re tempted to send any money for a product or service that’s being touted through the mail—and it’s a company you’ve never heard of—take your time. Check out the company—or the offer—with the Office of Consumer Protection or Better Business Bureau in your state and the state where the company or organization is located. This is not foolproof, though. There may be no record of complaints if a company is too new or if it has changed its name.

For More Information
If you think you’ve received a fraudulent solicitation or been scammed by a mailbox bandit, the FTC, the U.S. Postal Inspection Service, and your state Office of Consumer Protection (808-587-3222) may be able to help. While the FTC cannot resolve individual disputes, the information you provide may indicate a pattern of possible law violations requiring action by the Commission. You can file a complaint with the FTC by contacting the Consumer Response Center by phone: 202-FTC-HELP (382-4357); TDD: 202-326-2502, by mail: Consumer Response Center, Federal Trade Commission , Washington, DC 20580, or by email: use the complaint form .

You also can contact your local postmaster or call the Mail Fraud Complaint Center at 1-800-372-8347.

For more information about recognizing frauds, ask for a free copy of Best Sellers , a complete list of FTC publications. Write: Consumer Response Center, Federal Trade Commission , Washington, D.C. 20580, or call 202-FTC-HELP.

Familiar “walking fingers” logo and the name “Yellow Pages” could be a camouflaged invitation to lose money.

The Federal Trade Commission (FTC) and the Yellow Pages Publishers Association (YPPA) caution businesses that unscrupulous promoters are soliciting advertising in alternative or nonexistent business directories. Although these directories appear to be legitimate Yellow Pages publications, they are not distributed to the public and, as a result, offer no benefits to businesses that pay to advertise in them. In the worst cases, these so-called directories are not published at all.

The solicitation to buy ad space may look like an invoice and bear the “walking fingers” logo and the Yellow Pages name. Neither the name nor the logo is protected by federal copyright or trademark registration. That’s how fraudulent promoters can lead businesses to believe they are affiliated with local telephone directories distributed in a particular area.

The U.S. Postal Service requires solicitations that appear to be invoices, bills or account statements to carry the following notice: THIS IS NOT A BILL. THIS IS A SOLICITATION. YOU ARE UNDER NO OBLIGATION TO PAY THE AMOUNT STATED ABOVE UNLESS YOU ACCEPT THIS OFFER.

Of course, not all solicitations you receive in the mail look like bills, invoices or account statements. Be skeptical anyway. Some solicitations could violate the law if they misrepresent information.

Before you buy advertising space through a mail solicitation or pay an “invoice,” take the following steps:

• Check out the company and its publication. Call your local Yellow Pages publisher to see if it is affiliated with the soliciting company.
• Ask for a copy of a previous directory edition.
• Ask the publisher for written information about where the directory is distributed, the way it is distributed (does every local telephone customer receive it?), how often it is published, and distribution or circulation figures.
• Check with your local and state consumer protection agencies to determine if any complaints have been filed about the publisher. This isn’t a guarantee, but it is prudent.

If you think you’ve been scammed by a promoter pitching bogus Yellow Pages or business directories, contact your local Postmaster or Postal Inspector. Their numbers are available in the blue pages of your telephone directory. Or, write: Chief Postal Inspector, United States Postal Service, Washington, D.C. 20260-2100. You also can call the Mail Fraud Complaint Center at 1-800-372-8347. You can reach them online at www.usps.gov/feedback.

You also may contact the Consumer Response Center at the Federal Trade Commission , Washington, D.C. 20580; 202-FTC-HELP; TDD: 202-326-2502. To file a complaint with the FTC, use the online complaint form .

In addition, you may direct questions about Yellow Pages publishers to: Yellow Pages Publishers Association, 3773 Cherry Creek North Drive, Suite 920, Denver, Colorado 80209; 303-333-9772.

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