Regulated Industries Complaints Office

The senior population is often a target for scams or high pressure sales tactics, mainly because senior citizens are generally more trusting and worried about their financial futures.

You may be subjected to the tactics or requests listed below. Please be aware that these are only a sample of the types of situations you may run into.

High-pressure sales tactics and insistence on an immediate decision.

Scenario#1: A vacuum cleaner salesperson comes to your home and asks to demonstrate their vacuum on your carpet. They show you how the vacuum works and tells you all about its great features and how you won’t be able to live without one. They tell you that they can offer you a special deal on the vacuum only if you purchase on that day.

Scenario#2: You go to a car dealership and test drive a car. You think you may want to buy the car but want to shop around first. The salesperson tells you that if you do not sign the contract to buy the car tonight, they will not be able to offer you the same “great” deal.

Remember that the person you are talking to is trying to sell a product. Don’t be pressured into making a decision, especially if it involves an irrevocable financial commitment.

An offer that sounds too good to be true.

Scenario: You receive a flyer that says if you buy $500 worth of pens – which normally retail for $1,000 – You may qualify to win either a Cadillac worth $30,000, an around-the-world vacation, or a $2,000 diamond necklace. You send in the $500 and get $100 worth of pens and a $5 cubic zirconia diamond necklace as your prize.

Rule of thumb: If an offer sounds too good to be true, it probably is.

An offer to send someone to your home or office to pick up the money, or to use overnight mail or other means to get your funds quickly.

Scenario: You make and oral agreement for someone to build you a stone wall on your property. The person tells you that he will only accept cash. You tell him that you do not have that much cash on hand. He offers to drive you to the bank to withdraw the cash needed. You go with him to the bank and withdraw the money and give it to him. He never comes back to do the job and you never see him again.

A legitimate business will wait to receive you money. Be suspicious if the person insists on receiving your money right away and must have payment in cash.

Scenario#1: You receive a letter in the mail from the credit fraud section of a bank on the mainland stating that it is imperative they get your social security number, mother’s maiden name, and back account number.You send them the information and later find that a large sum of money has been withdrawn from your back account.

Scenario#2: You receive a phone call from someone saying that you won $5,000. He asks for your credit card number and expiration date to verify your identity. You give him your credit card number and later find that a large sum was charged to your account.

If anyone contacts you asking for your back account number, credit card number or social security number, do not give them this information.

The only time you should be giving out your credit card, bank account or social security number is if you initiated the call and you know the company with which you are dealing.

Scenario#1: Someone calls and says you’ve won $50,000, but you have to send $5,200 in order to collect the prize. He then tells you to send your check through Western Union. you send you check for $5,200, but you never receive you $50,000 prize.

Scenario#2: You receive a letter in the mail saying you’ve won $10,000. All you need to do is call a 900-number to get information on how to claim your prize. You later find that you have an enormous phone bill and never receive you money.

If you win a prize, you should not have to pay or incur any expense to receive it.

TIPS

• Be firm in your refusals.
• If you’re dealing with a person on the phone, it’s okay to hang up on them.
• If someone comes to your door, it’s okay to tell them you’re not interested in what they’re selling and close your door.
• Don’t be afraid to ask questions.
• Ask what recourse you’d have if you make a purchase and are not satisfied.
• Always request written information, by mail, about the product, service, company, investment or charity and about the organization offering the product or service.
• If you do not get answers to your question, hang up or refuse to deal with that company.
• Normally, scam artists are “smooth talkers” and will try to talk over you and not let you ask questions, or will not answer your questions. If you find this is happening to you, you may want to terminate the conversation.
• Inform the caller that you want to check their company and/or product and will call them back when you make you decision. If the caller refuses to give you a phone number or name, you may want to think twice about dealing with them.
• Beware if someone comes to your door to sell something, or if you receive unsolicited phone calls from people selling you something or telling you that you won a prize.
• When shopping for a big ticket item, know what you want and what you are getting before signing and agreement.
• Do not let anyone rush you. Making a hasty decision may cost you later.

Sources to Check with:

Regulated Industries Complaints Office (RICO)

• Complaint filing: 587-4272
• Maui: 984-2400, enter 5 digit extension (last 5 digits of number) and press # sign
• Kauai: 274-3141, enter 5 digit extension (last 5 digits of number) and press # sign
• Big Island: 974-4000, enter 5 digit extension (last 5 digits of number) and press # sign
• Molokai/Lanai: 1-800-468-4644
• Prior complaint history: 587-4272

Office of Consumer Protection (OCP)

• Complaint filing: 587-4272
• Maui: 984-2400, enter 5 digit extension (last 5 digits of number) and press # sign
• Kauai: 274-3141, enter 5 digit extension (last 5 digits of number) and press # sign
• Big Island: 974-4000, enter 5 digit extension (last 5 digits of number) and press # sign
• Molokai/Lanai: 1-800-468-4644
• Prior complaint history: 587-4272

Better Business Bureau (BBB)

• 536-6956

National Fraud Information Center

• (800) 876-7060
• They are located in Washington, D.C., so you must call in the morning, before 11:00 a.m. Hawaii time.

Action Line

• 591-4222
• Call between 11:00a.m. and 1:00p.m.

Securities Enforcement Unit (SEU)

• 586-2740

Executive Office on Aging

• 586-0100

Elder Law Project, University of Hawaii

• 956-6544

Chamber of Commerce

• 545-4300

Your family and friends.