National Consumer Protection Week: Debt Settlement Awareness

Debt can be a major source of stress and financial strain. In fact, the average Vermonter has nearly $10,000 in credit card debt, according to the Burlington Free Press. For National Consumer Protection Week, we’re sharing important information about debt settlement programs.

Helpful services

There are free services that can help you settle your debt. You can find some resources at

Additionally, you can work directly with your creditors to negotiate a debt settlement without using a third party. The CFPB has great step-by-step information about how to do this here. There are also nonprofit debt settlement services you use instead of using private, for-profit companies that can come with risks.  Local Community Action Agencies are a great resource for free advice too.  

Be careful in dealing with for-profit debt adjusters

If you choose to use a for-profit debt settlement option, it’s important that you use caution. These private, for-profit businesses may offer to settle your debts for less than what you owe by working directly with creditors.

The Federal Trade Commission provides the following cautions:

“You should be aware that “creditors have no obligation to agree to negotiate a settlement of the amount you owe.  There is a chance that your debt settlement company will not be able to settle some of your debts — even if you set aside the monthly amounts the program requires.

“Debt settlement companies also often try to negotiate smaller debts first, leaving interest and fees on large debts to grow.”

Because “debt settlement programs often ask — or encourage — you to stop sending payments directly to your creditors, they may have a negative impact on your credit report and other consequences.”

Avoiding scams

There are many debt settlement scams out there. Any company offering debt settlement or debt adjustment services in our state must be licensed with the Vermont Department of Financial Regulation.  You can check a license online by searching the business name on

Find out more

You can learn more about debt adjusters on our website:

If you have any questions about next steps, you can always contact the Consumer Assistance Program at 1-800-649-2424. 

You can take action to tackle your debt, but be cautious of organizations that may try to take advantage. You have the power to protect yourself and your finances. 

Content Editor: Crystal Baldwin

Travel Tips

If it’s time for you to escape on a getaway, keep in mind that scammers love to target those with travel plans. Vacations should be relaxing. Don’t let unexpected scams and travel pitfalls stress you out! There are countless ways one can be scammed while planning travel. With all the R & R you have scheduled, don’t get bogged down worrying about scams. This mindset is what scammers rely on to bilk you of your money.

Before travel:

  • Ask details about what is included in prices and look for hidden fees
  • If booking online, verify that you are using a credible website and double-check that you are on the correct site, rather than a copycat
  • Always do your own research before accepting the word of the person engaged in selling

While on your trip:

  • If you are notified about unauthorized credit card charges, contact your credit card issuer directly by calling the number on the back of your card. You might not be checking your statement history, but your credit card company generally understands your purchasing trends and may have fraud protection in place to alert you if they suspect an issue.
  • If you are renting a vehicle, know the ins and outs of your own auto insurance coverage. The rental agency will typically offer to sell you their insurance, so be prepared for this when you step up to the reservation desk. Protect yourself further from rental accident damage fraud by photographing the vehicle with on-site identifiers in the background (this is handy if you don’t have a date feature on your camera) both at the time of the initial rental and upon return. That way, if there is a damage dispute, you have photo proof of how the vehicle appeared while in your possession.
  • Free Wi-Fi and Wi-Fi that is not password protected could be problematic. Don’t sign into your accounts while using free or unsecure Wi-Fi. Why? You don’t know who is watching your online activity. Keying your password into an account may seem harmless, but scammers tracing your steps can log into your account later and access everything. Sure, it’s nice to have free Wi-Fi, but use it to check the news or browse tourist attractions, not to do your online banking.
  • While in a foreign country, you may be asked if you would like the total to be displayed in US dollars. If you say yes, the exchange rate may not be based on the actual currency rate, but based on the rate in the retailer’s system. The retailer receives any amount you pay over the actual exchange rate and you could be charged a conversion fee as well. Credit cards convert the foreign exchange rate based on the actual currency exchange rate, which is more accurate and doesn’t favor either party. Credit cards may also charge a conversion fee, so check the card’s terms before you travel.

While traveling, you don’t have to stress every minute about the possibilities of what might happen, but it will help to keep the above scenarios in mind so that you don’t find yourself in a stressful situation.

Contributing Writer & Photo Credit: Crystal Baldwin

Q + A with Co-Chief of the Community Justice Division, David Scherr

Attorney General T.J. Donovan has been spearheading criminal justice reform, most recently calling for reforms to the bail system so low-income Vermonters don’t get stuck in jail for low-level crimes. In 2016 he created the Community Justice Division to protect public safety, increase fairness, promote equal access to justice, and reduce incarceration. He was also a leading advocate for the passage of Act 61, which expanded pre-trial services and diversion. Act 61, among other provisions, created the Tamarack Program, a treatment-oriented diversion program aimed at adults with serious mental health and substance abuse issues. Since Act 61 took effect in July of 2017 the rate of referrals to diversion programs has more than doubled statewide, from 10% to 24%.

We caught up with Co-Chief of the Community Justice Division David Scherr to get more background on why criminal justice reform matters and how we’re making a difference here in Vermont.

David Scherr, Co-Chief of the Community Justice Division.

What is the reason for the creation of the Community Justice Division? Why is this issue so important to the Attorney General?

The Attorney General created the Community Justice Division to focus on the issues of criminal justice reform. The division seeks to increase public safety by promoting equal access to alternative justice programs and increasing fairness in the application of the law. The division does everything from administering the statewide Diversion and Pretrial Services Programs to creating new legislation that supports criminal justice reform efforts—including initiatives like bail reform.

These are key issues for the Attorney General. He made them a cornerstone of his platform during his candidacy, and he created this new division to enact real reform.

What work is going on nationally on criminal justice reform? How does Vermont fit into that?

There is an amazing amount of work being done nationally on criminal justice reform. States across the country, and the federal government, are making significant changes in how they approach crime, punishment, and rehabilitation. Nationwide people recognize that mass incarceration is an unjust and ineffective way of dealing with crime—particularly nonviolent crime. It is also systemically racist, incarcerating African American men at disproportionate rates.

The same problems exist in Vermont and need Vermont solutions. Vermont has the most disproportionate rate of incarcerating African American people in the nation. Our office is working hard to provide equal access to justice and strongly supports efforts to root out systemic racism in our criminal and juvenile justice systems.

What inspired you to work in criminal justice reform?

Before I arrived at the Attorney General’s Office I worked mostly as a public defender based in Burlington while working on cases all over the state. In my role as a public defender I saw firsthand the challenges, inequities, and unfairness of our criminal justice system. The people involved in the system are largely poor, with few resources—economic or social—to provide support.

Underlying causes of behavior, like addiction and mental health issues, are not adequately addressed in the standard criminal justice system.  By assisting people with the issues that lead to offenses and recidivism we are protecting public safety by making it less likely that people will reoffend.

Although I enjoyed helping people one at a time my view of our system made me want to have a system-wide impact by changing policies and laws. The Attorney General’s office has given me a place to do that, and I am grateful.

What are the Attorney General’s Office’s goals regarding criminal justice in Vermont over the next 5-10 years? How are we getting there?

Our long-term goals are to increase public safety by having robust alternative justice systems—working in close cooperation with our public health system—to adequately address underlying causes of criminal justice involvement, and to reduce the incarcerated population to the people who really need to be there. The work we are doing presently around our Diversion and Pretrial Services programs, along with legislative and policy efforts like bail reform, will move us in the right direction.

Thanks to David Scherr for sharing his expertise today! You can follow up with any questions you might have at

Match or Mooch? Preventing Romance Scams

Too often, Vermonters reveal to us that a scammer lied to them about being in a long-distance relationship. These scams can be heartbreaking. They are not uncovered until the love interest asks for money—or once money gets sent. Sent money can’t be retrieved, making the betrayal more painful.

Vermonters lose tens of thousands of dollars each year to romance scams. This scam continues to affect more people than other wire transfer scams. So, what’s going on?

Most romance scams initiate through dating websites and apps, like Match, Zoosk, Senior People Meet, OK Cupid, and Meet Me. Connecting online and through apps makes it easy for scammers to hide their identity. You could be chatting daily with a person who describes themself as “tall, dark, and good-looking”—but is not. Scammers succeed because online dating gives the option of communicating without ever meeting in person, or talking on the phone.

Not all online dating is bad. In fact, Consumer Reports found in a survey that 44% of respondents said online dating led to a serious long-term relationship or marriage. With such high odds in finding “the one,” how can you continue to use online dating and stay safe when looking for love?

We’ve created a table to help you determine if you’re being contacted by a MATCH or a MOOCH.

In 2016, a law was passed that requires internet dating services to notify Vermont members of noticeable changes in their account, such as when their account is hacked and being used maliciously by a romance scammer. Internet dating services must also alert Vermont members who had previously corresponded with a newly banned member, letting them know they may have been contacted by a romance scammer. So this Valentine’s Day, protect yourself from romance scams and find a match, not a mooch.

Contributing Writer: Crystal Baldwin

Net Neutrality Fake Comments: Find out if You’re Affected

What would you think if you saw your name and home address on a public comment addressed to a government agency – but… you never actually wrote a comment?

That is what has happened on the Federal Communications Commission (FCC)’s website in the online public comment space on net neutrality. Attorney General T.J. Donovan has determined that perhaps hundreds or even thousands of Vermonters may be affected by “fake comments” submitted to the FCC on this vital issue. One such Vermonter, Montpelier resident Irene Racz, was shocked to see a comment submitted to the FCC in her name opposing net neutrality – a position contrary to her actual views.

Now, the Attorney General is raising awareness about fake comments on the FCC’s proposed net neutrality rule change. His efforts follow an investigation by New York Attorney General Eric Schneiderman, who first alerted the public about tens of thousands of possible fake comments using stolen identities on the site.

Since the public comment period opened last April, Americans have submitted millions of comments—the vast majority in favor of preserving net neutrality. However, the process appears corrupted by an onslaught of fake comments. For example, news reports suggest that almost half a million fake comments have been linked with Russian email addresses.

Attorney General Donovan is calling on Vermonters to see if their names were stolen for false comments – and to report it to our office using a simple web tool if you are affected. Please check the Consumer Assistance Program’s portal to search the FCC database and the reporting tool at:

Any Vermonters who do find fake comments issued under their names should report it to our office and contact the FCC directly to request that phony comments be withdrawn. Additionally, Vermonters who have not submitted comments and wish to do so should enter them before the planned FCC net neutrality vote on December 14.

Attorney General Donovan and 12 other Attorneys General submitted comments to the FCC in July in favor of preserving net neutrality rules for a fair, free and open Internet. The current rules protect consumers by ensuring choice, transparency, and fairness. For example, it bars service providers from establishing “fast lanes” and “slow lanes” for consumers depending on partnerships or premiums.

Your voice is essential to this process.