Financial stability looks different for everyone. When we have a life event that creates instability, knowing your rights about debt collection (outlined in the Fair Debt Collection Practices Act (FDCPA)) can help you manage contact from a debt collector. There are community resources and companies that may be able to help you develop a debt recovery plan. However, be cautious and do your research before you set up a debt management plan.
Know your rights! When managing debt, you may receive calls from a collection agency hired by the creditor.
Know what debt collectors cannot do:
Contact you before 8am or after 9pm
Contact you at work if you ask them not to
Discuss your debt with others
Threaten you or use obscene language
Misrepresent the amount owed
Try and collect interest, fees, or other charges on top of the amount you owe
Be careful in dealing with companies offering debt management services, also called debt adjustment or debt consolidation.
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 you owe by working directly with creditors.
There might be a negative impact on your credit report and credit score. Debt settlement programs often ask — or encourage — you to stop sending payments directly to your creditors. That means late fees and penalties may grow, put you further in the debt, and hurt your credit.
Creditors might start debt collection. While you’re in the debt settlement program you may still get calls from debt collectors requesting repayment.
You might not be able to settle all your debts. Your creditors have no obligation to agree to negotiate a settlement of the amount you owe. Debt settlement companies also often try to negotiate smaller debts first, leaving interest and fees on large debts to grow.
You might not finish the whole program. Many people have trouble making payments long enough to get all — or even some — of their debts settled.
There could be tax consequences. Any savings you get from debt relief services could be considered income and taxable. Talk to a tax professional to learn how this might affect your situation.
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 for the business name on nmlsconsumeraccess.org.
Helpful services You can work directly with your creditors to negotiate a debt settlement without using a third party. There are also nonprofit debt settlement services you can 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. You can find additional resources at VTLawHelp.org.
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.
If you have any questions about next steps, you can always contact the Consumer Assistance Program at 1-800-649-2424.
As Vermonters, we are no strangers to cold temperatures and snow-filled winters. Winter can be long and cold, with temperatures ranging from single digits to below zero. This is why home heating is essential, especially during the colder months of the year. Currently, we are in the middle of heating season, which occurs every year from November 1st to April 15th. Heating season is one of the busiest times of year for heating fuel providers.
Whether it be the snow causing delays on the road or preventing trucks from safely accessing your tank to tight schedules for deliveries, here are some tips that could potentially avoid delays in your delivery of heating fuel:
Making a Plowing Plan
Be aware of upcoming weather events that may affect your expected delivery. If you are expecting a delivery during a snowstorm or after snowfall, make sure your driveway is adequately plowed and sanded so the truck can safely drive up to your tank. Live on a private drive? Call your provider to make a plan to ensure the delivery can occur as scheduled.
Calling Ahead
Keep an eye on your tank gauge during the colder months, regardless of your delivery status. For example, if you are on will call, it is generally recommended to call your provider while your tank is between 40-30% full. However, each provider may have their own requirement, so check with your provider to see when a delivery should be scheduled.
Having a tank at 10% can make you vulnerable to running out of heating fuel, especially during heating season when your providers’ delivery schedule can quickly fill up. Waiting to schedule a delivery may result in an emergency delivery fee or special trip charge to avoid a no heat situation.
Shopping Around
If you own your tank and do not have a contract with a specific provider, you may be able to call other providers. For example, No. 2 fuel gives you the ability to contact other providers in your area if your usual provider cannot schedule you. On the other hand, propane can be different. If you are looking to switch providers, this may require a tank swap. Vermont has specific protections for propane customers when requesting termination of service from your provider. Call CAP for more information.
Still having trouble with a delivery? Call CAP at (800) 649-2424 or email us at AGO.CAP@vermont.gov.
If you or someone you know is having trouble affording heat this winter, there are programs in Vermont that may be able to help. Please see our past Staying Warm This Winter post for additional information.
The Vermont Attorney General’s Office enforces a Consumer Protection Rule (CP 111) specific to the regulation of propane. Propane consumers are entitled to, among other rights: the disclosure of fees before service begins, notice of changes to fees or new fees, notice prior to a change in credit status, and certain protections for disconnections.
Have questions about the Consumer Protection Rule (CP) 111? Call CAP at (800) 649-2424.
CAP provides a letter mediation service for consumer issues facing Vermont residents. If you have experienced an issue with your home heating provider, contact the Consumer Assistance Program.
Auto complaints are a top complaint received by the Consumer Assistance Program every year. Cars are both an important transportation resource and, sometimes, an extension of personal identity. Outside your home, a car purchase may be one of the most expensive purchases a person may make. Consumers may be eager to buy a new car after long periods of saving. Usually buying a handful of cars in their lifetime, consumers are at a disadvantage to dealers, who sell cars every day. There is an emotional component to buying a car that consumers should also be aware of – this is true of brand-new cars, or “new to you” used vehicles that may have had previous owners.
Online Research: Using the Internet as your tool, research different makes and models that have the features you are looking for. Once you have a new car in mind, look up the Manufacturer Suggested Retail Price (MSRP), which is the manufacturer’s recommendation on vehicle pricing. You can usually find this information on the manufacturer’s website. Also check pricing through online forums, such as Reddit, where many consumers post about their experiences with different cars. Don’t take everything you read from other consumers as fact. Gather information that will help you make an informed decision.
Test Drive: Once you have a clear idea of the car you want, it is time to go to the dealership. Make clear to the salesperson what you want to try without expressing your interest in buying. If you share how much you like the car, or are excited, salespeople may seek to capitalize on this knowledge when negotiating. Try to stay calm and neutral to help get the best deal.
Trust your own research over verbal representations. After selecting a car, you will move on to the paperwork, a process which can feel cumbersome for consumers. People tend to relax after selecting the car they want, which is a huge choice. Stay alert throughout the signing.
Most people do not buy cars frequently, but a salesperson sells cars every day. Because of this, they are better at selling than you are at buying. One very common strategy used in car sales is to stretch out the car deal. This can be exhausting for the consumer, making it harder to make thoughtful decisions.
You may be asked to provide an electronic signature on a tablet or computer. This can be problematic as you may not see or comprehend the document. It is easy to miss key facts when reading on the digital screen. You can ask the salesperson to print out any contract you are expected to sign and read the contract carefully. You have the right to get printed documentsbefore you sign, as well as to choose to sign in writing.
If financing with the dealer, be careful to avoid “yo-yo deals,” where the dealer reserves the right to cancel the agreement and re-finance at a higher interest rate and payment. Sub-prime auto loans often have high interest rates and prepayment penalties for paying off the loan early. Getting pre-approved by your bank—or even having your bank pay with the auto as collateral with a bank auto loan, is also an option.
For used cars: ask for a Car Fax report or other documentation showing its driving history; check the odometer disclosure statement. A new Vermont law also requires used car dealers to provide an inspection disclosure (meaning: the dealer is required to tell you when the vehicle was last inspected, how long until inspection is due, and that you have a right to have it inspected before you purchase). This is an important new consumer protection because instead of paying for a used car, only to find out three months later that it may be deemed “un-inspectable” (or require more money for repairs before it passes inspection) ensures that you have full information and know your rights before making a purchase.
This piece is adapted from an earlier edition, “Buying a New Car” brought to you by one of the Consumer Assistance Program’s (CAP) service-learning interns. UVM undergraduate students make significant contributions to our program and Vermont through their participation in our service-learning lab, where they learn about consumer protection while honing their professional skills.
Next time you’re sitting by the fire, enjoying your favorite seasonal beverage, why not take a moment to start thinking ahead about that roof repair, bathroom renovation, or other home improvement project that you’ve been delaying?
It might seem counterintuitive or maybe it’s just not on your mind while there is two feet of snow in your driveway. A few key considerations might make you think twice about further delaying a call to a contractor and getting on their schedule.
In Vermont, contractors and other home improvement specialists are in high demand during the prime building season (summer/fall) and can book several months in advance. So, call now and get on their schedule early.
Gabriel Taylor-Marsh, our Home Improvement Specialist, encourages you to “Be preemptive, proactive and forward thinking about your next Home Improvement Project.” He welcomes folks to contact him directly at the Consumer Assistance Program to learn about best practices in hiring your next contractor. He says, “Making the right investment into your home will save you time, money and resources down the line.”
Thinking ahead to your spring/summer home repair project will help to ensure that you will have enough time to check off every step of the Home Repair How-To Checklist on the Attorney General’s website (https://ago.vermont.gov/home-improvements), including checking contractor registration and obtaining quotes from three contractors.
Planning ahead in the winter months will help to set you up for the smoothest possible project. You may not be able to predict every bump in the road. However, if you do your due diligence as a consumer and start shopping around early, you could set yourself up for less delays, and a smoother experience overall.
For more home improvement tips and information, including energy project considerations, visit the AGO’s website home improvement page. If you have further questions, call our Consumer Assistance Program to speak with our Home Improvement Specialist.
A National Consumer Protection Week feature. “National Consumer Protection Week (NCPW) is a time to help people understand their consumer rights and avoid frauds and scams” (FTC).
Government Impersonation scams were the top fraud reported between 2014-2021, with a total reported loss of $442.21 million according to the Federal Trade Commission (FTC). In 2020, with the popularity of the Social Security Imposter scams increasing steadily to date, the Social Security Administration Office of the Inspector General dedicated a day during National Consumer Protection Week as National SLAM the SCAM Day, to remind individuals of how to spot these pesky scam calls. The goal of Slam the Scam is to raise awareness during Consumer Protection Week on prevalent government imposter scams and invite consumers to slam down the phone on these scammers! In honor of SLAM the SCAM Day, the Consumer Assistance Program (CAP) is reminding you to SLAM the SCAM and hang up on government imposters.
Receiving a call from someone claiming to be from the government can be alarming. These calls can be threatening in nature, claiming your personal information or identification was involved in a crime, or money is owed to a federal agency. On the other hand, sometimes these calls are more positive which offer fake opportunities for government grants, entitlements, or benefits. In 2021, the FTC reporteda[TM1] total of 396,302 scam reports relating to government imposters. In Vermont, government and legal authority imposter scams clocked in at the fourth most reported scam last year. This accounts for 9% of the 5,154 scams reported to the Consumer Assistance Program (CAP) in 2021, compared to 41% of the top scams reported to CAP in 2018. While the FTC numbers can be startling, there has been an average 7.3% yearly decrease of reported loss to government imposters, meaning consumers did not provide funds. To continue the declining trend of loss to scams, we need your help. To help reduce these fraudulent attempts, CAP will break down popular government imposter scams to help 1) identify the scam, 2) review what to know about the scam, and 3) provide some tips on how to navigate government impersonation scams.
Hang Up on Government Imposters!
Social Security Number Phishing
Identify It: You may get a call, text, email, or even a direct message on a social media platform from someone claiming to be from the Social Security Administration or Magistrate’s Office. The scammer may claim your Social Security benefits are ending or will be suspended unless funds or personal information about yourself is provided. Sometimes there are even threats of arrest or legal action to be taken against you. They will ask you to pay with gift cards, wire transfers, peer-to-peer payment methods (EX: Zelle, Venmo, PayPal, CashApp, etc.), or mailing cash. We have also seen an increase in requesting cryptocurrency, as these transactions are untraceable.
What to Know: The Social Security Administration would never call you threatening to cut off benefits or suspend your Social Security number. Instead, these are scammers looking to steal your money and identity by gathering your personal information. The Social Security Administration would never contact you via text message, email, or through social media. The only time Social Security will contact you by phone is if you request a call from them. Otherwise, most if not all correspondence occurs through mail. A legitimate government agency would never request money be sent by wire transfer, gift cards, pay with cryptocurrency, or mailing cash. Ignore these fraudulent attempts, and if the call is a robocall, do not press any buttons. If you need to speak with the Social Security Administration, call your local office using the Social Security Office Locator. You may also report the scam directly to the Social Security Administration Office of the Inspector General.
Medicare/Medicaid Imposter
Identify It: Scammers will call, often from a spoofed caller ID number, and pose as Medicare or Medicaid representatives to gain your personal information and money. CAP finds these scams are most frequent during times of open enrollment. The scammers will state they need your Medicare/Medicaid card number or Social Security number to keep your coverage active and verify medical information. The calls may also claim that coverage is expiring or in need of renewal. Scammers will also ask if you received a “new Medicare card”, often referred to as a “gold card” or “red, white, and blue card”. They may claim to be offering sought-after medical supplies or test kits in exchange for your ID.
What to Know: Never provide your Medicare number or other personal information and payment to unknown callers. In general, Medicare cards do not expire. Medicaid, on the other hand, provides coverage for a year with the option to renew yearly. This is done through Vermont Health Connect or Department of Vermont Health Access through the Agency of Human Services. Unless you have called Medicare using the 800 number on the back of your card and requested a callback, Medicare will not call you. If a phone call is required, you would receive a letter from Medicare to schedule a call. Medicare representatives will never call you to verify your information, sell you products, tell you that your coverage is expiring, or to issue you a new card. In Vermont, representatives of the State Health Insurance Assistance Program (SHIP) at 1-800-642-5119 through local Area Agencies on Aging can help address Medicare questions. Other questions and concerns about Medicare coverage can be directed to Medicare at 1-800-MEDICARE.
IRS Impersonator
Identify It: The scammers will call claiming that they are from the IRS and that you owe them for back taxes. Sometimes the call will begin with a robocall asking you to press a number or to confirm your personal information. They will ask you to pay immediately, and the caller might threaten you to say that the local police will arrest you, legal action will be taken, or your tax documentation will be suspended if you don’t pay. They could even provide some legitimate information like your Social Security number to make you believe that they are related to the IRS, but they are using this call to gain money and more information from you. The scammer usually requests the payment in a specific way, such as wire transfers, access to bank accounts, gift cards, mailed cash, or cryptocurrency.
What to Know: If the IRS contacts you, it would be by mail, not by phone unless you requested a callback. They may call you only after sending you two letters by mail. The IRS will never ask you to pay debts by phone, nor demand a particular payment method. Lastly, legitimate IRS employees will never threaten you. If you didn’t receive written notification about a tax issue and receive a call claiming to be from the IRS, don’t engage. Do not press any numbers, give personal information, or provide funds. This could lead to more scam calls. In this situation, the better thing to do is hang up the phone.
Identify it: The scammer will pose as a police officer, an attorney, or any person with legal authority. They will mention pending lawsuits or government debts involving you and will threaten arrest or legal action. The solution provided by the scammer is to send money, and your problem will disappear. But they will call again, saying that something went wrong, often requesting more money. Variations of this scam can involve immigration issues and the scammer using your legal status in the U.S. to threaten you with deportation and visa revocation.
What to Know: Law enforcement agents, like police officers, sheriffs, or other government employees, will not warn you ahead of time about pending warrants. If you were going to be sued, the papers would be served without notice. The government will never call and threaten you. The best thing to do is hang up the phone and call the legitimate agency’s phone number to check about possible lawsuits, immigration status, and debts. If you are concerned about your immigration application, petition, or status, contact the United States Citizenship and Immigration Services directly.
More Government Impersonation Scams
United States Postal Service (USPS)
Identify It: You may receive a call, email, or most commonly a text from a number you do not recognize, with a “tracking link” for a package or a notice a package was unable to be delivered by USPS. Scammers may also claim to be from U.S. Customs and Border Protection (CBP) regarding a package containing illicit items. In the communication, there may be a number to call or a link to view the tracking information. Once connected with the scammers, you are prompted to pay a fine to avoid arrest or legal action. You may also be prompted to provide additional personal information about yourself to ensure the package can be delivered. In terms of employment opportunities at USPS, please be aware of where the job is being posted and what the scammers are asking for. Offers are created to be enticing by alleging outlandish benefits, guaranteed jobs, or claim they will hire you on the spot.
What to Know: If you are not opted in for text communications from USPS or receive a text from a number not associated with USPS, this is a scam. Additionally, if you were not planning on receiving a package, chances are it is not legitimate. If you receive a package that you did not order, mark it “return to sender” and bring the package to your local mail carrier. If you are questioning if the claimed delivery is real, call your local USPS office to confirm if a package exists. If you are given a tracking number, you can check the legitimacy by using USPS’s Tracking page. U.S. Customs and Boarder Protection posted a press release a few months ago, warning consumers about this scam as well.
Government Funds (grants and unclaimed funds)
Identify It: These types of imposter scams focus on a variation of “free money” scams while pretending to be calling from a government agency. CAP receives the occasional notice about a scam call that claims to be from the State Treasurer, claiming there is “Unclaimed Property” for the individual to claim. Unclaimed Property is any lost or abandoned money that someone has not claimed, usually from past business dealings such as refunds and rebates, an overpayment on an account, or funds that were unclaimed in a financial account that was closed. In order to release those funds, the scammer will ask a fee to be paid, generally claiming the money is for tax purposes or interest on the funds. CAP has also received reports regarding the “Community Development Block Grant” or other government grants, where individuals have received texts and social media messages from fake profiles pretending to be a government employee. You are prompted to provide personal information and told you must pay a fee to receive your grant money.
What to Know: You would never have to pay money to claim your “Unclaimed Property” through the Office of the State Treasurer. You do not have to pay a fee to claim your Unclaimed Property. You may file for your Unclaimed Property online or by mail with the Office of the State Treasurer. To find out more about unclaimed property, go to USA.gov. The government does not contact you about available grants, you contact them. Legitimate grants require an application and are to be used for specific purposes. In addition, if you did apply for a grant, you do not need to pay money to receive the grant. You may find available federal grants at grants.gov.
How to Navigate Government Impersonation Scams:
If you suspect that you are being targeted by a scam, the best thing you can do is not respond. If you receive a scam call, SLAM the SCAM by hanging up! Do not call back the number. If you get an email, text message, or social media direct message, do not engage and mark the correspondence as “Junk/Spam” or delete the message. NEVER give out any personal information, money, or allow access to your devices to someone claiming to be from the government. If you are worried the claims may be true, contact the department directly using a trusted number. If you cannot find one, call CAP to inquire about legitimate contact information. Report scam encounters to CAP. Please see below for information on how to report scams to our office.
Do not trust caller ID. Instead, vet your calls by listening to your voicemail messages. Scammers are known to “spoof” legitimate phone numbers and names of government agencies, using fake identification of government and law enforcement agencies. These scammers can use aggressive tones or create a sense of urgency to provide the information or funds they are requesting. Often, the scammers will say not to tell anyone you spoke with them and to keep your conversation a secret. Do not isolate. Tell a trusted friend, family member, or member of your community to help you navigate this situation. CAP cares and is here to talk with you about the scam call you received.
To report scams, please visit our scam reporting form: https://ago.vermont.gov/cap/stopping-scams/. If you have difficulty accessing the form, call our office at 800-649-2424 to report the scam over the phone.
Learn more about imposter scams on our imposter scam prevention video and resource page: ago.vermont.gov/imposter-scam
