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CONSUMER FRAUD AND ABUSE PROTECTION FOR SENIORS

Consumer Protection

People of all ages constantly purchase goods and services --- houses, cars, clothing, personal services, medical care, food, and so on.  Being a knowledgeable consumer has a positive impact on one=s economic well-being.  While most companies and businesses are legitimate, some are unscrupulous.  It=s estimated that telemarketing fraud costs Americans $40 billion a year and Georgians about $500 million a year.  In addition to telemarketing fraud, there are scams and swindles connected to home repairs, contests and sweepstakes, charity drives, investment offers, insurance, and health care.  Many of these scams are targeted to older adults.   In Georgia the Secretary of State=s office, the Governor=s Office of Consumer Affairs, and the Attorney General are coordinating resources to provide protection for Georgia consumers to stamp out telemarketing and other types of consumer fraud.

HOW TO BE A SMARTER CONSUMER

• Avoid "too good to be true" offers.
• Compare prices and quality of goods or services before buying.
• Get a written estimate of repair costs.
• Never pay money in order to collect a "prize" you have won.
• Check the reputation of a company before doing business with it.
• Do not be pressured into signing or buying anything.
• Read and understand a contract before you sign it.
• Never sign a blank or incomplete contract.
• Never accept verbal guarantees or warranties in place of written ones.
• Use caution when giving out credit card numbers, bank account numbers, Social Security Numbers, Medicare numbers, or any other personal financial information.
• Find out about your rights under the law.

Older adults are often the target of unscrupulous businesses and con artists.  Be aware of the following practices in which some companies and individuals engage:

Bait and Switch:  A "bait and switch" occurs when a consumer responds to an advertisement or sales pitch, attempts to make a purchase, and the salesperson disparages or puts down the merchandise in an effort to get the consumer to purchase a different, often more costly, item.  A "bait and switch" can also occur when an advertised item is actually not available or if a salesperson refuses to sell the customer the requested product.

Pigeon Drop:  There are several variations of pigeon drops, but this scam usually involves an individual who has "found" a substantial amount of cash and is willing to cut the unwitting victim "in on the deal" if the victim gives the "finder" an amount of cash as a show of good faith.  The "finder" then disappears with the victim's money.

Other schemes to be aware of include: coupon booklets, vacation schemes, extra income schemes and home repair schemes.

For More Information

To learn more about your rights as a consumer, contact the Better Business Bureau in your area (consult your local telephone directory) or call the Council of Better Business Bureaus at 1-703-276-0100, contact an attorney, or contact:

The Georgia Governor's Office of Consumer Affairs
2 Martin Luther King, Jr. Drive
Suite 356
Atlanta, Georgia 30334
FAX: (404) 651-9018
 
WHAT TO DO IF YOU HAVE A CONSUMER COMPLAINT

The first step in any complaint process is to discuss the problem with the business.  Try to speak with a manager or the owner about the problem and follow up by sending a certified letter confirming all details of the conversation.  Keep records of all conversations you have with the business and any copies of any letters you may send to or receive from the business.

If direct contact with the business does not solve the problem, the Office of Consumer Affairs may be able to help you.  You must file your complaint in writing before the Office can review the problem and assist you.

The complaint should include:

1. A brief description of the problem.
2. Your full name, address, home and work telephone numbers.
3. The full name, address, and telephone number of the business.
4. Copies (do not send originals) of any related materials to verify the complaint, such as receipts, canceled checks, warranties, contracts, or advertisements.

Mail your complaint to:

The Georgia Governor's Office of Consumer Affairs
2 Martin Luther King, Jr. Drive
Suite 356
Atlanta, Georgia 30334
FAX (404) 651-9018

In addition to assisting Georgians resolve their differences with business, the Office of Consumer Affairs has criminal authority in consumer fraud issues involving telemarketing and home repair scams.  If you have been victimized, mail your information to the above address or call (404) 657-7544 or 1-800-805-7544.  You may also visit the web page: www.state.ga.us/gaoca

OTHER RESOURCES FOR CONSUMER PROTECTION

Securities, Commodities and Investments: Each year Georgians lose millions of dollars to securities, commodities and other types of investment fraud.  Investigate before you invest.  Georgia's Secretary of State regulates the areas of securities, commodities, and investment advisors.   Contact the Secretary of State's office at (404) 656-2894 to verify registration of securities Brokers/dealers and to verify the registration of investment advisors and financial planners.

Charitable Solicitations: Charitable organizations that are not religious in nature, and people paid to solicit charitable contributions, are required to maintain registration with  Georgia's Secretary of State.  Feel free to call the Secretary of State's office at (404) 656-4910 or access the webpage at www.sos.state.ga.us to verify that the charitable organization or paid solicitor is registered to operate in Georgia.

Cemetery Information: The Georgia Cemetery Act of 1983, as amended, requires all perpetual care cemeteries to be registered with the Secretary of State=s office.  Call the Secretary of State's office at (404) 656-3079 for more information.

Georgia Secretary of State
Division of Securities & Business Regulation
2 Martin Luther King, Jr., Drive, S. E.
802 West Tower
Atlanta, Georgia 30334
(404) 656-3920
www.sos.state.ga.us      

To Screen Unfamiliar Companies for Reports of Fraudulent Activity: Contact your local Better Business Bureau (consult your local telephone directory or call the Council of Better Business Bureaus at 1-703-276-0100) or contact the National Fraud Information Center (NFIC) at 1-800-876-7060 which operates from 9 A.M. until 5:30 P.M. EST, Monday through Friday.

Contractors for Conditioned Air, Plumbing, Low-voltage or Underground Utility Work: All contractors for conditioned air, electrical, plumbing, low-voltage or underground utility work must be licensed by the State Construction Industry Licensing Board.  The State Construction Industry Licensing Board, 166 Pryor Street, S. W., Atlanta, Georgia, 30303, (404) 656-3939 accepts complaints regarding solicitations for conditioned air, electrical, plumbing, low-voltage or underground utility work by contractors who do not have a state license.

Home Repair Contractors:  When contracting for home repair, you should verify the contractor's name, address and telephone number.  Do not deal with a person who does not list a street address.  Get proof from the insurance company that the contractor has liability and workers compensation insurance.  Request references on similar work performed by the contractor and check them.  Obtain two or three detailed, written proposals about the work, based on specific plans.  Do not pay for anything in advance.  Avoid those who come to you without invitation.  Check to see if the person or company is a member of a local, regional or national industry association.

Avoid Construction Fraud

Don't allow anyone to push you into doing anything you aren't sure about. Do your homework and beware of those
who approach you uninvited.

Your county building department is a source of information to determine if you need a building permit, if the work conforms to building codes, or if there are any zoning restrictions on the project.  Check your neighborhood covenants before building, renovating or remodeling.

Contact the local Better Business Bureau, Chamber of Commerce, City and/or County Inspection Departments to determine if the contractor has a business license and to ask if there have been complaints against the contractor.

Insurance of All Types:  The Georgia Office of the Commissioner of Insurance and Fire Safety regulates the insurance industry in Georgia and provides consumer protection for the insurance buying public.  This department has a Fraud Division and an Arson Investigation Division.  For more information, contact:

Georgia Office of the Commission of Insurance and Fire Safety
Two Martin Luther King, Jr. Drive
Atlanta, Georgia 30334
Main Telephone  404?656?2070
FAX  404?657?8542

You may also contact the Consumer Services Division at 1-800-656-2298.  In addition this department has special telephone numbers for arson fraud and insurance fraud:

Arson Fraud Investigation Tip Line 1- 800?282?5804

Insurance Fraud Investigation Tip Line 1- 800?726?6070

Health Care Fraud

A number of programs operate to combat provider fraud and abuse in the Medicare and Medicaid programs.  The U. S. General Accounting Office (GAO) estimates that $1 out of every $10 spent for Medicare and Medicaid is lost to fraud.  Operation Red Flag is a project operated by the DHR Division of Aging Services to educate older Georgians, families, care givers, advocates, professionals and others to recognize health care fraud, waste, and abuse and notify enforcement authorities.  For more information about "Operation Red Flag" or recognizing and reporting potential Medicare and Medicaid fraud in Georgia, contact:

DHR Division of Aging Services
Two Peachtree Street, N. W., 9th Floor
Atlanta, Georgia, 30303
(404) 657-5319 or
GeorgiaCares Hotline 1-800-669-8387

To report suspected Medicare fraud, call 1-800- 447-8477, the U.S. Department of Health & Human Services fraud hotline.

Report suspected provider Medicaid fraud to the Department of Medical Assistance at 1-800-533-0686.

The Georgia Department of Law, the Georgia Bureau of Investigation (GBI), and the Georgia Department of Audits and Accounts established the State Health Care Fraud Control Unit to investigate and prosecute provider Medicaid fraud and to protect vulnerable patients in Medicaid-funded facilities from abuse.   They may be contacted at:

State Health Care Fraud Control Unit
2100 East Exchange Place
Building One, Suite 200
Tucker, Georgia 30084-0449
(770) 414-3640 for Investigations
(770) 414-2718 for the Legal Division
1- 800 - 508-9109

From Access: Benefits and Resources for Older Georgians
Last Revised: April 2008