Your weekly ScamWatch
Here’s a weekly roundup of alleged cons, frauds and schemes to watch out for.
Bogus Bowflex — A Southern California woman brought counterfeiting to a new arena, importing bogus exercise equipment from China to the United States, according to prosecutors from the U.S. attorney’s office. A federal jury in Los Angeles convicted Chunchai Yu of Chino of trafficking counterfeit Bowflex, Beachbody and Malibu Pilates exercise equipment. The charges on which Yu was convicted carry a maximum penalty of 90 years in prison and more than $12 million in fines. She is scheduled to be sentenced Sept. 27.
Calling card caution — Hidden costs can degrade the value of prepaid telephone cards, the Federal Communications Commission and Federal Trade Commission said. Consumers who buy the cards should read the contract carefully, looking out for such things as disconnect fees and maintenance fees, the FTC said. They should also check for expiration dates and, if possible, choose a card that comes with a toll-free customer service number.
No debt relief, no fee — Starting in October, for-profit companies that help consumers reduce credit-card debt won’t be able to charge fees until they’ve successfully renegotiated the debt, the FTC said. The advance-fee ban was aimed to prevent these companies from collecting fees and then failing to perform services for consumers, said FTC Chairman Jon Leibowitz. “Too many of these companies pick the last dollar out of consumers’ pockets and, far from leaving them better off, push them further into debt — even bankruptcy,” he said. In order to charge a fee, the companies will need to reduce or renegotiate at least one debt, the FTC said.
Foreclosure rescue fraud — A Florida company that made false promises that it could help homeowners avoid foreclosure has agreed to pay $2.4 million to settle a lawsuit brought by the FTC. Home Assure LLC typically charged consumers an upfront fee ranging from $1,500 to $2,500 but did little or nothing to help them avoid foreclosure, the lawsuit alleged. Under the settlement, the company agreed to refrain from making false promises.
