Twiceadayevenonsundays: Making Money Scams

If you're having a problem with a business, Consumer Ally can help. Write us at HelpMe@WalletPop.com.

Q. I was charged $1,200 by Debt Solutions of America with the promise that they would lower my house payment. Well they did -- It was $823 a month. Now it's $817. And I'm out $1,200. Is there anything I can to do to recoup my money?

Pamela StaheliA. Pamela, I really hate to hear about cases like yours. With all of the trouble in the housing market, companies like this are popping up more and more. They often call themselves foreclosure rescue or foreclosure relief services, and they promise big things: Lower your mortgage payments, cut them in half, save you thousands of dollars a year.

What they actually do is exactly what you could do on your own, or with the help of a good not-for-profit housing counselor: They help you gather and submit the paperwork needed to complete a loan modification as part of the Making Home Affordable program.

When we received your email, I did a search for the company so I could get in touch and see if we could recoup any of what you lost. What I found, unfortunately, is that this company is already out of business. I did manage to track down Chris Stover, the owner, and he was less than helpful. He said that in order to work with his company, you had to sign a contract that said, essentially, that there are no guarantees.

I know you've acknowledged that you did, in fact, sign this contract. Because the company is out of business -- Stover tells me it "just wasn't a profitable business to be in," although I'm sure you'd disagree -- going after a refund would probably be throwing good money after bad, according to Gerri Detweiler, a credit adviser for Credit.com.

Instead, she thinks you should file a complaint with your state attorney general's office and the Federal Trade Commission (you can do that here). I'd also file a complaint with the Better Business Bureau, which already has a file started on this company, with 10 complaints registered. You can add yours to the list here.

Now, if you're still struggling with your mortgage payments, and it sounds like you are, you should get in touch with a HUD-approved housing counselor. It's completely free, and they'll be able to outline what options are available to you at this point.

Finally, for others out there who are considering one of these services: It's not worth it. There are no quick fixes, and if someone asks you to pay for this kind of counseling service or help with a home modification or a delinquent mortgage, it's more than likely a scam. (As a side note, there are legitimate credit counseling services, which charge a small fee to help you pay down credit card and other debt. If that's what you're looking for, keep your search limited to members of the National Foundation for Credit Counseling.) Whenever you're considering paying for a service of any kind -- debt settlement, credit counseling, even a new cell phone or cable plan -- you should thoroughly research the company, including verifying its rating and accreditation with the BBB.

Consumer Ally problem-solver Jean Chatzky is the "Today Show" financial adviser, a longtime financial journalist and best-selling author.

Even as India basks in the respect showered on it as a player on the global stage by President Barack Obama, a wave of despondency is rising among almost all sections of the people at the rampant corruption corroding its politicians, bureaucrats and media.

Recent revelations indicate misappropriation of nearly $900 million in various scams orchestrated by senior politicians, ministers and top officials. The latest episode was the disappearance of some $200 million in the run up to the 2010 Commonwealth Games in October and new information about a $400 million misappropriation some years ago during allocation of cellular telephone licenses. A particularly painful recent revelation was the allocation of heavily subsidized apartments in a prime area of Mumbai to senior military figures, bureaucrats and politicians instead of the war widows and war wounded for whom they were meant as a grateful nation’s thanks.

A crucial leadership meeting today of India’s venerable Congress Party, which heads the current national coalition government, failed to make corruption a main driver of its political agenda. Congress leaders blamed high level figures in the opposition parties for some of the corruption cases highlighted by the media, thus making corruption a political issue instead of a national scandal cutting across Party lines.

Prime Minister Manmohan Singh, who is widely admired for his personal incorruptibility, and Congress President Sonia Gandhi fueled a sense of helplessness at the impunity of the corrupt when they denounced this malevolence but remained silent about allegations against top Congress politicians and leaders of coalition allies.

Corruption is thought to be embedded deeply at every level, high or low, of every institution of national democracy, including the judiciary, police, tax administration, top administrative officials and politicians. Indian laws disallow investigation or prosecution of politicians without parliament’s permission and of middle and senior bureaucrats without permission from the cabinet of ministers.

There is no institution beyond the control of government or bureaucracy with independent investigative powers and the authority to prosecute politicians or officials. Although draconian laws exist to prevent and punish the corrupt, they are rarely applied and have failed as deterrents.

Obama’s visit and thoughtful words seem to have opened Indian minds to the extraordinary potential of their country. For the first time the leader of the Western world is offering India a seat at the top economic and security tables as a partner. China sits at the top tables because it is feared and its intentions are suspect. India is being asked as a friend.

Suddenly, previous US rhetoric about India’s valued role in world affairs has changed into genuine belief in her ability to help create a more equitable, secure and people-friendly world order. This has jolted Indians out of resignation to being exploited by institutionalized corruption in all corridors of power.

In general, India is dynamic, creative and youthful compared to Western nations, China and Japan. There is energy and excitement about economic growth and making money. But Obama’s visit heightened realization that corruption is a greater enemy of better lives for Indians than poverty and other material shortages.

Disappointment is growing because of recognition that the people cannot trust any institution to impartially uncover and punish the corrupt. The discovery that some senior army generals were involved in Mumbai’s real estate scandal has caused consternation because the army was widely admired for being incorruptible.

A feeling of helplessness is rising because there seem to be no workable solutions, although politicians rail against corruption across Party lines. It turns out that everybody is naked because Sonia Gandhi and Manmohan Singh, both known for their probity, are reluctant to aggressively implement anti-corruption drives within their own Party while making shrill accusations against opposition figures. They fear to open a Pandora’s Box capable of bringing down the government by causing severe losses for the Congress and its allies in elections at the State and local levels.

Even the media is no longer trusted as an honest filter between the powerful and the people. This is mainly because major newspapers and TV channels do not clearly differentiate sponsored news and analysis from genuine reporting.

Transparency international ranks India at 87th place in its index of corrupt countries. There is little hope that things will change dramatically for the better soon.

bench craft company scam

Thursday, December 9, 2010

Making Money Scams

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