FTC & DEPT OF VETERAN AFFAIRS CRACKS DOWN ON FAKE VETERAN CHARITIES

FTC & DEPT OF VETERAN AFFAIRS CRACKS DOWN ON FAKE VETERAN CHARITIES:

FAKE VETERAN ORGANIZATIONS RECEIVE MILLIONS ANNUALLY FROM THE VA BUT DON’T HELP VETS.

FAKE VETERAN ORGANIZATIONS ARE GRANTED NON-PROFIT IRS STATUS BUT DON’T HELP VETS.

IT’S TIME FOR CONGRESS TO ORDER ANNUAL AUDITS OF ALL AGENCIES & CHARITIES CLAIMING TO HELP VETS.


Post Sources: Military Times, Forbes, USA Today, Non-Profit Quarterly, WTVA, Youtube


******Here’s how state and federal authorities are targeting sham veteran charities


Federal and state authorities have put sham veteran charities on notice.

“I’m here to warn scam artists: Watch out. We’re investigating complaints. We will track you down, and in partnerships with our [state] attorneys general, we will shut you down,” said John Wobensmith, Maryland Secretary of State, during a news conference announcing the initiative that included other states’ attorneys general, the Federal Trade Commission, and the Better Business Bureau’s Wise Giving Alliance..

The FTC ― with law enforcement officials and charity regulators in 70 offices from every state, the District of Columbia, American Samoa, Guam and Puerto Rico ― announced “Operation Donate with Honor,” which includes the crackdown on sham charities, as well as an education campaign for potential donors. Officials announced more than 100 actions across the country.

FTC Chairman Joe Simons announced action against a charity, Help the Vets, Inc., which was run by Neil G. “Paul” Paulson, Sr., who is reportedly an Army veteran, according to his Guidestar charity profile, and according to an Internet Archive of Help The Vets’ website. His military service couldn’t be immediately confirmed. The Guidestar profile says the charity is closed.

Paulson and Help the Vets Inc. will be banned from soliciting charitable contributions under settlements with the FTC and the states of Florida, California, Maryland, Minnesota, Ohio and Oregon, for allegedly falsely promising donors their contributions would help wounded and disabled veterans. Officials alleged that Help the Vets collected more than $20 million from 2014 through 2017, and that 95 percent of those donations went to fundraising, administrative expenses and Paulson’s salary and benefits ... not to veterans.

Attorneys for Paulson and for Help the Vets Inc. declined to comment, they said, “because there is a lawsuit pending.”

Paulson also reportedly operated charities under the names of American Disabled Veterans Foundation, Veterans Fighting Breast Cancer, Vets Fighting Breast Cancer, Military Families of America and Veterans Emergency Blood Bank.

The FTC has also charged another charity operator, Travis Deloy Peterson, with using fake veterans charities and making millions of illegal robocalls to solicit donations of cars, boats and other property, claiming that the donations would go to veterans charities and that they were tax deductible. Instead, officials allege, he sold the items for his own benefit.

A federal court in Utah has issued a temporary restraining order prohibiting Peterson from making unlawful robocalls or engaging in misrepresentations about charitable donations, as the FTC moves ahead with its enforcement action. Peterson is accused of violating the FTC Act and the FTC’s telemarketing sales rule.

Attempts to reach Peterson were unsuccessful.

According to the FTC complaint, Peterson allegedly used the charity names Veterans of America, Vehicles for Veterans, Saving Our Soldiers, Donate your Car, Donate That Car, Act of Valor, and Medal of Honor.

The state enforcement actions involved charities seeking donations online, and by telemarketing, direct mail, door-to-door contacts, and at retail stores, falsely promising to help homeless and disabled veterans, to provide veterans with employment counseling, and to send care packages to service members.

“It’s the sad truth there are individuals and organizations that seek to take advantage of the genuine altruism of potential donors, and seek fraudulently to raise money on the backs of veterans to benefit themselves,” said Connecticut Attorney General George Jepsen.

That said, officials noted that the vast majority of charitable organizations do good and important work. The “Operation Donate with Honor:” campaign is providing resources to help donors find those charities that legitimately meet the needs the donor wants to help address.

As part of their education campaign, officials are urging potential donors to be aware that just because a charity’s name includes words such as “veteran” or “military,” it doesn’t mean the organization is legitimate. At www.ftc.gov/Charity, officials have provided materials on donating to charities that help veterans, those that help service members and their families, and donating through an online giving portal.

This isn’t the first time the FTC has addressed the problem.

In 2009, the FTC and officials in 49 states launched “Operation False Charity,” a crackdown on allegedly fraudulent telemarketers who claimed to help police, firefighters and veterans.

Debt Settlement Companies Targeted By FTC: New Rules Curb Scams

New Federal Rules Take Aim At Shady Practices Of Debt-Settlement Companies


Got debt?

Well, if you do, the Federal Government has made it more difficult for unscrupulous or sham debt-settlement companies to make false claims that much of your debt can be easily erased.

Debt-settlement or debt-relief services promise to renegotiate or in some way change what you owe to an unsecured creditor or debt collector.

As the economy tanked, many people fell behind on their consumer loans and as a result were drawn in desperation to firms that claimed they could, in some cases, cut debts in half. The promised assistance might have included finding ways to reduce a debt balance, an interest rate or penalty fees.

Law enforcement officials have increasingly been receiving complaints about companies that collected fees but did little, if anything, to settle people's debts.

The Better Business Bureau said that since the recession started in late 2007, it has received thousands of consumer complaints from all 50 states about debt-settlement companies that have driven people deeper into the hole, in some cases causing them to be sued by creditors or even to have wages garnished.

To curb deceptive practices, as of Monday, new rules being implemented by the Federal Trade Commission require debt-relief companies to make specific disclosures to potential customers, such as how long it will take to get results, how much the service will cost and the potential negative consequences that could result from seeking debt relief. The firms are also prohibited from misrepresenting what they can do for debtors, in particular the percentage of debt that is typically erased.

For example, in calculating how well a company has done for customers, a debt-relief service has to include those customers who dropped out or otherwise failed to complete the program.



The new rules amend the Telemarketing Sales Rule and specifically cover telemarketers of for-profit debt-relief services, including those offering credit counseling, debt settlement and debt negotiation services. Legitimate nonprofit organizations that help people renegotiate their debts aren't covered under the new rules. However, companies that falsely claim nonprofit status are subject to the FTC standards.

It's important to note that the rules cover telephone calls made to potential customers and calls made by debtors in response to advertisements and other solicitations, including people working on behalf of a debt-relief firm.

Another phase of the law will take effect next month, and it's significant. Beginning Oct. 27, it will be illegal for a debt-relief service to charge upfront fees. Companies that sell their services over the telephone won't be able to get paid until they successfully settle or reduce a customer's credit card or other unsecured debt.

The fees are often based on a percentage of the amount of debt that you want help with. Let's say you owe $20,000 on four credit cards. You might be charged a fee of 15 percent ($3,000) of the debt you want reduced. Here's the problem. You would pay the fee regardless of how many of the accounts, if any, are actually settled, according to the Consumer Federation of America.

There are also provisions on how money set aside for a settlement offer is to be handled. Customers are told to stop paying their bills and instead send money to the debt-settlement firm with the intention of offering creditors a lump-sum offer for less than what's owed. Under the new rules, a dedicated account has to be established at an insured financial institution, and the money belongs to the client, who can withdraw it anytime without penalty.

These new rules are a great first start, but Congress needs to close some loopholes. The rules don't limit the amount of fees companies can charge. There's just too much room to gouge people. Sen. Charles E. Schumer (D-N.Y.) has introduced legislation that would limit debt-settlement fees.

Further, the rules need to expand beyond debt-relief services offered by telephone. Providers who meet face to face with people before signing them up are exempt from most of the new provisions.

This effort should help stem the scams, but it won't stamp them out. There are just too many desperate debtors willing to believe anything if it means getting relief from their bills.

"It's significant that the FTC is cracking down on the offending debt-settlement companies, but real protection for consumers will mean enforcing the rules, and that'll be harder," said Chris Viale, chief executive of the nonprofit Cambridge Credit Counseling.

If you're in debt, learn about your new protections. Otherwise, you'll just make a bad situation worse. And don't believe in easy fixes. There aren't any.

Sources: BBB, Cambridge Credit, CNN, MSNBC, Washington Post, Youtube