Cash for Clunkers sites could be scams
July 2, 2009
It’s been awhile since I’ve issued a scam alert here on the blog, but I have one today.
You may have heard about a new government program called “Cash for Clunkers.” Its technical name is the “Car Allowance Rebate System.” The program is designed to offer an incentive for people driving old cars that aren’t fuel efficient to buy a new, more eco-friendly vehicle.
Like so many other programs out there, plenty of web sites have popped up that look official and claim to be the way to access this program. Some of these sites say they are a place to pre-register for the program and then ask for personal information. You can read more about it here.
There is only one official government site for the Car Allowance Rebate System. That site is run by the National Highway Traffic Safety Administration (NSTSA). The web address for that site is CARS.gov.
That CARS.gov site is the only web site you can rely on for the government-backed program. Do not go to any other web site because it could be a scam.
Too much tax credit? You’ll have to pay it back to the government
May 1, 2009
Many people have gotten a bit of an increase in their paycheck because of the president’s “Making Work Pay” tax credit.
The tax credit is supposed to supply up to an additional $400 a year for working single people and up to $800 for working spouses.
Some people have complained that the increase they get each paycheck is so small that it hardly matters. I figured extra money in the paycheck is extra money, even if it’s not a lot, so I’ll be grateful.
Except that now it’s turning out that many people are getting too much money through the tax credit and are going to end up owing the government money come next tax season.
Yahoo carried this story today about the various types of people who are getting too much extra money in their paychecks. From the sounds of the article, there are a lot of people who are going to have to pay back Uncle Sam next year.
Most people who received too much money this year will simply see a smaller refund check next year, but people who owe money will owe more still.
The IRS is aware of this, according to the Yahoo story, yet it’s not really an issue that’s been made public.
You can read IRS information about the tax credit at this page on the IRS website.
If you’re concerned that you’re receiving too much money through the tax credit, what can you do?
The Yahoo story says, “Check your federal withholding to make sure sufficient taxes are being taken out of your pay. If you are married and both spouses work, you might consider having taxes withheld at the higher rate for single filers. If you have multiple jobs, you might consider having extra taxes withheld by one of your employers. You can make that request with a Form W-4.”
The IRS page I linked to above includes calculators to help you.
False advertising: There is no “federal debt relief plan” for consumers
April 27, 2009
If you get an offer in the mail of a “federal debt relief” plan, throw it away.
Consumers are receiving a mailing — with a return address of
WTAE News in
You can read and see a video of that story here.
As of now, there is no federal debt relief plan for consumers facing credit card debt.
Anyone who struggling with debt should contact a non-profit credit counseling agency that is affiliated with the National Foundation for Credit Counseling and is in good standing with the Better Business Bureau.
Avoid any company that initiates contact with you, charges large upfront fees and is not a non-profit.
Watch out for text message scam
April 14, 2009
It’s time for another scam alert …
Someone has hatched a plot to get your banking information by sending out text messages. WPXI carried a story this morning that people in the
The texts that WPXI reported on were supposedly from Citizens Bank, though the text could come from someone claiming to represent other banks as well.
If you get one of these texts, please do not respond. Let your bank know you received the text and take note of any important information that may be available, such as the number that sent the text.
Your bank will never text message you asking for information about your account.
Watch out for rental scam
April 7, 2009
I feel like I write about scams a lot. Unfortunately there are plenty out there that everyone should be aware of.
The latest scam involves property rentals. According to ConsumerAffairs.com, prospective renters are being led to believe that the National Association of Realtors (NAR), a very real and reputable group, is acting as an intermediary for rental properties. The would-be renters are instructed to send money with the false belief that the NAR will deliver keys to the property. Some of these supposed properties are listed on Craigslist.
The NAR has made it very clear that they are not involved in any such transactions.
Like all business transactions, it is very important that you know exactly who you are dealing with. Before renting a property, make sure to get the name and address of the business so you can do some research with the Better Business Bureau, your state Attorney General’s office and the Federal Trade Commission. Get all details in writing, before you make a payment, and make sure you understand all aspects of the transaction.
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