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Recent Scams
A client called me to ask what I thought about an offer he received from his current lender, World Savings Bank. The offer letter quoted a 1.47% rate, and the client called to get more information. The bank representative confirmed the rate offered was 1.47%, "no catches or fine print".
I said I would call World Savings on his behalf. The nice man who answered my call heard I was a CFP calling on behalf of a client, and hung up on me.
The second time I called, the representative didn't hang up on me, and eventually confirmed that the 1.47% rate was the payment rate, not the interest rate. The interest rate, he finally admitted, was higher than the client's existing loan rate. The difference between the 1.47% payment rate and the 6.25% interest rate would be added to the loan principal each month.
A negative amortizing loan in sheep's clothing. World Savings should be ashamed. Here's a copy of the offer letter received by the client.
I received a check by mail for $9.95 from Citibank. Depositing the check enrolls you in a "Credit Monitoring Program" for $9.95 per month, which will automatically be charged to your Citi Visa (Credit reports can be obtained for free from the three major credit agencies).
Here's another one: an email from taxrefunds@irs.gov, directing the recipient to a site that requests Social Security and credit card information, which is then used for identity theft (At least this one is from real crooks, not Citibank and World Savings. Here's the IRS warning).
And another: An email from PayPal, with subject line: "Your payment has been sent" stating that you paid OmegaMove for a $380 watch, using your PayPal account. The watch is to be shipped to someone you don't know. To dispute the transaction, the email directs you to a PayPal look-alike site which asks for personal security information.
For tips on protecting yourself from scams visit the NASD investor information site.
Please think before opening email, answering surveys, clicking on email links and giving information by phone.
