Ima Byer

Following several reports of possible rental fraud in neighboring states, the South Carolina Department of Consumer Affairs (SCDCA) is alerting would-be renters in the Palmetto State about this common scam and asking consumers to watch for the signs of potential rental fraud.

Rental fraud scams involve the rental of homes or other properties that the con artist does not own.  An unsuspecting tenant pays a security deposit along with first and last month’s rent. Rent is collected by the fraud perpetrator, but when the fraud is discovered, the tenant is evicted, losing his security and rental deposits. Some crooks are so bold that they will rent a piece of property to several different tenants, collecting advance rents and deposits, and then vanish.

A legitimate landlord is a credit grantor and is therefore justified in asking applicants for sufficient personal information to enable a credit check to be made, as a prerequisite to approving the application. For the majority of routine rental applications such information should be protected and has no legal authority to collect personal information.

Rental fraud victims can be stung twice in this instance - they not only lose money, but they have to worry about possible misuse of their personal information and will have no idea when or where identity theft and fraud will occur. “Consumers need to be alert and have their antennae up,” said SCDCA Administrator Brandolyn Thomas Pinkston. “Often their gut instinct is the best indicator that something is wrong.”

The biggest warning sign of potential rental fraud is when the “owner” or “landlord” is insisting on rent and  security deposit paid in cash or cashier’s check. This prevents the applicant from issuing a “Stop Payment”, if the fraud is discovered in time. Other fraud indicators include: an attractive property advertised at well below market price for the area; a landlord who is evasive when asked questions that he or she should be able to answer; and it is difficult to contact the landlord,once he has the victims money.

Renters who have concerns about rental advertisements that seem too good to be true should take some additional steps:

• In the case of apartments; check with building management, building superintendent, resident manager or caretaker, (emergency contact information is likely posted in the lobby).
• Ask other tenants to whom they pay their rent. 
• When looking for a house to rent, check with the city or county office to confirm ownership of the property and compare the ownership name on file with the information provided by the individual claiming to be the owner.

Finally, prospective renters should never pay a deposit or rent until a formal lease agreement is signed by the tenant and the landlord. Written agreements offer greater protection to both the tenant and the landlord.

When considering a written lease agreement, the tenant should remember to:

• Read the entire contract and ask questions or obtain a legal opinion about objectionable provisions he or she does not understand. Ask for changes, if necessary. If a tenant dislikes certain provisions in the lease, he or she has the right to ask the landlord to amend the lease with written changes. However, if the landlord refuses, which he or she has the right to do, it’s up to the tenant to decide whether to sign the lease. If changes are made, both the tenant and the landlord should initial and date the changes.
• At a minimum, the lease should include the landlord’s name, address and telephone number; address of the rental property; amount of the monthly rent; rent due date and grace period; and terms governing the amount and return of the security deposit.  

If you suspect you are or have been a victim of rental fraud, contact you local law enforcement agency and the South Carolina Department of Consumer Affairs at 1-800-922-1594 (toll-free in SC), (803) 734-4200, or on our website @ www.scconsumer.gov   and click on Live Chat.

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WHAT:       “Shred Day” - Free on-site shredding of sensitive and personal information

WHEN:       August 8, 2008 from 8:00 a.m. - 12:00 noon and 2:00 p.m. - 6:00 p.m.

WHERE:     Citadel Mall (parking lot in front of Sears), 2070 Sam Rittenberg Blvd., Suite #200, Charleston, S C 29407 AND Twin Rivers Lanes, 613 Johnnie Dodds Blvd., Mt Pleasant, S C 29464

WHO:          Consumers wanting to safely dispose of sensitive materials (limit 4 boxes  or bags - paper materials only)

NOTE:         This event is sponsored solely by the South Carolina Department of Consumer Affairs, Shred 360, Citadel Mall, and Twin River Lanes. All Media outlets will receive equal access and opportunity.

For more information, contact the Public Information Division at (803) 734-4190, 1-800-922-1594 (toll-free in SC), or online at www.scconsumer.gov and click on Live Chat.

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• Parents will spend an estimatd $500 on each student in preparation for school. Clothes, shoes, computers, textbooks and school supplies are just a few of the money grabbers. So, in addition to making your back-to-school purchases during the tax-free weekend (August 1-3), keep in mind these other money saving tips from the South Carolina Department of Consumer Affairs.
• Give your budget a reality check.  Assuming you already have a budget, look at it a little differently. Exclude costs that cannot be handled at the store. Such costs might include: enrollment fees, textbooks, band instruments, class dues and athletic fees. Keep these costs in a list separate from your normal shopping list. Doing so will allow you to keep track of required and non-required expenses.
• Eliminate the gas guzzling. Consider your transportation options. In some cases, public transportation may be the way to go. Bus passes for older high school and college age students traveling in groups may be more cost efficient. Bicycling to school may also be an option for your child. If driving, organize a car-pool club to spread the costs around. As with any transportation option, always keep in mind the safety and feasibility of each option.
• Paper or Plastic? When it comes to lunch, consider your two options carefully. Sending a brown paper bag lunch may not be convenient, but will cost less. Using your plastic to pay for a meal plan will minimize early morning scrambles, but will put extra stress on your wallet. It’s the value of convenience vs. the value of the dollar. Either option may be preferable, but choose wisely.
• Use the Used. This is even cheaper than buying used. It’s using used. So what if you have to sharpen the crayons one-by-one or slap a new name on the lunch box? If it’s not broken, don’t buy another. A mini-makeover (a few stickers, labels, or sharpening) and you can cross it off the list.
• Take the list, but check it twice. It’s hard to escape this one, but an alert eye and open mind may save you a few bucks. Look at the list carefully. If it doesn’t specify, determine which items are suggested purchases and which are required. Buy what is required, probably not include include the 2-tier adjustable locker shelves. Second, keep your options open. Shop at warehouses and consider buying in bulk. It may not be as glamorous, but that’s not really the point.
• Wool hats are for summer. Shoes and clothes are a necessary evil when it comes to growing kids and new school years. Seasons, however, are a shopper’s best friend. Off-season deals are better than bargains. They’re steals. So, buy the wool hats in July. your wallet will thank you now and later. As much as possible, pay with cash. It will keep bills low heading into the holidays.
• Coupons aren’t just for grandma. Whether rebates or coupons, discount or preferred shopper savings, deals are a good thing. But, just like grandma’s day, they take a little effort to secure. So, if it means taking the time to cut around the dotted lines to redeem that double-value coupons or mailing in the UPC label, do it. Take a few minutes to save more than a few bucks.
• Compare in comfort. Compare and save. Nothing too original here. The exciting part is that you can do it from the comfort of your couch. Most retail locations now have an online presence, so you don’t have to waste the gas, time, or effort driving around. Just a few clicks and you can identify the best bargains. And since you’ll be reclining amidst plush pillows, you have no excuse not to do a little cost comparison.

For more information, contact the Public Information Division at (803) 734-4190, 1-800-922-1594 (toll-free in S. C.), or online at www.scconsumer.gov & click on Live Chat.

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The South Carolina Department of Consumer Affairs (SCDCA) recovered nearly $2.3 million for South Carolina consumers and saved more than $132 million for businesses during Fiscal Year 2007-2008, according to end-of-year reports compiled by staff members.

The breakdown by division is as follows:

Consumer Services:  $    1,707,000.30

Legal:                        $      569,335.25

Advocacy:                  $132,300,000.00 

Consumer Affairs Administrator, Brandolyn Thomas Pinkson credited the Department staff for its ingenuity and diligence in advocating for South Carolinans. “The State of South Carolina benefits from our efficient and dedicated employees who provide valuable services and programs for its citizens,” she said. “I am particularly pleased that our staff recognizes that how we do things can be as important as what we do,” she explained. “At the Department of Consumer Affairs, we’re committed to the belief that creative, responsible risk-taking in the pursuit of improved customer service is an action to be applauded and encouraged.”

SCDCA’s Consumer Services Division refunds and adjustments to consumers were in many areas as diverse as: automobile and heavy equipment sales, financial institutions, and travel clubs, to magazine subscription companies and unfulfilled rebates.

The Legal Division recoveries were in several general areas, including: criminal investigations - bank/wire/odometer turn backs, compliance review and inspection, credit counseling and debt settlement companies, and physical fitness clubs.

In addition to the recovery for consumers, the Department’s  Advocacy Division saved businesses that purchase workers compensation insurance roughly $132 million: $130 million for the voluntary market, $2 million for the assigned risk portion of workers compensation, and $300,000 for homeowners. This savings occurs on an annual basis as a result of SCDCA’s intervention in the request by the National Council on Compensation Insurance (NCCI) for increased loss costs, as well as its filing for increases in rates for workers compensation insurance, that is purchased from the assigned risk pool.

The South Carolina Department of Consumer Affairs continues to build on its record of success on behalf of consumers who have been wronged in the marketplace. In the past Fiscal Year, SCDCA handled more than 26,000 complaints and inquiries from walk-ins, telephone calls, emails and consumers who filed complaints online. the top complaint categories were vehicle issues, financial institution matters and debt collection.

For more information on the South Carolina Department of Consumer Affairs, call the pubic information division at (803) 734-4190, 1-800-922-1594 (toll-free in SC) or visit our website at www.scconsumer.gov & click on our Live Chat Line.

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With the weather warming up and spring season in full gear, many homeowners are sprucing things up around their house with a little remodeling, before applying for a home equity loan through their lender. Others are looking to cash in on the economic stimulus package by purchasing their very first home. If you are planning to make home improvements this season or realizing the American dream, your lender will need to obtain an appraisal, before your loan or home equity loan is approved. Before you talk to an appraiser, though, review the following guidelines to save yourself from potential legal trouble.

According to the South Carolina Professional Appraisers Coalition, individuals seeking the help of an appraiser should be aware of the following guidelines:

What CAN an appraiser do for you?

• Accept an appraisal request with an approximate or minimum value that is needed by the client as long as the value is not a condition of the assignment.
• Accept an appraisal request that includes a third party’s (including the owner) opinion on the value of the property.
• Receive incentives to complete the appraisal in a timely manner as long as all gifts are properly disclosed in the appraisal report.
• Complete an appraisal ‘pro bono’ as long as the appraiser follows Uniform Standards of Professional Appraisal Practices (USPAP) guidelines.

What CAN’T an appraiser do for you?

• Guarantee a value
• Guarantee the same value or loan amount as a nearby property. (Although, he can tell you sales data of property in the vicinity.)
• Stop an appraisal if the value is not going to reach a client’s “target value”.
• Guarantee a value at the high or low end of a provided range, before an appraisal.
• Offer a discount on an appraisal, if the appraisal results in a sale or closed loan.
• Misrepresent or omit buildings, structures, or other property in an appraisal.

After you have heeded these timely guidelines, you are ready to buy or sell and your lender is ready to apply for a loan on your behalf.

You can also visit www.llr.state.sc.us/pol.asp to make sure you are hiring a qualified appraiser.

For more information, contact the Public Information Division at (803) 734-4190, 1-800-922-1594 (toll free in SC), or online at www.scconsumer.gov & click on Live Chat.

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Gas prices are up, way up, and with no relief in sight an abundance of gas saving products and tips have flooded the market. While a few practical steps will take you the extra mile, some of these products and tips are just watered down.

Consumers should be very skeptical of any products that claim to greatly increase a vehicle’s fuel performance. Many products tout fuel savings of 12 to 25 percent, but the Environmental Protection Agency (EPA) has evaluated or tested more than 100 alleged gas saving devices and has not found any product that significantly improves gas mileage.

In fact, some “gas saving” products may damage a car’s engine or cause substantial increases in exhaust emissions.

There are, however, ways to improve your vehicle’s gas mileage.

Numerous no - or low-cost steps can help combat rising gas prices. The most important place to start is at the gas pump. Buy only the octane level gas you need. All gas pumps must post the octane rating of the gas under the FTC’s Fuel Rating Rule.

Remember, the higher the octane, the higher the price. Check your owner’s manual to determine the right octane level for your car.

Here are some additional tips from the EPA to help you get better gas mileage:

Drive more efficiently

• Stay within posted speed limits.

The faster you drive, the more fuel you use. For example, driving at 65 miles per hour (mph), rather than 55 mph, increases fuel consumption by 20 percent. Driving at 75 mph, rather than 65 mph, increases fuel consumption by another 25 percent.

• Use cruise control.

Using cruise control on highway trips can help you maintain a constant speed and, in most cases, reduce your fuel consumption.

• Anticipate driving situations.

If you anticipate traffic conditions and don’t tailgate, you can avoid unnecessary braking and acceleration, and improve your fuel economy by 5 to 10 percent.

In city driving, nealy 50 percent of the energy needed to power your car goes to acceleration. Go easy on the gas pedal and brakes.

• Avoid unnecessary idling.

Turn off the engine if you anticipate a lengthy wait.

No matter how efficient your car is, unnecessary idling wastes fuel, costs you money and pollutes the air.

• Combine errands.

Several short trips taken from a cold start can use twice as much fuel as one trip covering the same distance when the engine is warm.

• Remove excess weight from the trunk.

Avoid carrying unneeded items, especially heavy ones. An extra 100 pounds in the trunk reduces a typical car’s fuel economy by one to two percent.

Maintain your car

• Keep your engine tuned.

Studies have shown that a poorly tuned engine can increase fuel consumption by as much as 10 to 20 percent depending on a car’s condition.

• Keep your tires properly inflated and aligned.

Car manufacturers must place a label in the car stating the correct tire pressure. The label usually is on the edge of the door  or door jam, in the glove box, or on the inside of the gas cap cover.

If the label lists a psi (pounds per square inch) range, use the higher number to maximize your fuel efficiency. Underinflated tires cause fuel consumption to increase by six percent.

• Change you oil.

Clean oil reduces wear caused by friction between moving parts and removes harmful substances from the engine. Change your oil as recommended by the vehicle manufacturer.

• Check and replace air filters regularly.

Your car’s air filter keeps impurities in the air from damaging internal engine components. Not only will replacing a dirty air filter improve your fuel economy, it will protect your engine. Clogged filters can cause up to a 10 percent increase in fuel consumption.

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Once upon a time selling stopped at the checkout line, but today more and more retailers are offering pricey add-ons like extended warranties.

Extended warranties sound like a bargain - Guaranteed to fix it if it breaks! - but they’re actually a very poor deal for consumers who buy into the false confidence.

There’s a reason, after all, retailers push extended warranties so vigorously.

According to Consumer Reports, stores keep 50 percent or more of what they charge for warranties, which is a much higher profit margin than they make on the actual product.

Why are extended warranties a bad deal?

Many of the repairs are covered by the standard manufacturer warranty that comes with the product, making an extended warranty redundant. Product testers claim few products break within the extended-warranty window, typically two to three years after purchase.

In most cases, if a product has a legitimate flaw it will affect operation shortly after purchase. Other flaws will most likely surface from wear-and-tear after the extended warranty period has expired, and retailers know this.

When consumer electronics and appliances do break, repairs usually cost about the same as an extended warranty.

This means no real savings for the consumer even if the warranty is used.

Retailers pushing extended warranties point out manufacturers’ warranties have shrunk from a year to just 90 days in most instances.

This is especially true for labor, meaning while the parts could be free, paying to have them installed could be expensive.

Retailers may also hard sell the convenience of in-home service or instant replacements for products.

You should check the warranty to be sure this is the case.

Consumers should also be mindful of the falling cost of many products, especially electronics, such that the replacement equivalent for a $300 camera may be only $100 by the end of the warranty.

If you just have to have an extended warranty:

Check your credit card. Many gold and platinum plan credit cards will offer an extension of the original manufacturer’s warranty by as much as one year free of charge.

Shop around. Extended warranties vary in length and terms. Never pay more than 20 percent of the purchase price of the product for one and always try to negotiate a better price. The profit margin on extended warranties is high enough retailers may be inclined to negotiate.

Some retailers might extend the manufacturer’s warranty as well.

Costco, for example, extends the manufacturer’s warranty on televisions and computers to 2 years from the date of purchase at no cost to you.

Read the fine print. If it’s a larger item, like a TV or appliance, look to see whether the extended warranty includes in-home repair or pick-up.

Typically an extended warranty begins the day you purchase the product, so it overlaps with the standard warranty for a year (assuming that’s the term of the standard coverage). This means a three-year policy gives you only two years of additional coverage.

What you can do instead of purchasing an extended warranty:

1.) Read product reviews to find out which brands produce the most reliable product.

2.) Take the money you would have spent on the extended warranty and place it in an interest-accuring savings account. If the product does break use the money, which has been collectiong interest, to have it fixed or to buy a replacement.

3.) Wait for a cheaper replacement. The cost of technology steadily declines from the time it’s introduced to the market.

 If you item ceases to work in three years,  you will probably be able to replace it cheaper than you can have if replaced.

4.) Look into gold and platinum plan credit cards that offer extended warranties free of charge. This may be especially helpful if  you frequently purchase electronics or appliances. �

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Ways to save at the grocery store

Everyone is feeling the pinch at the checkout line and it’s not coming from the fresh lobster you just purchased.

Grocery bills have risen 5.7 percent over the past two years and with no relief from fuel costs, this trend is expected to continue.

Here are a few tips for trimming your grocery bill and flattening your wallet:

• Make a list, stick to it

Make a list of what you need and stick to it. This prevents you from buying unnecessary items - i.e. - You already have four bottles of vanilla extract. Steer clear of impulse purchases; like the newest brand of chocolate chip cookies. Buying duplicates, especially of perishable items. Impulse buys can quickly wreck your budget. While you’re making out your list, go ahead and pre-plan what meals you will cook for the week.

• Eat what you buy

Pay closer attention to expiration dates, become fond of leftovers, or invest in a vacuum-seal device that will allow foods to stay fresh five times longer.

• Look high, then low

Grocery stores place higher-priced items at eye-level, where they’re easiest to see and grab. You’ll usually find lower-priced versions on shelves above and below eye level.

• Bigger isn’t always better

Don’t assume that bigger boxes offer the better savings. Check the unit price listed on the shelf tab and do some basic math to find out if the item in the larger box is a better deal, than the smaller one.  Also, think about it; will you actually eat that much?  The larger box may be the better deal, but it won’t matter if you end up throwing half of it away.

• Meat and greet

Getting to know your butcher can help you save on meats. Many butchers are happy to package smaller cuts of meat. You can request cheaper (tougher) cuts and have them run  through the tenderizer. If you notice a package has reached it’s sell-by date, ask if they’ll mark it down.

• Frozen assets

You normally pay a premium for ready-prepared frozen meals, so it is best to avoid them. However, if you find you eat out alot, because you’re just too tired or pressed for time to cook, frozen meals are a low cost alternative to eating out. 

• Mind the scanners

Whether computer-based or the result of human error, costly mistakes can occur at the register. To avoid them, shop with a partner, so one person can unload, while the other watches the scanner. And if savings don’t ring up until you order is totaled, don’t leave the store without checking your receipt.

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The South Carolina Department of Consumer Affairs (SCDCA) and the Attorney General’s (AG) Office are pleased to announce the launching of the state’s first Mortgage Fraud Hotline.

 Consumers who suspect they are victims of mortgage fraud are encouraged to call the toll-free number 1-800-553-7723 for the Stop Mortgage Fraud hotline. The phone line will be operational Monday through Friday from 8:30 a.m. - 5:00 p.m. and housed at SCDCA.

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Many consumers age 62 or older are finding themselves “house rich, but cash-poor,” meaning their mortgage is paid off, but they are living on a fixed or limited income.

In response, reverse mortgages are becoming increasingly popular alternatives for senior citizens who want their “home equity to work for them.”

A reverse mortgage is a loan in which the lender gives a lump sum, monthly advance, or line of credit, based on the equity in your home. The homeowner retains the title to their home and typically does not have to pay back the loan as long as they live in their home.

However, the homeowner is responsible for maintenance and any applicable taxes.

To qualify for a reverse mortgage you must be 62 or older and own your home.

There are three types of reverse mortgages:

1. FHA - insured
2. Lender insured
3. Uninsured

Each of which vary in costs and terms.

Consult family members, an attorney, or a financial advisor to select the type that is best suited for you.

What to consider when choosing a reverse mortgage:

• Reverse mortgages are rising-debt loans, which means interest is added to the principal loan balance each month. Paying “interest on interest” can compound quickly, devouring the equity in your home. Reverse mortgages can also be either a fixed rate or adjustable, so it is important to understand what the rate is before committing.
• Reverse mortgages use up some or all the equity you have in your home, leaving fewer assets for you and your heirs.
• Your legal obligation to repay the loan is limited by the value of your home at the start of the loan. This could include any appreciation in the value of your home over the duration of the loan. If your home were to increase in value, due to home improvements or an upturn in the market, you would not receive any financial benefit.
• Typically, there are loan-origination fees, closing costs, and if insured-insurance premiums associated with reverse mortgages. Again, since you are not making any regular payments on the loan, interest is accuring on all of these charges and will strip the equity in your home without benefiting you financially.

For more information, contact the Public Information Division at (803) 734-4190, 1-800-922-1594 (toll-free in SC), or online at www.scconsumer.gov & click on Live Chat.

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