Consumer Guy gold: Woman rescued from $80,000 mistake

“Just Because It’s Legal Doesn’t Make it Right.” — Anonymous

By BILL BROOKS

CDA Press Consumer Guy

If you’ve been following this column for the past few months, you’ll remember the case of the senior citizen who was taken advantage of by an RV dealer. Her husband had just passed away and, understandably, her life had radically changed.

Living in the home she shared with her late husband was not an option. She found herself worrying about where she would live. As she approached Coeur d’Alene she saw a number of RV dealers along I-90. She got off the interstate and pulled into one. After explaining her situation, the sales person on duty, over the next few hours, showed her a number of RVs. Before she knew it she had, with the “help” of the sales staff, applied for and been granted a line of credit from a local credit union.

In addition to the used RV, she was sold the financing, at a substantial APR, and a “maintenance” package — all amounting to just around $80,000! As part of the deal, she was required to make a $20,000 down payment by personal check. The check was cashed early the next morning.

A few days later, she told a relative about her purchase. Accompanied by her relative, the woman went to the RV dealership and tried to cancel the purchase. Management of the dealership refused, stressing that if she didn’t make her monthly payments, she would be sued, the used RV repossessed, and her credit ruined. It should be pointed out that she had not taken delivery of the RV.

She didn’t know what to do or who to talk to. Luckily, she was a subscriber to the Coeur d’Alene Press and a reader of this column. She called me and I called the RV dealership and spoke to the manager. I find in these situations reputable businesses are more than willing to cooperate and make things right. Not in this case. The manager blamed the elderly lady and her relative for making a scene at the dealership.

I don’t know about you, but if I think somebody is being taken advantage of and the business isn’t willing to undo wrong — I’ve been known to “make a scene.”

In this case the dealership manager not only refused to cancel the transaction, he repeated his threats to sue the consumer.

I called a local, well-known attorney, and he agreed to talk with the consumer. Apparently the lawyer made the RV dealer an “offer they couldn’t refuse” and the elderly lady got almost all of her money back and the contract canceled.

Problem solved, thanks to The CDA Press and a good local attorney. The RV dealership manager was correct: The transaction was legal, but we all know it was far from right.

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How do we protect our older relatives from crooks, scammers and high-pressure sales attacks? Here are a couple of suggestions:

— If an elderly consumer is having difficulty with bill paying or money management, offer to do it for them. In order to keep them “in the loop,” meet with them weekly or monthly and have them approve all payments and checks. You can even set their account to require double signatures for all checks.

— Set up “alerts” on their credit cards, savings and checking accounts that will notify you when an item is posted exceeding a threshold amount, perhaps $100 or $200.

— Actually become authorized on their account so that you get a copy of all statements.

— As far as credit cards are concerned, open a credit card account in the name of the elderly consumer that has a small charge limit attached – between $100 and $500. Alternatively, you can buy a “disposable” credit card and periodically add funds to the account.

Remember, if you decide to exercise control over someone else’s finances, you also assume serious responsibility. If you abuse your authority you will very likely expose yourself to criminal liability. Theft and elder abuse are serious crimes. If you’re going to help, do it right and have a lawyer help you set up the mechanism.

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QUICK TIP: Lately scammers have been using some pretty tricky tactics to get consumers’ identity and credit information. One is to ask for very personal financial and identity information as part of an online or over-the-phone employment application. Another is as part of “normal and customary” charges to deliver your winnings from the Irish Sweepstakes. “All we need is your bank account number and a credit card number.”

It’s a SCAM! You may have been born at night but it wasn’t LAST night.

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Also avoid an internet site called GoFundMe, various crowd source funding sites and all religious and charity donations that you see on TV or hear on the radio. If you must donate, call and ask to be sent the info by mail. Show it to a friend or relative or call me. If they won’t send you info, don’t donate! Scammers often hide their deeds with appeals to emotion.

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Due to space limitations, I can’t detail or even bring to your attention all the cases I’ve worked on in the past couple of weeks. I will be detailing many more on the blog: cdapressconsumerguy.com

I try to write about cases based on the number of calls I get and the amount of money involved. If I haven’t used your case, please understand and continue to call me.

See my blog for detailed information on RFID skimming and how not to become a victim. The “No Solicitation” high quality window stickers are now available. Go to www.cdapressconsumerguy.com.

I have many more interesting cases that I’m working on as The CDA Press Consumer Guy. Call me at (208) 449-7222, email me at CDAPress ConsumerGuy@gmail.com or fax me at (866) 362-9266. Also include your full name and a phone number. I am available to speak about consumerism to schools, and local and civic groups.

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Bill Brooks is the CDA Press Consumer Guy. He is an active Associate Real Estate Broker for Tomlinson-Sotheby’s International Realty in Coeur d’Alene.