Friday 23rd July 2010
Residents in West Dunbartonshire are being warned to be aware of money-making or cash rebate schemes following a number of complaints to Trading Standards.
Scammers are taking advantage of people who have lost their jobs or find themselves struggling to make ends meet as a result of the recession. The scams which are mostly internet based are only designed to exploit and take money from you.
In recent months Trading Standards have dealt with various complaints from consumers who have been left hundreds of pounds out of pocket after having fallen victim to various scams.
Some of the scams reported to Trading Standards include being offered the chance to make money working as a mystery shopper. The scammers send you money by means of a money order which you pay into your bank, you then make the purchases using your own cash and send the surplus amount back. It’s only after this that you discover the money order was invalid and has “bounced.”
Residents have also complained about receiving an email from what appears to be the HM Revenue & Customs (HMRC) informing residents that they are entitled to a tax rebate. It looks very convincing and shows the logos of all major banks. You are asked to provide your bank account details so that they can pay the “rebate” in when in fact you will have money taken out of your account. HMRC only notify people of a tax rebate by letter.
Complaints have also been received from residents being misled by adverts for “credit repair” services, where debts can be rescheduled or payments reduced. These adverts falsely claim that there are no fees or do not make it clear that the result can be in fact paying more money over a longer period of time.
Another scam is when residents responded to “cold-calls” from firms that claim they can recover money paid for payment protection insurance or endowments which have been missold to them. Residents have paid a fee upfront, sometimes of several hundred pounds with no guarantee that they were ever entitled to any money back.
Councillor Craig McLaughlin, spokesperson for Corporate Services explains: “The old saying ‘one man’s recession is another man’s boom’ is truer than ever. Sadly, there will always be people who see others’ vulnerability as an opportunity to cash in. These scammers are simply exploiting the fact that so many people are struggling financially and that many will latch onto what appears to be a way of easing the strain.”
Luckily most consumers ignore offers of this type but the scammers target their adverts far and wide and only need a small percentage to respond to make their money. The fact that so many people are facing financial hardship provides them with more chance of success.
Trading Standards Section Head David McCulloch said: “To be clear, there are a number of legitimate firms offering goods and services of this nature. Our message to consumers is to look critically at any offer and think hard before giving any personal or bank account details which could be taken advantage of by fraudsters.
He continued: “Don’t be rushed into making a decision, if it is a legitimate business they will be prepared to give you the opportunity to think things over. Many scammers are based abroad and are hard to track down and all too often we are contacted after the damage has been done.”
Anyone who has been the victim of a scam or who wants any advice about their consumer rights should contact Consumer Direct on 08454 04 05 06.