Consumer Warning

Loan modification scams top 10 warning signs

Scams that promise to “rescue” a homeowner from foreclosure are popping up at an alarming rate. Homeowners need to protect themselves and their homes. This is not an easy task.

There is a lot of shame involved with not being able to pay monthly mortgage payments. Homeowners often become secretive, desperate, and vulnerable when facing foreclosure. They may not tell their closest friends they are behind on their mortgage but their lenders make it public knowledge

Con artists and scammers know where to look to find potential victims. Mortgage lenders publish notices before foreclosing on homes. Private firms compile and sell lists of borrowers who have sub-prime loans, pre-foreclosure properties, and properties in foreclosure. Scammers know that people in these situations are often desperate to keep their homes. All it takes for a con artist to start hunting is a newspaper or mailing list and a telephone.

They approach their potential victims in person, over the phone, via email, or by phone. Scammers advertise their services on TV, the radio, in newspapers, and on the web. They offer foreclosure prevention, foreclosure rescue, and modifications. They describe themselves as foreclosure consultants, mortgage consultant, and modification specialists. No matter what they call themselves or name their services, these predators specialize in taking advantage of homeowners trying to save their homes.

Homeowners should immediately be wary of individuals or companies that contact them offering foreclosure prevention or modification services unexpectedly. If someone offers to negotiate a loan modification or to stop or delay foreclosure for a fee, carefully check his or her credentials, reputation, and experience, watch out for warning signs of a scam, and always maintain personal contact with your lender and mortgage servicer.

The Office of the Comptroller of the Currency (OCC)  issued a consumer advisory bulletin in May 2008 which describes common scams, suggests ways for homeowners to protect themselves, and lists 10 warning signs of a mortgage modification scam. The bulletin is as relevant today as it was last year. The entire advisory can be found here.

These are the top 10 warning signs of foreclosure prevention or modification scams:

1. “Pay us $1,000, and we’ll save your home.” Some legitimate housing counselors may charge small fees, but fees that amount to thousands of dollars are likely a sign of potential fraud — especially if they are charged up-front, before the “counselor” has done any work for you. Be wary of companies that require you to provide a cashier’s check or wire transfer before they take any action on your behalf.

2. “I guarantee I will save your home – trust me.” Beware of guarantees that a person or company can stop foreclosure and allow you to remain in your house. Unrealistic promises are a sign that the person making them will not consider your particular circumstances and is unlikely to provide services that will actually help you.

3. “Sign over your home, and we’ll let you stay in it.” Be very suspicious if someone offers to pay your mortgage and rent your home back to you in exchange for transferring title to your home. Signing over the deed to another person gives that person the power to evict you, raise your rent, or sell the house. Although you will no longer own your home, you still will be legally responsible for paying the mortgage on it.

4. “Stop paying your mortgage.” Do not trust anyone who tells you to stop making payments to your lender and servicer, even if that person says it will be done for you.

5. “If your lender calls, don’t talk to them.” Your lender should be your first point of contact for negotiating a repayment plan, modification, or short sale. It is vital to your interests to stay in close communication with your lender and servicer, so they understand your circumstances.

6. “Your lender never had the legal authority to make a loan.” Do not listen to anyone who claims that “secret laws” or “secret information” will be used to eliminate your debt and have your mortgage contract declared invalid. These scammers use sham legal arguments to claim that you are not obligated to pay your mortgage. These arguments don’t work.

7. “Just sign this now; we’ll fill in the blanks later.” Take the time to read and understand anything you sign. Never let anyone else fill out paperwork for you. Don’t let anyone pressure you into signing anything that you don’t agree with or understand.

Read full story [Examiner]

Meat packing company has announced a ground beef recall

E.S. Miller Packing Company of Montgomery, Illinois, is recalling 219 pounds of ground beef. It may be contaminated with e-coli.
It was distributed to customers and restaurants in the Montgomery and Paw Paw, Ill., areas.

The products subject to recall include 10-pound bags of bulk ground beef and 12- and 15-pound boxes of ground beef patties.

Virginia joins chorus warning about unlicensed home protection plans

Virginia’s Bureau of Insurance is warning consumers to avoid a New York-based seller of home warranty products that has been the subject of orders and lawsuits by other state officials.

The bureau, under the oversight of the State Corporation Commission, issued a consumer warning against National Home Protection Inc. of New York City, which it penalized earlier this year for $25,000 and ordered to stop operating in the state as a home protection insurance company without a license.

National Home Protection offers contracts nationwide through its website, and despite a “cease and desist order” in Virginia, homeowners should be aware that they are unlicensed to operate in the state. State insurance law regulates both home protection insurance contracts and home service contracts, which provide coverage for the repair, replacement, or maintenance of a system or appliance that becomes inoperable.

National Home Protection is the subject of suits by the attorneys general in New York and Texas, and faced “cease and desist” orders by state insurance departments, including those in Arizona and Oklahoma, which also fined the company $25,000 for ignoring the order.

Read full story [IFAwebnews]

IL State fire marshal warning on smoke detectors

Illinois' fire marshal wants residents to check their smoke detectors.

Fire Marshal David Foreman wants people to check to see if they are using a smoke detector that was recalled Thursday because it may not sound in a fire.

The Consumer Product Safety Commission announced the recall of 94,000 smoke detectors. They are the Kidde Model PI2000 Dual Sensor Smoke Alarms.

The smoke detectors were sold between August 2008 through May 2009. They cost between $30 and $40.

Foreman said Illinoisans need to inspect their smoke detectors to see if they have one of those that was recalled.

The Consumer Product Safety Commission says people with recalled smoke detectors should contact Kidde to get a replacement.

Acetaminophen and Liver Injury: Q & A for Consumers

On June 29 and 30, 2009, FDA held an advisory committee meeting in Adelphi, Md., about how to address the problem of liver injury related to the use of acetaminophen in both over-the-counter (OTC) and prescription products. For more information about the meeting, visit the Advisory Committee Web page.

Acetaminophen is the generic name of a drug found in many common brand name OTC products such as Tylenol, as well as prescription products such as Vicodin and Percocet. Acetaminophen is an important drug, and its effectiveness in relieving pain and fever is widely known. This drug is generally considered safe when used according to the directions on its labeling. But taking more than the recommended amount can cause liver damage, ranging from abnormalities in liver function blood tests, to acute liver failure, and even death.

Q: What is acetaminophen?

A: Acetaminophen (pronounced: a∙seet·aminofen), is an active ingredient found in many OTC and prescription medicines to help relieve pain and reduce fever.

It is also found in combination with other active ingredients, called combination medicines, which treat conditions such as:

symptoms of colds and flu
allergy
sleeplessness
Medicines containing acetaminophen are available in many forms, including drops, syrups, capsules, and pills.

Many people call OTC acetaminophen by a brand name, Tylenol. Others may know Percocet or Vicodin, which are prescription brand names that contain acetaminophen and other active ingredients to help relieve pain.

You might see acetaminophen abbreviated as “APAP” on prescription medicines.

In other countries, acetaminophen may have a different name. For example, acetaminophen is known as paracetamol in the United Kingdom.

Q. Are there risks from taking too much acetaminophen?

A: Yes, acetaminophen can cause serious liver damage if you take too much. It is very important to follow your doctor’s directions and the directions on the medicine label.

You may not notice the signs and symptoms of liver damage right away because they take time to appear. Or, you may mistake early symptoms of liver damage (for example, loss of appetite, nausea, and vomiting) for something else, like the flu. Liver damage can develop into liver failure or death over several days.

Acetaminophen is generally safe when taken as directed. To lower your risk of liver damage make sure you do the following:

Follow dosing directions and never take more than directed; even a small amount more than directed can cause liver damage.
Don’t take acetaminophen for more days than directed.
Don’t take more than one medicine that contains acetaminophen at a time. For example, your risk of liver damage goes up if you take a medicine that contains acetaminophen to treat a headache, and while that medicine is still working in your body, you take another medicine that contains acetaminophen to treat a cold.
Q: How can I tell which medicines contain acetaminophen?

A: Medicines have ingredients listed on their labels. On OTC medicines, check the “Drug Facts” label under the section called Active Ingredients. If your medicine contains acetaminophen, it will be listed in this section. On prescription medicine containers, the label will say “acetaminophen” or “APAP.”

Q: When should I talk to a doctor before taking acetaminophen?

A: Talk to your doctor before taking acetaminophen if you

drink alcohol (three or more drinks every day)
have liver disease
Under these conditions, taking acetaminophen puts you at greater risk of getting liver damage, even when taking acetaminophen at the recommended dose.

If you take the blood thinner warfarin, you should also talk to your doctor before taking acetaminophen because taking warfarin and acetaminophen together may raise your risk of bleeding.

Q: How can I safely take acetaminophen?

A: Follow this advice to take acetaminophen safely:

Read all the information given to you by your doctor and follow directions.
Read the information on the OTC “Drug Facts” label or on the prescription label and follow directions.
Be sure you understand the following:
- the dose, which is how much acetaminophen you can take at one time
- how many hours you must wait before taking another dose of acetaminophen
- how many doses of acetaminophen you can take safely each day
- when to stop taking acetaminophen and ask a doctor for help
Never take more than directed, even if your pain or fever isn’t any better. Taking more acetaminophen than directed can put you at risk for liver damage.
Never take more than one medicine that contains acetaminophen. Check the active ingredients of all your medicines to make sure you are taking no more than one medicine containing acetaminophen at a time.
Q: How can I safely give acetaminophen to my child?

A: You can safely give acetaminophen to infants, children, and teenagers if you

Check the active ingredients in the other medicines that your child is taking (or that your child may take) to make sure they don’t contain the active ingredient acetaminophen. Your child should never be taking more than one medicine containing acetaminophen at a time.
Read all the information given by your child’s doctor and follow directions.
Read the information on the OTC “Drug Facts” label or on the prescription label and follow directions.
Choose the right medicine based on your child’s weight and age. On OTC medicines, the Directions section of the “Drug Facts” label tells you:
- if the medicine is right for your child
- how much medicine to give
- how many hours you must wait before giving another dose
- when to stop giving acetaminophen and ask a doctor for help
If a dose for your child’s weight or age is not listed on the label, or you can’t tell how much to give, ask your pharmacist or doctor what to do.

Use the measuring tool that comes with the medicine. It will give the exact dose. If you don’t have the right measuring tool, ask a pharmacist.
Don’t use a spoon that’s meant to be used for cooking or eating. A spoon should not be used to measure medicine because it may give the wrong amount.
Never give more than one medicine that contains acetaminophen. If you give more, it could harm your child.
Prevent medicine accidents:
Keep a record of the medicines you give your child. Write down the dose and time when you give the medicine. This will help everyone who cares for your child know how much medicine your child has had. This will help everyone avoid giving an extra dose by mistake.
Keep medicine where it can’t be seen or reached by children and pets; a locked box, cabinet, or closet is best.
Q: What should I do if the pain or fever doesn’t get better after taking acetaminophen as directed?

A: Take the medicine only as directed. Don’t take more. If the medicine doesn’t help you feel better, talk to your doctor, nurse, or pharmacist.

Q: What should I do if I took too much acetaminophen? What should I do if I gave too much acetaminophen to my child?

A: Don’t wait! Call 9-1-1 or Poison Control at 1-800-222-1222 right away to find out what to do. The signs or symptoms of liver damage may not be noticeable for hours or even days after taking acetaminophen. By the time you notice changes, the liver damage may be severe and could lead to death.

Q: Where can I get more information on acetaminophen?

A: Talk to a doctor, nurse, or pharmacist.
Visit FDA’s consumer Web pages:
Don’t Overdo It with Acetaminophen

Contact the FDA at 1-888-INFO-FDA.
Or, e-mail questions to FDA at druginfo@fda.hhs.gov
This article appears on FDA’s Consumer Updates page, which features the latest on all FDA-regulated products.