Consumer Corner

April 7, 2009

Beware of Mortgage Foreclosure Rescue Scams! - Help is FREE!!!

Warnings have been issued by the Federal Trade Commission that scam artists are preying on vulnerable homeowners who are facing the possibility of foreclosure.

So-called foreclosure rescue companies or foreclosures assistance firms claim they can help you save your home. Some even offer a money-back guarantee. Their goal is to make a quick profit through "fees" or mortgage payments they collect directly from you, but do not pass on to your mortgage lender. Sometimes they even assume ownership of your home by deceiving you!

If you or someone you know needs assistance with a possible foreclosure, avoid any business that:

• asks for fees, or any money at all up front
• guarantees to stop the foreclosure process
• instructs you not to contact your lender, lawyer, or credit counselor
• encourages you to lease the home to them and then "buy it back"
• tells you to make your mortgage payments directly to them rather than your lender
• tells you to transfer your property title to them
• offers to buy your home for a fixed price that is not supported by the current market
• offers to complete paperwork for you
• pressures you to sign documents even if you don't understand them

For assistance with your mortgage you should contact your lender directly or a Housing and Urban Development (HUD) housing counselor at 1-888-995-HOPE (4673).

The Office of Thrift Supervision has also published a comprehensive guide to protecting yourself from becoming a victim of foreclosure rescue fraud.

If you believe you or someone you know is being victimized or has been victimized by a foreclosure rescue scam, immediately contact the Federal Trade Commission (FTC) at 1-877-382-4357 to report it!

03/17/09

Here are tips for helping your kids use social networking sites safely:

• Help your kids understand what information should be private.
• Explain that kids should post only information that you – and they – are comfortable with others seeing.
• Use privacy settings to restrict who can access and post on your child's web site.
• Remind your kids that once they post information online, they can't take it back.
• Talk to your kids about avoiding inappropriate talk online.
• Tell your kids to trust their gut if they have suspicions. If they ever feel uncomfortable or threatened by anything online, encourage them to tell you.

Debit and Credit Card Number Compromise

Over the last few weeks most financial institutions have received fraud alerts from Visa and MasterCard regarding a security breach at Heartland Payment Systems.

Heartland, the sixth-largest payments processor in the U.S., announced on Jan. 20 that its processing systems were breached in 2008, exposing an undetermined number of consumers to potential fraud. Headquartered in Princeton, NJ, Heartland handles approximately 100 million transactions per month.

We strongly recommend that you monitor your accounts daily, if possible, for the next 12 to 24 months for unauthorized transactions and report them immediately. Additionally, you may place a “Fraud Alert” on your credit files with each nationwide credit reporting agency to alert creditors that you may have been a victim of fraud. We also urge you to obtain a copy of your credit report from each credit reporting agency. You may obtain your credit report annually, from each agency, free of charge at www.annualcreditreport.com.

Phishing Telephone Calls & Text Messages

We have recently receive reports that ATM and Debit Card holders have received text messages and automated telephone calls telling the cardholder that there is a problem with their card.

The cardholder is asked to enter their card number and Personal Identification Number (PIN) to verify that they are in possession of the card.

Please be advised, you will never be contacted by Parsons Federal Credit Union or our Fraud Department via a text message, telephone or email asking you to enter your card number or PIN. This is the newest method thieves are using to steal your card information to manufacture phony cards.

If you have received a message like this, and responded, or experienced any attempts to gain you card information, please contact us immediately so that we can monitor your account and block the card if necessary.

If you have any questions, please contact us at 800-765-4527.

Phishers

The Federal Trade Commission last week warned that phishers are taking advantage of the recent upheavals in the financial services industry to launch attacks on consumers by fraudulently posing as the financial institution that recently acquired their institution or mortgage company. Read here for details.

Financial Literacy

The credit union industry firmly believes that financial literacy is key to living a financially responsible and secure life.

The National Financial Literacy and Education Commission launched a web site designed to provide consumer with information about personal finance matters and is administered by the General Cervices Administration's Federal Citizen Information Center.

We believe the the information and resources this web site makes available are very valuable and urge you to visit www.MyMoney.gov.