PERSONAL FINANCE
It’s easy, especially at election time, to lose sight of the fact that government, when it’s working at its best, really is looking out for you.
Today we bring you a couple nice breaks for consumers, courtesy of the federal government.
‘Click to cancel’ finalized
In June, I wrote about the ins and outs of subscription canceling, and mentioned that the Federal Trade Commission was in the process of finalizing a “click to cancel” rule that would require businesses to make it as easy to cancel a subscription as it is to get one. A couple of weeks ago, that rule was finalized. Most of it goes into effect 180 days after it’s published in the Federal Register, which means not until late spring. I’ll give you a heads’ up when it happens.
The rule applies to almost all negative option programs. Those are the ones where you’re automatically enrolled unless you opt out. It also prohibits sellers from misrepresenting material facts while using negative option marketing, requires sellers to provide certain information before getting your billing information and charging you, and requires sellers to get your informed consent to negative option features before you’re charged.
You probably have at least one subscription like this – a free trial that kicks in with a monthly fee after a certain amount of time, a gym membership that you have to cancel in person, a newspaper subscription you paid for online to read one thing and have to call and deal with customer service to end it, etc.
The most important aspect of the new rule is that it has to be as easy to quit a subscription as it was to get it. That means if you signed up online, you have to be able to cancel online. If you signed up in person, there has to be an option for you to cancel online or over the phone.
The FTC said that the number of complaints about negative option subscription canceling has steadily increased over the past five years. The FTC is getting about 70 complaints a day, up from 42 a day in 2021.
One important thing that wasn’t in the final rule: a requirement that a business has to remind you about your automatic payment coming up. That means it’s on you to remember that you’ll be charged, rather than on the business to remind you that you’re going to be.
Another note is that businesses and business advocacy groups strongly opposed this rule, saying it’s more work for them and is over-regulation. It’ll be interesting to see what happens to it as we enter a new political climate that analysts say will be less consumer-friendly, and where promises have been made about lifting restraints on businesses.
New airline refund rule
On Oct. 28, the U.S. Department of Transportation rule went into effect that requires airlines to fully refund your ticket if your flight is canceled or significantly changed. You’ll get an automatic cash refund – without having to apply or request it – if you decline the changed flight schedule, don’t rebook on an alternative flight, or don’t take other compensation, like a flight voucher or credit. It applies to flights to, from, or within the United States on foreign or domestic carriers.
The refund must be issued within seven days for a credit card purchase and 20 days for another method of payment.
“Significant change” can be for any reason, including weather. One important aspect of the new rule is significant change in a flight schedule – always a murky area that had been left up to airlines – is clearly defined. A significant change is:
- Changes to departure or arrival times more than 3 hours domestically and 6 hours internationally
- Departures or arrivals from a different airport
- Increase in connections
- Downgrade to a lower class of service
- Connections at different airports or flights on different planes that are less accessible or accommodating to a person with a disability
If you’ve bought tickets, but then can’t travel because of “a serious communicable disease,” you’re entitled to a voucher or credit that’s good for five years. This includes whether you become sick with a disease that could be a threat to others, or a country or medical professional warns against travel to a specific country that you’ve bought a ticket to travel to. If you are ill, you will likely have to submit documentation from a doctor to the airline to get the voucher or credit.
The new rule also allows refunds for baggage delays. If your baggage and you aren’t reunited within 12 hours after the end of a domestic flight or 15-30 (depending on the flight) after an international one, your baggage fee must be fully refunded. In the case of delayed baggage, you must fill out a mishandled baggage report with the airline to get the fee.
The rule also requires refunds for paid services that aren’t delivered or don’t function, like Wi-Fi. Again, this requires you to fill out a form with the airline.
Before you buy your airline tickets, check up on the rules and know what your own obligation is. Keep in mind that the refund for a cancelation or significant change is only issued if you reject any other options offered. The other parts of the rule may require some work and attention on your part. As always, no matter how consumer-friendly the rule, you must be the most enthusiastic and hard-working advocate for yourself.
Scam of the Month
We’ve said it before – scammers just keep getting more sophisticated and finding better ways to separate you from your hard-earned money.
We’ve written before about the “sheriff scam,” in which you get a call from a law enforcement officer saying you’ll be arrested if you don’t immediately pay, over the phone, some phony fine or fee. Just a reminder – law enforcement will NEVER call you up and have you pay for some infraction or fine over the phone. [Even if it’s tickets for the policeman’s ball or some charity, ask them to send you the literature, don’t pay over the phone].
In York, Cumberland, Oxford, Waldo and Androscoggin counties in Maine – and likely many other places – the scammers recently kicked this one up a notch as artificial intelligence and technology has made it easier to make it look like a phone call is from someplace that it isn’t.
The scammers are now using proxy phone numbers that are the same numbers as those used by the sheriff departments or other law enforcement, and identifying themselves by the names of actual deputies or other officers. They say that you have an outstanding warrant or fine, or that you’re being fined for missing a grand jury summons or jury duty. They often ask for payment in bitcoin or by gift card.
Kelley Sintz, who lives in York County, Maine, got such a call. She knew it was a scam, so she recorded it, she told WCSH-TV. The caller told her to drive to her bank and take out money to pay a $6,000 bail bond for a fine she owed. The scammer seemed to be calling from an actual York county Sheriff’s Office phone number – these can be computer-generated and show up on your caller ID, so don’t be fooled. They also used names of real officers at the department.
Sintz said the scam was so convincing that even though she knew it was a scam, she questioned herself.
After talking to two scammers who identified themselves using names of real York County deputies, she hung up and called the York County Sheriff’s Office directly.
When Sheriff Bill King called her back, it was from the same number the scammers used.
That’s a chilling new twist for people who are trying to determine if a call is a scam.
So, how do you know it’s a scam?
Bottom line – if someone calls you and asks for money, never ever ever ever ever pay. Simple as that. Hang up and determine if it’s legitimate. If they identify themselves as being from a certain business or agency, call that business or agency. Be sure you’re calling the real place – don’t call a number you find on an email or text, look it up. If you have a real hard-copy phone directory in your house, that’s the best why to find an accurate number. If you don’t, go online, but make sure it’s the real website for the real business or agency you’re calling. Yes, it’s complicated, but again, the scammers are finding all sorts of new ways to trick you. If you don’t know how to figure out if it’s legitimate or not, call a friend or relative who can.
In the case of this new scam, law enforcement will not ask you, on the phone, to pay for something. Even if they did, they sure as heck aren’t going to ask you to pay with bitcoin or a gift card. But even if they ask for good old-fashioned money, don’t pay it.
Courts deal with fines and payments, not law enforcement departments. But even a court isn’t going to call you on the phone – or text or email you – to ask you to pay a fine. You’ll get a letter in the mail. If you do, and you’re not sure what it’s about, the best thing to do is take it to the courthouse in person to sort it out.
King said that one person who fell victim to the sheriff scam in York County lost $20,000.
“We have to continue to drive home the information to unsuspecting people that we do not collect money,” he told WCSH-TV. “We would never ask you to go to the bank or get a gift card or do anything else.”
Our scam buddy of the month is the AARP, which has a webpage with resources and tips on how to avoid fraud and scams. You don’t have to be a member, or even over 55, to check it out. Click here.
You can reach Maureen Milliken at mmilliken@manchesterinklink.com