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On money

Recognize ripoffs and guard identity

By HELEN HUNTLEY
Published August 28, 2005

Don't give your bank account number to telephone solicitors.

I know you're thinking, "I'd never do a thing like that." But what if I offered you a couple of airline tickets? Or how about a vacation package and $500 in grocery coupons? Or maybe a credit card? All I want in return is a small fee. And, of course, I promise if you're not satisfied, you can call and cancel any time for a full refund.

How could you lose?

Lots of people find that kind of sales pitch tempting. If you want to know what happens to some of them, go to www.ripoffreport.com and read eye-opening tales of woe. If the goodies come at all, they aren't what the buyer expected, and refunds are slow or never delivered.

"They still haven't sent my money back," complained Cheryl Bradt, who contacted me from Vallejo, Calif., trying to track down a Pinellas County travel company that took $149 out of her bank account. Of course, I'd never heard of the company, which uses a private mailbox as an address.

The Tampa Bay area is home to many telemarketing operations that target people who live in other states, said Deborah Berry, who investigates consumer fraud for the Pinellas County Office of Consumer Protection. One of the more troublesome is a company that promises credit cards to people with bad credit, taps their bank accounts for hundreds of dollars and fails to deliver.

When bay area residents get a telemarketing call, it's often from a company operating elsewhere, Berry said. She said distance between the company and its targets makes investigations more difficult, as do frequent name changes.

Of course, consumers are better off if they steer clear of the need for an investigation. It doesn't matter how great a deal sounds, if the company behind it isn't reputable, the transaction isn't likely to have a happy ending.

The easiest approach is to say no to telephone solicitors and put your phone number on the National Do Not Call Registry by going to www.donotcall.gov or calling toll-free 1-888-382-1222. Registration is effective for five years.

If you prefer hearing about the great "deals" telemarketers have to offer, be prepared to use your research skills and Internet connection to do some digging. These rules also apply to solicitations that come by e-mail, mailbox or a knock on your door.

Never make a decision on the spot. Ask for information to be mailed to you and check out the company with the Better Business Bureau (www.bbb.org) and any government consumer agency serving the area where the company is located. Also be sure to run a search on the company's name at www.ripoffreport.com and www.google.com If the offer is from a well-known company, see if you can find it mentioned on the company's Web site or call the company directly to verify that the offer is legitimate. Use your common sense and, if you have doubts about a deal, get a second opinion from someone you trust.

Could I be held responsible for taxes my husband owed prior to our marriage? We never filed jointly because of this debt.

You are not responsible for your husband's back taxes. Keep filing separately and keep your bank account and investments in your name only.

What does "homestead" mean and what are the benefits? How do I make my new home homestead?

Homestead is a legal designation for your primary residence. In Florida, homestead property is protected from seizure by creditors (other than your mortgage lender) and qualifies for property tax breaks. There also are restrictions on inheritance of homestead property to protect your spouse and any minor children.

You make your home homestead by living in it. To qualify for property tax breaks, you must apply for homestead exemption in person at your county Property Appraiser's Office. The deadline is March 1 for 2006 taxes.

Helen Huntley writes about investing and markets for the Times. If you have a question about investments or personal finance, send it to On Money. We'll try to answer those we think are of greatest reader interest. All questions must be submitted in writing, but readers' names will not be published. Send questions to Helen Huntley, Times, P.O. Box 1121, St. Petersburg, FL 33731.

[Last modified September 8, 2005, 15:41:47]