How To Protect Yourself - Scams and Cons Explained

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Learn about scams before they happen. While we cannot offer legal advice we can teach and inform so you know what to watch for. Collection offers may sound valid, but companies want your money and may promise to help. This is your online scam, fraud and con prevention center

On these pages we tell you the truth about settlements scams, debt collector scams, false promises, and how companies later claim "There is no record of that conversation", and how to prevent future frustration

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The FBI says types of public corruption include:

Law Enforcement corruption at the state or local level typically involves the payment of bribes or kickbacks in exchange for official actions or inaction. It also includes any violation of law not necessarily connected to the official duties of law enforcement personnel.

Legislative corruption at the state or local level usually involves payment of bribes or kickbacks in exchange for official action or inaction. These bribes or kickbacks can be received by the legislators themselves, by aides, by staff persons, and/or by outside parties doing business with the government.

Municipal corruption involves illegal activities similar to legislative corruption. Common corruption schemes at a local level include bribes or kickbacks in exchange for: supporting local ordinances, approving local government bond issuance, reducing taxes unlawfully, fraudulently manipulating probate assets, and conspiring with others to rezone property or to influence land-use proposals.

Judicial corruption typically arises out of the corrupt influencing of state or local judges, juries, or court personnel (clerks, bailiffs, probation officials, and other administrative staff). Common corrupt schemes include: payments to judiciary personnel in exchange for dismissal of charges; reduction of charges, bonds, or sentences; waiver of fines; return of forfeitable property; and favorable probation conditions.

Contract corruption usually involves the payment of bribes or kickbacks to local or state officials in exchange for favorable treatment on government contracts. Potential subjects are private contractors, anyone acting on their behalf, and public officials involved in the contracting process (procurement officers, purchasing agents, city councilpersons, and county commissioners).

Regulatory corruption involves payment to local, state, or federal officials in exchange for favorable action or inaction pertaining to identification documents, licensing, and inspection and zoning variances. Unlawful payments are commonly known as bribes and kickbacks.

Prison corruption involves corrections officers taking unlawful payment for acts directly or indirectly related to their job. Common schemes include: smuggling contraband into the facility, granting unlawful privileges, and prematurely releasing inmates.

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The Rise and Fall of Household International and HSBC Finance Free Document - Learn more about the history of predatory lending and causes of the financial crisis. 32 Page Free PDF. Get it now

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The Home Buy Back or Foreclosure Rescue Scam

This scam works because people do not want to lose their home and people are always willing to take a risk. Depending on who you ask this may be a valid deal, and that point depends on how much money the investor is trying to make. A little profit is acceptable, but a huge profit in a short period of time is predatory and thus a scam.

Let there be no mistake - whoever puts up the money wants to own the home, and hoping the almost- evicted homeowner gets into trouble again. Here is how the home buy back or foreclosure saving rescue idea actually works:

A homeowner is behind on the mortgage and is in foreclosure. A prince or princess shows up with an offer to rescue the homeowner. Putting up the money to get the home out of foreclosure, the investor becomes the homeowner. The people being rescued become renters.

At some point the renters want to own the home again. If they close the deal the rescuers make a hefty profit. If the homeowners get into trouble financially they can continue to rent or get evicted, but they do not buy the home.

The transaction was not just a sale with buyback option, but a "disguised loan" with an exorbitant interest rate. In one case, investors advanced $36,000 towards the mortgage and were repaid $79,000 a year later. That's a 120 percent interest rate, and that is where the potential for legal problems comes into play.

The deal is also risky for the investor. Most people lose their homes a second time anyway. If home prices decline the investor makes less. If prices go up and the investor made some money from the rent, there is a potential for a nice profit.

Home buyback or foreclosure rescue is argued as legal, illegal, or a high interest rate scam, depending on who you talk to.

2010/09/03 · by T. Blake