Consumer Rights

Handling Phone Calls With A Debt Collector

By: Andrew Merchant

The Consumer Financial Protection Bureau estimates that over 77 million people in the U.S. have at least one debt in the collection phase. For these 77 million people it is quite possible that a debt collector may be contacting them regarding the debt. But even if you are not one of those 77 million people, you may still be contacted by a debt collector. This is because records can become mixed up, data entered wrong, or maybe even you have the same name as the actual debtor. Whatever the reason, debt collectors have been known to contact people who don’t even have a debt due.

So whether you have a debt in collection or not, you should be aware of best practices when a debt collector contacts you. This blog takes a look things you can do to protect your interests when on the phone with a debt collector.

In Colorado, the law says that a debt collector who is calling you must identify himself within 60 seconds of making contact with you. While it is difficult to ever know whom you are speaking with, once you realize you are talking to a debt collector, keep track of whether the debt collector identified himself and how long it took to do so.

When you’re on the phone with the debt collector, be firm but polite and try not to give them more information than necessary. While you should never lie, it is not illegal for you to keep your financial, employment and other information private. Part of the debt collector’s job is to find out how much they can get you to repay. Keeping your information protected and confidential may give you leverage when it’s time to negotiate a repayment amount.

Don’t be afraid to ask the debt collector questions. Knowledge is power, and the more you know about what they know can help you. Also, asking questions can help you keep better notes of the conversation with debt collector. For example, if a debt collector were to threaten you with a lawsuit it would be good to ask him when and where he plans on doing so. If the debt collector then back peddles with no good answer, it might mean he is threatening you with an action which he doesn’t intend to follow through on – in some cases it’s illegal for the debt collector to threaten something he doesn’t intend to do.

In discussing the debt being collected, be very cautious in committing yourself to any plan or in even acknowledging any debt. You have a right to request verification from the debt collector, and in almost all cases you should make the written request necessary for the debt collector to verify the debt. And there is no need to immediately commit to a payment plan over the phone – take the time to consider the plan thoughtfully and if possible ask a legal or financial expert.

No matter what, take detailed notes during and after your phone call. Not only is it important to keep track of the facts the debt collector shared, it is also important for you to document any false or illegal things the debt collector might have stated. Having a good record will help you in the event you file a complaint or bring your own legal action against the debt collector. At a minimum, be sure to note:

  • The name of the person on the other end of the line
  • The company he or she works for
  • The date and time of the phone call – and how long it lasted
  • The things discussed like timelines, debt amounts, or any other notable comments (such as threats or abusive language)

Armed with the above information you should feel competent to handle a discussion with a debt collector.

Handling Phone Calls With A Debt Collector

By: Andrew Marchant 
The Consumer Financial Protection Bureau estimates that over 77 million people in the U.S. have at least one debt in the collection phase. For these 77 million people it is quite possible that a debt collector may be contacting them regarding the debt. But even if you are not one of those 77 million people, you may still be contacted by a debt collector. This is because records can become mixed up, data entered wrong, or maybe even you have the same name as the actual debtor. Whatever the reason, debt collectors have been known to contact people who don’t even have a debt due.

So whether you have a debt in collection or not, you should be aware of best practices when a debt collector contacts you. This blog takes a look things you can do to protect your interests when on the phone with a debt collector.

In Colorado, the law says that a debt collector who is calling you must identify himself within 60 seconds of making contact with you. While it is difficult to ever know whom you are speaking with, once you realize you are talking to a debt collector, keep track of whether the debt collector identified himself and how long it took to do so.

When you’re on the phone with the debt collector, be firm but polite and try not to give them more information than necessary. While you should never lie, it is not illegal for you to keep your financial, employment and other information private. Part of the debt collector’s job is to find out how much they can get you to repay. Keeping your information protected and confidential may give you leverage when it’s time to negotiate a repayment amount.

Don’t be afraid to ask the debt collector questions. Knowledge is power, and the more you know about what they know can help you. Also, asking questions can help you keep better notes of the conversation with debt collector. For example, if a debt collector were to threaten you with a lawsuit it would be good to ask him when and where he plans on doing so. If the debt collector then back peddles with no good answer, it might mean he is threatening you with an action which he doesn’t intend to follow through on – in some cases it’s illegal for the debt collector to threaten something he doesn’t intend to do.

In discussing the debt being collected, be very cautious in committing yourself to any plan or in even acknowledging any debt. You have a right to request verification from the debt collector, and in almost all cases you should make the written request necessary for the debt collector to verify the debt. And there is no need to immediately commit to a payment plan over the phone – take the time to consider the plan thoughtfully and if possible ask a legal or financial expert.

No matter what, take detailed notes during and after your phone call. Not only is it important to keep track of the facts the debt collector shared, it is also important for you to document any false or illegal things the debt collector might have stated. Having a good record will help you in the event you file a complaint or bring your own legal action against the debt collector. At a minimum, be sure to note:

  • The name of the person on the other end of the line
  • The company he or she works for
  • The date and time of the phone call – and how long it lasted
  • The things discussed like timelines, debt amounts, or any other notable comments (such as threats or abusive language)

Armed with the above information you should feel competent to handle a discussion with a debt collector.

Using Social Media to Improve the Consumer Complaint Process

By: Braden Johnson 

Our social media driven culture is used to posting, sharing, Tweeting, chatting, pinning, blogging, and Skyping – with friends and strangers alike. But, in the past decade, businesses have emerged as a new player in the social media hierarchy. This has given consumers new tools for reaching out to businesses, and has created a whole new type of online customer service.

Consider an airline passenger who, on a long flight, was frustrated when the television screen in front of him was not working. From his phone, he wrote a short Twitter message to JetBlue, the airline on which he was flying, to describe the problem. Before his plane landed, representatives from JetBlue issued a personal response, apologizing for the problem and offering him a $15 credit on his next flight.

This story serves as a great example of the power of social media to reach companies. There are several advantages to this new system. First, social media platforms provide a forum where consumers and businesses can correspond directly. Neither party has to wait until the other is available, which means no waiting on hold and no missed callbacks. Not only does this make the process more convenient for consumers, it benefits businesses by simplifying the complaint resolution process and saving time. Noting these benefits, many companies have started training customer service representatives to respond to social media complaints.

Second, the consumer’s compliant — and the company’s response — are visible to millions of internet users. This creates a virtual handbook of consumer Q&A, where consumers can learn from the resolutions provided for prior customers. More importantly, it also puts pressure on companies to respond fairly to customer concerns. Observers can also see the time that elapsed between complaint and resolution. This can help customers get an idea of how long the process should take, and keeps the business accountable to its consumers for its response time. Companies who do not help their consumers in a fair and timely way risk offending their customer base.

Consumers can use this new approach with relative ease. Twitter and Facebook, the two most common social media forums for customer complaints, offer free accounts. To sign up, all the user needs to provide is a name, birthday, and an email address. After joining, consumers can use the search bar to find the company they wish to speak to, and then type a simple message. The next step is to wait, and follow any instructions that the company provides in its reply. After a few days, if no one responds, the consumer should try other contact methods like email or telephone.

Just because the process is easy does not mean it is foolproof. In fact, some consumers who have posted complaints on social media have later been sued by the company for harassment, defamation, or libel. MyConsumerTips already has a blog (link here) describing how to avoid those lawsuits, but the key takeaway is: use good judgement. Don’t lie, don’t exaggerate, and don’t be malicious. For serious complaints, the consumer may consider contacting the state attorney general’s office or the Consumer Financial Protection Bureau instead.

There are some other drawbacks to social media complaints. First, a response is not guaranteed, and it may not come in the timeline that you expect. Second, social media is a bad forum for some types of questions. Imagine Tweeting to Ikea for help putting a bookcase together. The conversation might take hundreds of back-and-forth messages, which would overrun the company’s Twitter page.

Questions which require personal information are also bad for social media. Imagine posting a question on your bank’s Facebook page, asking whether your recent foreclosure has impacted your line of credit. Not only have you broadcast your recent foreclosure to millions of strangers, the bank will probably need more information (at a minimum, your account number) in order to fully answer your question. You should never give out personal information on social media sites.

Noting the obvious benefits of social media customer service, some industry analysts believe that it will displace email and telephone as the primary means for consumer complaints. Whether or not that occurs, consumers who follow the tips outlined above may find that reaching out via social media is faster, easier, and more successful than other means. Happy Tweeting!

Handling Phone Calls With A Debt Collector

By: Andrew Marchant 

The Consumer Financial Protection Bureau estimates that over 77 million people in the U.S. have at least one debt in the collection phase. For these 77 million people it is quite possible that a debt collector may be contacting them regarding the debt. But even if you are not one of those 77 million people, you may still be contacted by a debt collector. This is because records can become mixed up, data entered wrong, or maybe even you have the same name as the actual debtor. Whatever the reason, debt collectors have been known to contact people who don’t even have a debt due.

So whether you have a debt in collection or not, you should be aware of best practices when a debt collector contacts you. This blog takes a look things you can do to protect your interests when on the phone with a debt collector.

In Colorado, the law says that a debt collector who is calling you must identify himself within 60 seconds of making contact with you. While it is difficult to ever know whom you are speaking with, once you realize you are talking to a debt collector, keep track of whether the debt collector identified himself and how long it took to do so.

When you’re on the phone with the debt collector, be firm but polite and try not to give them more information than necessary. While you should never lie, it is not illegal for you to keep your financial, employment and other information private. Part of the debt collector’s job is to find out how much they can get you to repay. Keeping your information protected and confidential may give you leverage when it’s time to negotiate a repayment amount.

Don’t be afraid to ask the debt collector questions. Knowledge is power, and the more you know about what they know can help you. Also, asking questions can help you keep better notes of the conversation with debt collector. For example, if a debt collector were to threaten you with a lawsuit it would be good to ask him when and where he plans on doing so. If the debt collector then back peddles with no good answer, it might mean he is threatening you with an action which he doesn’t intend to follow through on – in some cases it’s illegal for the debt collector to threaten something he doesn’t intend to do.

In discussing the debt being collected, be very cautious in committing yourself to any plan or in even acknowledging any debt. You have a right to request verification from the debt collector, and in almost all cases you should make the written request necessary for the debt collector to verify the debt. And there is no need to immediately commit to a payment plan over the phone – take the time to consider the plan thoughtfully and if possible ask a legal or financial expert.

No matter what, take detailed notes during and after your phone call. Not only is it important to keep track of the facts the debt collector shared, it is also important for you to document any false or illegal things the debt collector might have stated. Having a good record will help you in the event you file a complaint or bring your own legal action against the debt collector. At a minimum, be sure to note:

  • The name of the person on the other end of the line
  • The company he or she works for
  • The date and time of the phone call – and how long it lasted
  • The things discussed like timelines, debt amounts, or any other notable comments (such as threats or abusive language)

Armed with the above information you should feel competent to handle a discussion with a debt collector.

A Colorado Tenant’s Guide to the Warranty of Habitability

By: Elizabeth Sullivan 

What is the warranty of habitability?

A guarantee in every residential lease that the apartment or home is fit for people to live in. Colo. Rev. Stat. § 38-12-503(1).

 

What kind of conditions would make an apartment or home “uninhabitable” under the law?

The statute lists 11 specific examples of uninhabitable conditions. If an apartment or home lacks one of the following characteristics, it could be considered uninhabitable.

  • 1) Waterproofing and weather protection of the roof, exterior walls, windows, or doors;
  • 2) Plumbing and gas facilities;
  • 3) Running water and reasonable amounts of hot water;
  • 4) Functioning heat correctly installed and in good working order;
  • 5) Electrical lighting correctly installed and in good working order;
  • 6) Common areas that are reasonably clean;
  • 7) Extermination of rodents or vermin;
  • 8) Adequate garbage receptacles;
  • 9) Floors, stairways, and railings in good repair;
  • 10) Locks on exterior doors and locks or security devices on windows; and
  • 11) Compliance with building, housing, and health codes, which, if violated, would cause the home to be dangerous to the tenant

This is not an exclusive list. Other conditions that make an apartment or home unsuitable to live in could count as an uninhabitable condition. Colo. Rev. Stat. § 38-12-505.

 

Does the tenant have to maintain the property in any way?

  • First, a tenant must fulfill maintenance duties agreed to in the lease, with some exceptions.
  • Second, a tenant must maintain the premises in a clean and safe manner which means:
    • complying with building, health, and housing codes;
    • keeping the inside of the apartment or home clean and sanitary;
    • disposing of garbage in a sanitary manner;
    • using utilities, such as heat and air-conditioning, in a reasonable manner;
    • not disturbing the neighbors peaceful enjoyment of their apartment or home; and
    • notifying the landlord if the apartment or home is uninhabitable.
  • And, of course, a tenant should not destroy or damage any part of the apartment or home.

Colo. Rev. Stat. § 38-12-504.

 

Is an “uninhabitable” condition enough to hold the landlord responsible under the law?

No. There are three requirements that must be met before a tenant can hold a landlord responsible under the law:

  • 1) The premises are uninhabitable (one of the conditions listed above or something similar);
  • 2) The condition is “materially dangerous or hazardous” to the tenant; and
  • 3) The tenant gave written notice of the condition to the landlord and the landlord failed to fix the problem in a reasonable amount of time Colo. Rev. Stat. § 38-12-503(2)(a)-(c).

If these three requirements are satisfied, the landlord has “breached the warranty of habitability.” If there is an uninhabitable condition in your home, and you feel that the condition is dangerous or hazardous to you, make sure that you give your landlord written notice of that condition. You can find a sample letter here.

 

What if the tenant caused the uninhabitable condition?

When damage to the property is caused by the tenant or the tenant’s guest, the landlord has not breached the warranty of habitability. However, the landlord can still be responsible under the warranty of habitability if the tenant is a victim of domestic violence or abuse, the damage was a result of that violence, and the tenant gave the landlord written documentation of the domestic violence or abuse. Colo. Rev. Stat. § 38-12-503(4).

 

What remedies are available to tenants?

There are several remedies available to tenants, but some of the rules, such when the tenant can seek each remedy, are complicated. Tenants should read through the statute before choosing to pursue one remedy over another. The remedies include:

  • 1) Terminating the lease early;
  • 2) A court order requiring the landlord to repair the problem (this is called injunctive relief);
  • 3) Damages (such as rent reduction and other expenses); and
  • 4) Attorney fees and costs in some circumstances.

Colo. Rev. Stat. § 38-12-507.

 

Are there any exceptions?

Yes, there are exceptions. Typical residential leases covering apartments or houses are covered by the warranty of habitability. However, the warranty of habitability does not apply to residences at public or private institutions, occupancy in a hotel or motel less than 30 days, or occupancy in a yurt or hut, among many other exceptions. If you are wondering if you fall under an exception, check this list.   Colo. Rev. Stat. § 38-12-511.

Making and Saving Money in the Sharing Economy, Part II

By: Otto Hanson 

This article is the second in a two-part series on this topic.  To see the whole story, please start with Making and Saving Money in the Sharing Economy, Part I.

Airbnb.com

What is it? A web and smart phone app that connects people with extra sleeping quarters to those in need of a place to sleep for short periods. On Airbnb.com you can rent anything from a couch to a castle, from a basement to a bedroom.

What should I look out for? Like Uber and Lyft, make sure that your insurance provider knows what you’re up to and that your renter’s or home-owner’s insurance policy covers you and your guests. Airbnb does offer a $1 million host guarantee, which protects hosts from theft or damage to property caused by a guest. Also like Uber and Lyft, always pay attention to reviews left by others. Also, Airbnb will verify user’s IDs, making sure that a person is who they say they are and that they can be located if needed. Always look for the “Verified ID” badge on a user’s profile.

Finally, as a host, you should always pay attention to local laws and regulations regarding zoning, occupancy restrictions, licensing requirements and taxes. Many municipalities forbid short-term rentals, others require that hosts collect and remit lodging taxes to city governments.  In Boulder, CO, for example, short term rentals in residential units may violate zoning restrictions, licensing requirements, and short term lodging taxation requirements.  However, for the time being, the City of Boulder has publicly announced that it will not be enforcing these regulations against short term rentals.   Always call you local government office to find out if you can offer short term rentals from your home.

 

DogVacay.com

What is it? A platform connecting people with pets to people willing to look after pets.

What do I need to become a pet-sitter? Smart phone or camera + computer; love of pets; and a home that lets you take in pets or transportation to and from the pet-owner’s home (some pet owners prefer their pets stay at home).

How much are people making? The average nightly rate per pet is around $30. When you’re starting out on any sharing economy platform, it’s usually wise to offer low prices until you’ve been reviewed by a few people. Once you’ve got some reviews you can always raise your prices!

 

TaskRabbit.com

What is it? A platform connecting people who need odd jobs done to people who can do those jobs. This is especially exciting in Boulder / Denver because very few “taskers” are listed.

What do I need to become a tasker? Access to the website or smart phone app, time to do tasks, a relatively clean background check (TaskRabbit.com requires this) and a client-focused attitude.

How much are people making? The average hourly rate is around $25, but varies greatly depending on the type of task and the experience / reviews of the tasker.

 

RelayRides.com

What is it? A platform connecting people who need to rent a car to people who are willing to rent out their car. This is also exciting in Boulder because we have a large volume of tourists visiting the city, and very few cars available on the site. Want to rent out your bike instead? Try Spinlister.com.

What do I need to become a tasker? Access to the website or smart phone app, a reliable car, and a strong insurance policy. Note that RelayRides may insure your vehicle for certain liabilities, and renters have the option of purchasing additional coverage through RelayRides.

How much are people making? Depending on the make, model, and condition of your car, you could rent it out for anywhere from $15 to a few hundred dollars a day.

 

General notes on becoming a provider on sharing platforms

When you become a provider of any type of resource, product, or service, you essentially become a business owner. Your customers will have basic expectations about the quality of the product or service they receive. Those expectations may be based on what you’ve promised on your profile or listing, or based on general, reasonable expectations in the field. No matter where the expectations come from, your success will depend on meeting and exceeding customer’s expectations.

Customers will leave reviews about their experience with you. If those reviews are positive, you are likely to get more business, if they’re negative, you may never get another customer on that platform. You cannot simply delete a profile and start from scratch – once you start on any of these platforms, you’re stuck with any reviews you get for life.

Next, as someone providing a product or service in exchange for money, you have a heightened responsibility to make sure that what you’re providing is safe. Always think of safety first, and never put your customer or their property in dangerous situations.

Finally, always be sure that the laws in your jurisdiction do not forbid whatever you’re doing, and remember that you will probably have to pay taxes on any income.

The Printer Paradox

By: James Wilson 

Individuals are well intentioned in wanting to save money, but under certain conditions these objectives actually have the effect of costing more in the long run. This is the classic printer paradox, as described below.

Jeff needs a new printer and wants to get the best value for his dollar. He goes to the local office supply store where he finds Printer A and Printer B. Both printers have the same features and functionality, but Printer A is $30 and Printer B is $50.  Presented with the opportunity to buy essentially the same printer for $20 less, Jeff happily purchases Printer A and heads home.

Over the next six months Jeff has to purchase three ink cartridges to meet the printing needs out of his home office. Each ink cartridge costs $20, bringing Jeff’s six-month total to $90. What Jeff does not realize is that cartridges for Printer B are only $10 each. If Jeff had bought Printer B with three cartridges he would have only spent $80 over the same six-month period.

Consumer protection laws do not tell companies how they must price their products and ancillary services, but they do try to combat information asymmetry—the same type of situation that gives rise to the printer paradox. If Jeff took a little more time, and used the information in the marketplace before buying Printer A, he may have bought Printer B instead. Laws like the Colorado Consumer Protection Act (CCPA) work to prevent misrepresentations in sales and marketing so that the information you use to purchase goods and services helps you make sound decisions.

There are a range of services that help you ascertain the information you need. Typically most consumer agreements have, by law, specific provisions addressing everything from termination rights to collection of payments. Even though products or services may be similar in nature, the specific requirements for each may be different. For example, in Colorado you generally have a minimum three-day period to rescind a new gym membership. A buyer’s club membership, however, has only a minimum one-day cancellation period. Instead of trying to memorize the various requirements for the different products and services you may buy, you should utilize the following resources:

 

Boulder County Community Services (BCCS) – www.bouldercountyhc.org

BCCS has a great team of individuals that specialize in individual counseling and workshops. Topics that they assist with include personal finance, foreclosure information, housing education, and more. Free services like those offered at BCCS should be a top priority when making the large financial decisions in your life. At their counseling appointments and workshops you will learn about properly budgeting the purchase of your home, reducing your debt, and what to look out for before signing up for that next credit card.

 

Department of Regulatory Agencies – www.dora.colorado.gov

DORA is a dedicated agency in Colorado charged with curbing deceptive trade practices and promoting fairness in the marketplace. Whenever you hire a service provider in Colorado who is required to be licensed by the state (e.g. plumber, barber, insurance agent, etc.) you should double check to make sure that their license is current, and review any disciplinary history. Contracting with current licensees with a clean history will better protect you down the road if something goes wrong.

In addition to verifying licensure, the AskDORA feature enables you to ask questions about consumer protection questions you may have. If you need to know more about financial services for example, this is a great place to start.

 

Colorado Attorney General Consumer Protection Section – www.coloradoattorneygeneral.gov

The Consumer Protection Section of the AG’s office helps enforce laws like the CCPA. If you have a complaint regarding a consumer protection issue, this is the office to contact. In addition to being an outlet to field complaints, their website has a long list of resources relating to specific consumer protection issues. In addition to a “Consumer Questions” section—which offers answers to common questions the office receives—the Consumer Resource Guide offers information related to specific topics, including automobiles, scams, credit and lending, health issues, and more. The Consumer Resource guide can be accessed at www.coloradoattorneygeneral.gov/initiatives/consumer_resource_guide.

 

As always, make sure you use consumer protection laws to your advantage by gathering the information you need to continue making informed decisions. If there is something you do not know, but would help you feel confident about your choices, start with the resources listed above.

Making and Saving Money in the Sharing Economy, Part I

By: Otto Hanson

On a planet with rapid growing population and dwindling natural resources, sharing is one of the best and most economical ways to reduce our impact on the environment.  Whether it’s a power drill, a car, a home, or a buck, sharing with strangers can be difficult, and certain safety, transparency, payment processing and review mechanisms must be developed  in order for people to trust sharing with strangers.  Luckily, companies and non-profits are sprouting up all over the globe with crafty, effective platforms designed to enable people to safely share resources with each other.

This two part blog post is designed to introduce people to a few opportunities to get into the sharing economy.  On each of the mentioned platforms, a smart plan and a little dedication should yield cost savings or generate income, depending on whether you choose to consume or provide on the platform.

Before getting into the platforms, a few words of caution.  The author of these posts is not an attorney, and nothing contained herein should be taken as legal advice.   Some of the services provided on the listed platforms are heavily regulated.  If you choose to become a host on Airbnb.com or a driver on Uber or Lyft, for example, you should consult an attorney to make sure you’re aware of relevant laws, as well as any tax, insurance, and licensing requirements.

The following is a sample list of some opportunities to save or make money in the sharing economy.  The first item is specific to Boulder and Denver, CO, but all the others are available nationally (and many of them internationally).

B-Cycle

What is it?  A non-profit bike-sharing program that lets people borrow red bikes all over Boulder and Denver.  An annual membership lets you borrow bikes from any station and drop them off at any station for free, up to thirty minutes at a time (60 minutes for subsidized pass holders in Denver only).

How do I sign up?   Qualified low-income individuals in Denver County can get the Subsidized Annual Plus Access Pass for $10 by calling Wendy at 303-825-3325.  All others should visit the Denver B-Cycle webpage or the Boulder B-Cycle webpage.  Regrettably, Boulder B-Cycle does not currently have a subsidized program, though as of March, 2015, they expected to have one in place soon.

What do I need to sign up?  To sign up for the subsidized B-cycle pass you’ll need to verify that you receive TANF, Snap benefits, rental assistance, or are of a qualifying income level.  A credit card is typically required to sign up, but the Denver B-cycle program has offered to do their best to work with clients without access to a credit card.

What should I look out for?  Overage charges!  In Boulder each additional 30-minute period after the initial free 30 minutes costs $3.  In Denver the first 60 minutes are free (subsidized pass holders only), but each 30-minute period thereafter is $4.  Most importantly, don’t lose a bike. Replacing it could cost $1200.

Uber and Lyft

What are they? Smart phone-based apps that let people who need rides connect with people who are willing to give rides. In Boulder and Denver these services can be cheaper and faster than traditional taxi services.

What should I look out for? As a provider (driver) on either or both of these platforms, you should be sure first and foremost that your insurance provider will cover you AND your passengers in the event of an accident of any type. The moment you take paying passengers into your car you enter into a world of heightened liability – make sure your insurance policy knows you’re taking paying customers and will protect you in an accident.

As a consumer (passenger) on Uber or Lyft, you should always check to make sure your driver is experienced and has a positive rating on the platform. Inexperienced drivers or drivers with negative reviews should be avoided. Finally, you should look out for surge pricing.

Don’t miss information on more platforms, and general guidance on becoming a provider on any sharing economy platform, on Making and Saving Money in the Sharing Economy, Part II.

Online Reviewers Sued for Defamation? How to Protect Yourself

By: Braden Johnson 

The carpet cleaner you hired was late, rude, and left the carpets dirtier than before he arrived. So you find his company’s Facebook page and write a few lines saying what a poor job he did for you. A few months later, you get a letter in the mail. You are being sued by the carpet cleaner for defamation! Is this possible? In today’s social-media driven world, it is.

Technology has given consumers unparalleled opportunities to gather and share information about businesses. With just a few clicks, consumers can share their opinions with millions of people. Businesses are also aware of the power of social media; in fact, many businesses actively seek good reviews and take action to silence bad ones. Suing a consumer for defamation can serve as a powerful way to silence a bad review.

A carpet and rug cleaning business recently sued seven people for defamation after they posted negative reviews about the businesses on a popular consumer review website. According to the owner, the negative reviews brought a 30 percent drop in sales, and he was forced to lay off dozens of people. A lawyer in California, a plastic surgeon in Chicago, and a contractor in Virginia have all filed similar suits.

Although these stories may scare consumers, the companies who bring these lawsuits face many difficulties. First, social-media sites like Facebook, Yelp, and Twitter are protected from many types of lawsuit by federal law. The Communications Decency Act of 1996 protects online service providers from being sued for the actions of their users. So the companies cannot sue the consumer review websites that display the bad reviews, only the person who posted the review. But this invites the second problem: because reviewers are not generally required to post under their real name, companies often don’t know whom to sue. To find the identity of the reviewer, the company must get a court order which requires the website to identify the person. Most consumer review websites fight these requests forcefully.

Even if a company can obtain the identity of the reviewer, defamation lawsuits are difficult to win. The reviewer can escape liability by proving that the review was true, or based on personal opinion. So a review stating that the carpet cleaner was late is not defamation if it is true. And a review claiming that the carpet cleaner is the worst you’ve ever used is not defamation if it is your personal opinion. This shows why defamation suits against consumers typically fail.

There are several ways to protect yourself from a defamation lawsuit without losing your right to voice your opinion. First, only write reviews for companies and products you have actually used. Reviews based on anything less than personal knowledge are far more vulnerable to a defamation claim. Second, don’t exaggerate. Focus on the facts, not just getting revenge on a company. Third, if your complaint is very serious, consider submitting it through another entity. You can reach out to your state attorney general’s office, the Consumer Financial Protection Bureau, or your local office of the Better Business Bureau.  These organizations can insulate consumers from defamation lawsuits if they are used effectively.

Government agencies and the BBB typically investigate and substantiate claims before they publish them. Therefore, it is almost impossible for a reviewer who submits a complaint through these entities to be sued for defamation. Additionally, these entities sometimes offer mediation or arbitration services to help reach an amicable resolution for the consumer. Companies face pressure to respond to a complaint from the BBB, because the company’s BBB rating is at risk if they don’t resolve the problem. Government agencies have even more power. They can make legally binding requests for information, and can bring a lawsuit on behalf of any consumer who was wronged.

As long as consumers use good judgment, and follow the tips outlined above, it is unlikely that they will ever be sued for defamation. But the danger of these suits serves as a great reminder to consumers: be fair and composed in your company reviews, or else they may come back to haunt you.

Phishing Attempts: How to Protect Yourself

By: Glenn Sellers 

One of the more common scams targeting consumers today is a phishing scam. Despite their notoriety however, many people are unfamiliar with what they are. Phishing is an attempt to gain your personal or sensitive information via deception on a virtual interface. This article will let you know how to spot them and how to stay safe from an attack.

To spot a phishing attempt, it is first important to recognize the variety of forms they can take. The following is a list of the various forms of phishing:

  • A classic phishing attempt is just a plain and untailored attempt to get information. The “Nigerian Prince” scam is one of these. They are relatively crude and their success rate has been decreasing in recent years as consumers wise up. They often take the form of an e-mail.
  • Spear phishing is an individualized attempt to gain access to your information. An e-mail or web page is tailored to your specifics, such as your bank account, address, or other information in order to seem more believable.
  • Clone phishing is when a specific web page or e-mail is duplicated to appear like the real thing. Often, link manipulation will be used and a “mirror page” will be set up in order to deceive the consumer.
  • A mal-ware based phishing attempt refers to scams where malicious software is snuck into a user’s PC or Mac and information is relayed via the software. There needs to be some sort of introduction to get the mal-ware into your computer, which can take many forms.
  • Key-loggers track keyboard input. Whenever you go to a web page to enter account information, a password, or other sensitive information, the keystrokes will be tracked and relayed to hackers. These are often done on public computers or through mal-ware.
  • Man in the middle phishing attempts involve a compromised data access point, ranging from cell towers to Wifi routers. All data that passes through the compromised point is filtered and analyzed for useful sensitive information.

Now that you have an idea about the types of phishing attempts, here is some helpful information regarding how to spot and protect yourself against them:

  • Use “https sites” or other forms of encryption. There are abundant resources out there to help get you started with this.
  • Be wary of any suspicious links, especially in your email. This is the primary way that malware gets onto your computer. Anytime you open a link or download something, make sure you know and trust the site it’s coming from. If an unknown source tries to upload an .exe, .zip, or other atypical file to your computer, delete it before opening.
  • Think twice before providing any confidential information, including passwords, SSN, and anything else that may be useful for hackers to access your sensitive information. This can range from checking account information to all the way to seemingly innocuous information like your mother’s maiden name or your elementary school.
  • Use a spam filter in your e-mail. You may filter out useful e-mails periodically, but you can always view your spam folder and mark these as “not spam.” The majority of filtered e-mail will be junk mail or phishing attempts anyway.
  • Always check the URL of a site. A common way for hackers to initiate a clone phishing attempt is with a “mirror page” that looks identical to a legitimate web page, with the only difference being the URL is off.
  • If in doubt, contact the institution in question via phone before filling out a form
  • Avoid public computers and unsecured WiFi entirely when accessing important accounts like online banking or an e-mail account containing sensitive information.