Tips for Preventing Medicare Fraud

By: Greg Garcia

As the cost of care rises in the United States, so does the occurrence of health care fraud across the country. In fact, some estimates place the amount of money lost to healthcare fraud in the United States in the tens of MILLIONS of dollars each year. While all health care and health insurance fraud is a problem, scams targeting Medicare are especially pervasive since one major hurdle is often removed for fraudsters. Unlike the with population at large, if an American is over 65, a potential scammer can assume that they have access to Medicare and therefore doesn’t need to do any research or steal any data to perpetrate their crime. Fortunately, there are some simple things we can all do to help avoid being victims of Medicare fraud.

  1. NEVER GIVE OUT YOUR MEDICARE INFORMATION OVER THE PHONE OR TO SOMEONE YOU DON’T KNOW

Medicare is a largely centralized system. Any legitimate Medicare provider will have access to your information already and will never ask for it over the phone. One helpful way to think about this is to treat your Medicare number like your Social Security Number. Protect it and only share it with people or agencies you trust.

  1. NEVER SIGN A MEDICARE OR INSURANCE FORM WITHOUT REVIEWING CAREFULLY

Because fraudsters are able to rely on the widespread use of Medicare, they often try to convince people to sign off on procedures that are either unnecessary, or that were never performed at all. This is something to be ESPECIALLY skeptical of if you are receiving care somewhere other than your regular doctor’s office. Fraudsters often take advantage of mobile medical facilities set up in malls, shopping centers, church parking lots or other public places to try to commit these false claim crimes.

  1. ALWAYS FEEL FREE TO CONTACT MEDICARE

Another advantage to Medicare being a centralized system is that you have a single point of contact to report suspicious behavior and investigate the legitimacy of a service offering. Medicare can be reached by either calling 1-800-MEDICARE or through www.medicare.gov. Medicare also operates their own fraud prevention website in collaboration with the Department of Health and Human Services, the Department of Justice, and the HHS Office of Inspector General. The site can be found at www.stopmedicarefraud.gov and contains a host of helpful tips and reporting tools for preventing and fighting Medicare fraud.

 

Buying a house in Colorado? Here are 5 Tips for your Home Inspection!

By: Aaron Fransua 

Purchasing a house is often the largest purchase a consumer can make in their lifetime, so it’s little wonder why it’s highly recommended that before closing on the deal that a property inspector reviews the property and tries to find any problems for the buyer. But what happens if the property inspector misses something big, something that will cost the buyer several thousand dollars to fix?

I found myself recently in a situation where the property inspector missed several large problems that were very costly to repair. As a first-time homebuyer, I had no idea what to look for as possible problems with a potential property and relied heavily on the property inspector’s opinion. Sure the inspector found some obvious problems such as broken electrical sockets, questionable window locks, and missing smoke alarms. But two significant problems went undetected; that should have been discovered. The first issue was found immediately after closing on the property, and I started moving in. Underneath the sink in the basement bathroom was a tremendous amount of water damage and a thriving colony of black mold. Immediately  I thought back to the property inspection- how did this get missed?! Then it hit me; I remembered how cluttered the cabinet under the sink was at the time of the inspection, and neither the inspector or I wanted to remove all the items the seller stored under there. Simply taking the time to remove a few items, or asking the seller to move them, to inspect the floor board of the cabinet could have saved me quite a bit of money in repairs and mold mitigation.

The second problem, like many household issues, didn’t surface until much later. At the time of inspection, I vividly recall having a lot of questions about the Boiler system. The property was built in the late ’70s and used baseboard heating for the winter, which is something I never used before. The inspector glanced over the boiler system and told me everything looks good, boiler systems last 50-70 years on average, and informed me to have the seller do a tune-up as a condition of the sale. Seemed fair enough and the seller had no qualms with doing a tune-up. It wasn’t until the end of this winter when I brought a contractor out to do another tune-up that I discovered that not only was this boiler system in such bad condition that a tune-up could not be performed, but that it should have never passed inspection since the setup was done backwards, highly corroded, and is in violation of numerous building codes. The cost to replace the system and put it up to code: $14,000! Ouch! This piece of information would have been great to know during the inspection and could have been negotiated during the sale of the property. Needless to say, I felt a bit slighted by my property inspector- how could he have missed this, and could he potentially be liable for such a huge oversight?

Unfortunately, in Colorado, property inspectors are not regulated by any state agencies and usually limit their liability through their contracts. In my particular circumstance, the property inspector had a clause that limits his liability to the purchase price of his services- a measly $200. While there may be some ways to pierce this clause, such as fraud, the likelihood of success is quite small and would cost significantly more in legal fees to do so.

Although I am unlikely to hold the property inspector responsible for his huge oversights, I did come out of this experience with a few lessons that I can pass along:

  1. Be there at the inspection! Don’t just trust that the inspector will look at everything and get back to you. Now is your chance to ask questions about the property, so take advantage of it.
  2. Don’t be afraid to request the seller to move things around to get a better visual. This is where I failed. I noticed there was a huge mess of stuff inside the cabinet underneath the sink, but did not move any of the items to get a proper visual on the condition of the inside cabinet. Moving just a few items would have exposed significant water damage and black mold at the bottom of the cabinet.
  3. Don’t be afraid to ask questions. Unless you’re a contractor, you probably don’t know much about the “guts” of the house: the electrical, plumbing, and HVAC systems. So ask plenty of questions. A good inspector will answer all of your questions thoroughly and will explain what he’s doing and looking at all along the way.
  4. Get a specialist. A home inspector is like a doctor who’s a general practitioner. They both can diagnose problems, and they both know when to refer you to a specialist. If your housing inspector recommends a specialist, you should get one. In my case, bringing in a specialist to review my boiler system would have saved me $14,000 in repairs.
  5. Inspect your inspector. Your real estate agent might suggest a home inspector, and that inspector could turn out to be wonderful. But you’re the one buying the house, so make sure you choose well. Besides asking your friends and neighbors, use the American Society of Home Inspectors to vet their recommendations and make sure you hire someone who’s qualified.

What’s with the Chip?

By: stu.climber

Have you recently received a new credit or debit card with a metal chip on it? You may have noticed some people inserting these cards rather than swiping in the checkout lane. Here are a few things you should know about this new chip technology popping up on cards.

The Good

For credit and debit cards to work, the cards must provide your “payment credentials” information to the merchant that takes your card. The merchant uses this information to authorize the transaction. This is what that magnetic stripe, also known as a “mag stripe,” on the back of your card currently does. However, mag stripes are vulnerable to “counterfeit fraud” which is when a thief copies the data contained in a card’s magnetic stripe. Using this copied information, the thief manufacture phony or counterfeit cards and use them for fraudulent purposes. However, it is far more difficult for a fraudster to make a fake chip card than to make a fake mag stripe card.

These chip cards are common internationally, where spenders dip their card rather than swipe it, because they make counterfeit fraud, which recently accounted for more than a third of all credit card fraud in the U.S., nearly impossible.

The shift to chip cards won’t affect your legal rights that protect you from credit card and debit card fraud. But to be fully protected, you must still review your credit card and debit card statements regularly, and report fraudulent charges immediately.

The Bad

Ultimately there is very little downside associated with these chips. The only real problem is that while these chip cards can provide consumers an extra layer of protection not all retailers have the necessary chip readers and it may be quite a while before we have universal adoption by retailers. Luckily we can still use the magnetic stripe on the back of our cards in stores without these chip readers.

Payday Loan Alternatives and Resources

By: Edison
Payday loans can be useful for those who have an immediate need for cash to meet short-term obligations.  Be sure to exhaust these alternatives prior to seeking a payday loan:
  • —Borrow from a credit union or other small loan lender. Be sure you understand all the fees and terms before you sign.
  • Put off the expense until you have the money. For example, if you need money to repair your car, find other transportation until you have the funds to fix the car.
  • —Request overtime or secure a part-time job to cover the unexpected expense.
  • Contact your creditor and ask for more time to pay or a repayment plan.
  • —Use your credit card or obtain one if you do not currently have one. Even if you have to get a cash advance, it will be much less expensive than a payday loan.

If none of those options are available, a payday loan may be appropriate.  Prior to seeking a payday loan, you should always educate yourself regarding what it means to have a payday loan and what your obligations will be.  The resources below are a great starting point.

Resources:

  • Consumer Federation of America – Payday Loans
  • Consumer Financial Protection Bureau
    • Government agency that provides information and complaint service for consumers
    • consumerfinance.gov
  • National Consumer Law Center

Let Me Ask My Lawyer…

By: Greg Garcia
Of the many types of fraud in the United States, advance fee schemes are among the most devious and frustrating for authorities. This is because these scams, where someone asks for money upfront with the promise of a big payoff later, are only limited by the imagination of the person committing the fraud. Some variations of advance fee schemes that are more common than others include:
  • Debt Elimination Fraud. These scams target people with existing debts and are difficult to distinguish from legitimate debt consolidation services. Generally, these scams involve collecting an upfront fee or payment in exchange for the promise of negotiating away your existing debts. Most people caught in these scams lose the fee they pay to the scammer and also suffer the consequences from their existing debts not being paid.
  • Nigerian Fraud. This scam is so common that it is almost folklore in the United States. In this scheme, someone poses as a government official or other authority figure and asks for help in transferring funds out of Nigeria (or some other country) in exchange for a percentage of the funds. Despite the popularity of these schemes, creative fraudsters are still able to still defraud new victims each year in the U.S.
  • Investor Fraud. These scams often involve emails inviting victims to purchase bonds or other securities and are sent from email addresses containing .gov, .org, or .us. You should always be skeptical of any such email that comes from address that does not END in .gov, .mil, or fed.us.

This is only a small sampling of the types of advance fee fraud out there in the world today. Fortunately, regardless of the form the scam takes, there are a few things you can do to protect yourself in all of these situations. First, always ask to see documentation around anything someone is trying to sell or offer to you. A legitimate business or organization will almost never be concerned with this request. Second, and this is one of my favorite tricks to avoid scams, always tell someone you need to have something reviewed by your attorney. Even if you don’t have an attorney, or don’t actually want to have one you have review what you are looking at, simply mentioning this can be a powerful tool to help weed out fraud. If someone refuses to let you take the time to speak to your attorney, or even worse, asks that you sign something PREVENTING you from doing so, walk away… and maybe talk to your lawyer.

Reverse Mortgage Scams: How to Protect Yourself

By: Greg Garcia

As more American’s move into retirement, more and more people are taking advantage of a reverse mortgage to access the equity in their home. However, this also means that scams involving reverse mortgages are on the rise. These scams can take many forms, including:

  • Contractor Fraud: This scam involves someone convincing you that you need home improvements or repairs that you can pay for by letting them help you take out a reverse mortgage.
  • Flipping Fraud: This type of reverse mortgage fraud involves convincing someone to use a reverse mortgage to move into a smaller, less expensive home. Often these homes have been made to look nice but are actually of very poor quality.
  • Theft: This is the most simple reverse mortgage scam but also the most destructive. In this scam, a trusted advisor or relative convinces someone to take out a reverse mortgage in order to pay off their existing mortgage but instead simply walks away with the funds.

For more information on types of reverse mortgage scams see http://www.investopedia.com/articles/personal-finance/071715/beware-these-reverse-mortgage-scams.asp

Fortunately, there are some simple steps you can take to protect yourself if you are considering a reverse mortgage. First, it is good to know a little bit about how reverse mortgages work. Reverse Mortgage are actually called Home Equity Conversion Mortgages (HECMs) and are insured by the Federal Housing Authority. In order to qualify for an HECM, a borrower must meet the following qualifications:

  • 62 years of age or older
  • Occupy their property as a primary residence
  • Own (at least mostly) their property

Any product that doesn’t meet the above criteria is something you should be skeptical of. Also, there is an excellent network of advisers across the country who specialize in assisting people who are interested in a reverse mortgage. These counselors are generally FHA housing specialists who can offer their services to you for free or at a very low cost and can help you determine if a reverse mortgage is right for you. In addition, these counselors can help you make sure that the product you are looking at is a legitimate HECM. The U.S. Department of Housing and Urban Development maintains a database of HECM counselors across the country that you can use to find help in your area. This database can be found at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/hecm/hecmlist

Just like any other financial product, you should never feel rushed in entering into a reverse mortgage. Get help from the network of HUD advisers and help your community by reporting any suspicious reverse mortgage activity to HUD at 1-800-347-3735.

Does something seem like a scam? Here’s some info on common scams

By: Rusty Trevino

We all hear about scams every day on the news or on a pretty regular basis from our friends, families, and co-workers. Lucky for us, the state of Colorado has created an index of information on common scams that be accessed whenever something seems shady. The Stop Colorado Fraud website has a wealth of information you can use to make smarter purchases or just to make you an expert to your family and friends.

It also has a link to report fraud and to understand specific consumer fraud issues for military and seniors.

http://www.stopfraudcolorado.gov/fraud-center/common-scams

  • Affordable Care Act Scams
  • Business Opportunity Fraud
  • Counterfeit Products
  • Foreign Scams
  • Magazine Sales
  • Super Bowl Ticket Scams
  • Work at Home Scams
  • Odometer Fraud (if you’re buying a used car, probably worth a read)

That’s just a small sampling of the information available. Here’s a sample of what is categorized as Sweetheart Scams-

“In today’s fast paced world of instant communication and social media, many adults have turned to online dating sites to find love, especially around Valentine’s Day. Unfortunately, not everyone using dating sites is looking for romance; some are looking for money, your money. Thousands of people have been victimized by online romance scams and wind up not only embarrassed but with financial losses averaging more than $10,000 per person.”

Scams are a constantly evolving problem, but if you keep yourself informed on what these scams look like, you too can spot the most suspect of consumer deals or strange sounding scams.

Is it safe to eat at Chipotle?

By Rusty Trevino

As consumers, there is one good every one of us purchases, food. We all have our favorite restaurants and foods, but if you’ve been watching the news lately one your favorite restaurants may have been in the headlines. Last year outbreaks of E. Coli has scared customers and lovers of Chipotle alike.

If you’re interested in what the status of your favorite food might be, there’s an easy place you can go to right here on the internet and check, The Food and Drug Administration, their website is below… http://www.fda.gov/

Once you arrive, you can click on the link that reads, “Outbreak-Foods.” Here’s a picture below with what the website looks like and a red arrow pointing to the link. Click on the picture to see it at regular size.

 

Once you’ve arrived, you’ll see a list of recent investigations, but at the bottom you’ll see another link to older investigations. Click on that link and you will be able to find the Chipotle investigation conducted by your tax dollars. If you want to read the investigation on Chipotle, you can see it at the link below.

http://www.fda.gov/Food/RecallsOutbreaksEmergencies/Outbreaks/ucm470410.htm

Remember this tip, so when you hear of food outbreaks, you know exactly where to go to get the full scoop.

Options for Homeowners Facing Foreclosure

By: Beth Michaels
If you are facing foreclosure, these are some options that could help you save your home or minimize your losses. Contact a HUD-approved housing counselor for more information about what might be best for your particular situation.

In Boulder County – contact the Boulder County Department of Housing and Human Services to speak with a HUD-approved counselor.

Website: http://www.bouldercounty.org/dept/housinghumanservices/pages/default.aspx

Phone: 303-441-1000

Outside of Boulder County – contact the U.S. Department of Housing and Urban Development (HUD) to locate a housing counselor near you.

Website: http://www.hud.gov/offices/hsg/sfh/hcc/fc/

Phone: 1-800-333-4636

  1. Refinance

Refinancing is when you get a completely new loan that will pay off and replace your current loan. It could be from your current lender or from another bank. There are costs associated with refinancing, the same as any other loan. You will also have to qualify for a new loan, which could be difficult if you are already delinquent.

Refinancing can be a good option if you are not yet behind on your mortgage payments but you’ve had a change in financial circumstances that makes your current mortgage payments unaffordable in the long-term.

  1. Forbearance

Forbearance is an agreement with your lender to temporarily suspend or reduce your mortgage payments. These agreements can last 3–12 months, but not more than 12 months. Once your financial circumstances have improved you will have to make arrangements to pay off the amount that you delinquent.

Forbearance agreements are most useful for temporary financial hardships, like job loss or unexpected expenses. Forbearance is often combined with a loan modification or a repayment plan once the borrower’s financial situation has improved.

  1. Repayment Plan

This is an agreement to pay off the amount you are delinquent on your mortgage within a certain amount of time. This payment is in addition to your normal mortgage payment.

Repayment plans are typically useful when the borrower is only a few months behind on the mortgage and had a temporary financial hardship that has been resolved. For example, a repayment plan might be useful after a short period of unemployment where the borrower is now making the same amount or more than before the job loss.

  1. Loan Modifications

Loan modifications are a change to some terms of your current loan designed to make payments more affordable. Increasing the term of the loan or reducing the interest rate are a couple ways to achieve a lower payment.

Loan modifications are useful where the borrower has had a long-term change in financial circumstances that make the loan unaffordable. This could be a job loss followed by a new job that pays less, or a long-term increase in expenses, like a new child or recurring medical expenses.

No matter what the reason for the modification, it is only useful if it decreases your payment to an affordable level. Never agree to a loan modification that does not make your payment manageable! If the new payment is not affordable, then you have not solved the problem.

There are many different types of loan modifications. The federal government has loan modifications programs that have very specific requirements. Lenders might have their own private loan modifications programs too, with different requirements than federal programs. If you don’t qualify for a federal loan modification program, it is worth asking if the bank has a private loan modification program.

  1. Pre-Foreclosure Sale

A pre-foreclosure sale is where the borrower sells the house before the foreclosure waiting period is over to pay off the mortgage. If the house is worth less than the borrower owes, this is called a “short sale” and has to be approved by the lender.

A pre-foreclosure sale is useful if you can’t or don’t want to stay in the home, but you do want to minimize your losses. Selling the house in a pre-foreclosure sale will generally mean you receive a higher price than if the home is sole in a foreclosure sale.

  1. Deed in Lieu of Foreclosure

A deed in lieu of foreclosure is where the borrower offers the house to the lender in exchange for the lender forgiving the loan. Whether to accept the deed is up to the lender. The borrower cannot force the lender to accept the house.

A deed in lieu is useful if you can’t or don’t want to stay in the home, but you want to minimize your losses and speed up the process.

  1. Bankruptcy

Talk to a bankruptcy lawyer if you are interested in bankruptcy.

 

For more information about foreclosure avoidance options, contact:

Boulder County Housing and Human Services

Website: http://www.bouldercounty.org/dept/housinghumanservices/pages/default.aspx

Phone: 303-441-1000

Colorado Foreclosure Timeline & Options fact sheet: http://www.bouldercounty.org/doc/hhs/foreclosure-timeline-options.pdf

U.S. Department of Housing and Urban Development

Website: http://portal.hud.gov/hudportal/HUD?src=/topics/avoiding_foreclosure

Phone: 1-800-333-4636

Locate a HUD-approved counselor near you: http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm

Potential Cost of a Payday Loan in Colorado

By: Edison

Payday loans can be difficult to understand, and the costs associated with them can be incredibly burdensome.  Prior to obtaining a payday loan, you should try to understand as much as possible about what you are actually going to be on the hook for.  Here is an example of what potential costs could look like in Colorado:

There are three allowable costs in Colorado
• Finance Charges
• Interest Charges
• Maintenance Charges

Using the maximum loan amount of $500 and the minimum term of 6 months, potential costs could look like this:

1. Finance Charges can equal up to 20% of the first $300 and an additional 7.5% of the remaining $200. These are automatically earned on the date of the transaction.
 $300 x 20% = $60
 $200 x 7.5% = $15
This gives us $75 in finance charges

2. Interest Charges may also be charged at 45% per year for each loan; the charge is only applicable to the amount borrowed, and not any additional fees.
 $500 x 45% = $225
 $225 / 2 = $112.50 [if compounded annually]
This gives us $112.50 in interest charges.

3. Maintenance Charges of $7.50 per $100 borrowed is also allowed and only charged after the first month.
 $7.50 x 5 = $37.50
 There is a limit of $30/month
 $30 x 5 = $150
 These charges do not start until the second month
This gives us $150 in maintenance charges

The maximum cost allowable under Colorado law breaks down as follows:
 $75 – Initial finance charges
 $112.50 – Interest charges
 $150 – Maintenance charges

This gives a total cost of $337.50 for borrowing $500 for six months!!
This amounts to roughly 630%!!

This means that in order to borrow $500, you will ultimately need to pay back $837.50.  This is exactly why it is so important to know what you are on the hook for.  The high cost can drive you into a cycle of needing a payday loan in order to pay off your previous payday loan.