Ftc Annual Report Details Efforts To Protect Consumers From Fraud
It's not always easy for consumers and businesses to take time out of their day to
take action against fraudulent activities that may put their credit report or identity at risk.
That's where state and federal agencies - like the Federal Trade Commission - come in. The FTC outlined its efforts in a 2010 Annual Report released by the commission's chairman Jon Leibowitz at a meeting with the American Bar Association's Section of Antitrust Law Spring Meeting.
The report outlined efforts to protect consumers against financial fraud, pay-for-delay agreements used by drug companies and other challenges that emerged in the post-recessionary economy.
"This past year the financial downturn has presented huge challenges for many Americans - and for the FTC, Leibowitz said. "The agency has responded by working harder than ever to bring enforcement actions to protect consumers and promote competition."
One form of financial fraud targeted a group of individuals already struggling to make ends meet: distressed homeowners heading toward foreclosure. RealtyTrac figures show that some 2.8 million properties receive foreclosure filings in 2009, meaning there was no shortage of possible victims.
Scammers impersonated government organizations or otherwise misled consumers into believing they would be able to purchase a mortgage loan modification. Operation Loan Lies and Operation Stolen Hope were launched by the FTC to combat these fraud efforts. Since then, the commission has proposed increased disclosure rules as well as a ban on upfront fees and misleading promises.
The FTC also joined efforts with law enforcement officials to establish Operation Short Change and Operation Bottom Dollar to protect consumers from fraudulent job offers and debt relief programs. Many of these efforts cause victims to fall deeper into debt when promises are not fulfilled, according to the report.
Educational materials available in the form of video, print and radio spots have been released by the FTC in order to increase consumers' ability to identify and avoid these fraudulent actions.
Consumers may be able to reduce their risk of being victimized by fraud by avoiding agencies or services that demand large up front fees before providing services. In addition to foreclosure rescue companies, this may also include debt settlement companies. Rather, consumers should speak directly with their lender or a credit counseling service in order to negotiate loans or obtain advice.