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 Imagine
a situation where a husband goes out one day and, in the midst of the
current economic situation, decides to buy an expensive new boat. A few
weeks later, the bill comes in the mail. His wife opens the bill,
steaming as she realizes what he’s done and sees the monthly payment
they will now have to make on top of all of their other monthly
commitments. As her husband walks into the room, she throws the bill
across the table demanding an explanation. Her husband looks down at the
bill. Realizing he can’t make the payments and seeing how mad his wife
is, he pounds his first on the table and says angrily, “Honey, I am
outraged over this bill that we have to pay!”
This situation seems like a scene we’d find ourselves watching on a
Thursday evening sitcom. In reality, it is what we found ourselves
watching on the news this week as Members of Congress and members of the
Administration pounded their fists and cried “outrage” over
taxpayer-funded bonuses that went to AIG executives. In fact, the word
“outrage” was used in almost every speech on this issue on the House
floor this week.
As I watched those Members express “outrage,” I couldn’t help but be
irritated about their outrage. I am one of only 17 out of 435 Members of
Congress who voted against every single one of the so-called bailout and
stimulus packages under both Presidents Bush and Obama. I did so for the
very reason that there was no accountability over where the money would
actually go. Without accountability and transparency, we will have
waste, fraud, and abuse. In fact, there was not even time to read most
of the bills before leadership rushed to pass them.
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"Americans also have every right to be angry at Congress
expressing outrage over a problem it created itself." |
Over the past several months, those 17 of us have been calling for more
legislative analysis and debate over the bailout bills, and trying to
ask intelligent questions about them. At the same time, the Members who
have been expressing “outrage” this week were the ones ignoring the
rules, rushing bills through by sidestepping the legislative process,
and trying to convince the American people that the world was going to
come to an end if we didn’t immediately pass each bailout or stimulus
package.
Americans have every right to be angry that their money – money meant to
be creating jobs and stabilizing the economy – will instead by used to
pay more than $165 million in executive bonuses at AIG. This is on top
of the revelation over the weekend that roughly half of the taxpayer
money spent to rescue AIG was passed on to European banks and
politically connected Wall Street investment firms in the first
three-and-a-half months of the government bailout.
Americans also have every right to be angry at Congress expressing
outrage over a problem it created itself. If individual Members of
Congress would have just read the bills, they would have likely realized
what most of the analysts have been telling us – that it would take
thousands of government bureaucrats simply to monitor where the bailout
money is actually going and how it is being spent.
Just as the husband couldn’t realistically expect his expression of
outrage to cover for his own irresponsible purchase, Members of Congress
cannot expect their outrage to be some type of “Get Out of Political Hot
Water Free” card. The American people deserve better. They deserve
analysis and debate in Washington. Indeed, it is time that Members of
Congress start asking four basic questions before rushing to pass
bailout and stimulus legislation:
1. Where is the money actually going?
2. How do we know it is going to get where it supposed to go?
3. Will it actually work once it arrives?
4. How will we pay it back?
I am confident if these questions were asked, there would be more than
17 out of 435 of us standing up against the bailout packages. While we
can't redo the mistakes of the past, we can learn from its lessons. Next
week, I will begin outlining the principles I believe should guide
America’s leaders through our current economic situation – principles
that will help open the debate on these issues, put an end to the
bailout madness, and put us on an effective course towards economic
recovery.
Ten Ways to Protect Yourself from Scams
 Especially
in today’s economy, the last thing anyone wants to do is worry about someone
taking the money that they have worked hard to earn. Unfortunately, with
a weak economy comes an increase in financial fraud from thieves who
prey on vulnerable individuals. According to a survey conducted in 2008
by the Consumer Federation of America, the National Association of
Consumer Agency Administrators (NACAA), and the North American Consumer
Protection Investigators, the top complaints that state and local
consumer protection agencies receive concern everyday transactions: car
sales and repairs, home improvement work, credit and loans, debt
collection, retail sales, utility service, Internet sales, door-to-door
and telemarketing sales, and apartment rentals.
The Consumer Federation of America
offers helpful information on ways you can best protect your financial
information and keep it from falling into the wrong hands.
1. Check the track record. When you’re considering making a
purchase from an unfamiliar company, check its complaint records.
Consult your state or local consumer agency, the Better Business Bureau,
and online complaint forums.
2. Do more than kick the tires. Before you buy a used car, take
it to a mechanic you trust to be thoroughly checked out. There are also
services that can give you information on the history of the vehicle.
Spending little money upfront to check the car out can save you lots of
money later.
3. Hire licensed professionals. If you’re hiring professionals
such as home improvement contractors, ask your state or local
consumer
protection agency whether they must be licensed or registered and how
you can check to confirm that they are licensed.
4. Pay the safest way. Pay with a credit card when you buy goods
or services that will be delivered later so that you’ll be able to
exercise your right to dispute the charges if you don’t get what you
were promised.
5. Don’t pay in full upfront. Pay only a small deposit, if
requested, for home improvement or other services, never the full amount
upfront.
6. Recognize the danger signs of fraud. Watch out for any request
to wire money; scare tactics or pressure to act immediately; promises
that you can borrow, win or make money easily as long as you pay a fee
in advance; or any situation in which someone wants to give you a check
or money order and asks you to send money somewhere in return.
7. Get all promises in writing. Verbal agreements are hard to
prove. Carefully read contracts or finance agreements and make sure you
understand them before you sign.
8. Beware of bogus debt collectors that try to trick consumers into
paying debts they don’t owe. Ask your state or local consumer
protection agency how you can confirm whether the collection agency
meets licensing or registration requirements in your state and what to
do if you don’t think the debit is valid.
9. Watch out for foreclosure rescue and loan modification scams.
If your home is in danger of foreclosure and you can’t work out a
solution with the lender, contact your state or local housing finance
agency, or call the HOPE NOW hotline: 1-888-995-4673. There is no fee
for their assistance.
10. Get financial advice from legitimate sources. If you’re
having trouble paying your bills, consult your local nonprofit consumer
credit counseling service. Check your local phone book or call the
National Foundation for Credit Counseling, 1-800-388-2227. If you have a
complaint, your state or local consumer agency can provide advice and
information about your legal rights and may be able to help you if your
efforts to resolve the problem with the company don’t succeed.
For more information on topics such as Banking, Credit, Consumer
Rights, Identity Theft & Fraud, Investments, Money, Mortgages, visit the
Consumer
Information page.
For information from the Virginia
Office of Consumer Affairs, visit the Virginia Department of Agriculture
and Consumer Services by
clicking here.
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