by Kalowena Komeiji
Director of Communications

Since joining the Foundation nearly two years ago, I learned early on that Kelvin isn’t all that keen on expending the Foundation’s resources toward advertising. However, he recently shifted his opinion slightly when we realized, from conversations with nonprofit service providers, that the growing magnitude of debt scammers is starting to affect hard working and decent island residents. It is a national as well as local problem.  In April, the US Government Accountability Office (GAO) released a report in which their undercover findings were “consistent with widespread complaints and charges made by federal and state investigators on behalf of real consumers against debt settlement companies engaged in fraudulent, abusive, or deceptive practices.” You can read the full report at http://www.gao.gov/products/GAO-10-593t.

The problem in Hawaii is becoming serious enough that we’ve produced two 30-second commercials that are now airing on television. You can also view the spots at the Hawaii CSI website: http://www.hawaiicsi.org. Kelvin also did a live interview with Howard Dicus on Sunrise (Hawaii News Now) on May 25th, and Dennis Oshiro, executive director of Hawaii HomeOwnership Center, will be doing the same on Tuesday, June 1st. Chris Opiopio, a former Aloha Airlines employee, will share her experience of almost being taken on Thursday, June 3rd.

What To Watch For

Credit scammers today are highly sophisticated. They are sending out very official looking notices and they are specifically targeting people with credit problems. How do they do this? They buy credit reports and scan the information for leads.

Wendy Burkholder of Consumer Credit Counseling Service says most legitimate companies won’t seek out the consumer without first receiving an inquiry directly from that consumer. In other words, if you’re being solicited first, you should be wary.

It’s sad that there’s a need for these kinds of warnings here in Hawaii and sadder still that scam operators, many from off-shore, prey on the fear and desperation of decent, hard working people who are experiencing credit problems because of the economic recession.

Don’t get taken.  A good rule of thumb is advice Mom would have given you:

• When in doubt, check it out.
• If it sounds too good to be true, then it probably is.

If you or someone you know needs financial counseling, call Aloha United Way’s 211. They can put you in touch with a reputable nonprofit that can help you to navigate the maze of credit rules and regulations and to consolidate your debt legitimately with creditors.