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Sound Advice: October 22 ,2025

SCAMS “R” US

Watch or listen to advertising on the media at your own peril.  Years ago, we tended to believe what we saw on TV, heard on the radio or read in a newspaper.  Those days are long gone. The overwhelming majority of what’s offered today ranges between a stretch and utter and complete nonsense.

Let’s start with commercials from major drug producers that include the suggestion that you ask your doctor if it’s “right for you.” All kinds of drugs are offered in settings that suggest that a wonderful life is just around the corner.  Most of these show groups of happy people.  Yet another miracle?  Probably not.

One example are weight loss drugs.  Yes, they work, but there’s a hitch.  For one thing, there’s the monthly cost that will be at least $165 and possibly much more.  For another, to maintain the weight loss, you need to continue taking the drug.  An improved diet and exercise routine might be as successful and long-lasting without the hefty cost.

Less common, but beginning to appear, are magical stem cell therapies that take care of a wide range of physical conditions.  There are few of these commercials at the moment and they’ll certainly increase as the gullible millions start ordering.

There’s more: the various and sundry “pseudo drugs” that sponsors would have you believe will dramatically improve your life.  They are typically promoted as “supporting” something or other.  The support, if any, is the cash flow provided by unwitting buyers.  The key here is the statement “not intended to diagnose, treat, cure or prevent any disease”, a disclaimer required by the U.S. Food and Drug Administration.  If it’s on TV or a computer screen, the statement will appear in a microscopic type size.  If on radio, it will be spoken so quickly that comprehension will not be possible.

Among the most annoying are those that offer tax relief.  These pitches are all about eliminating fear of the IRS, especially for those who haven’t paid for a long time.  The words scare, frighten, and nightmare are always part of the spiel as is the suggestion that you will get a fresh start.  The latter phrase hints at the IRS Fresh Start Initiative, which may provide relief for taxpayers facing financial distress or hardship.  It is limited to individuals with income under $100,000 (single) or $200,000 (married) with debts below $50,000.  Those people must show genuine inability to pay the tax debt in full, but are willing to commit to timely payments, and be up to date in tax filings.  The installment period is up to 72 months.

Then there’s debt relief.  The suggestion with these is that it’s a secret the credit card companies don’t want you to know.  There’s no secret.  The credit card companies will settle for less than what you owe when facing serious financial hardship.  Debts may be forgiven or a settlement may be reached.  Settlements often reduce the outstanding balance by 30% - 50%.  But there’s a significant downside.  Your credit score with drop substantially, often by 100 points or more and that notation on your credit report will last up to seven years.  While negotiating, late fees and interest will continue.  And, the forgiven part of the debt is usually considered taxable income by the IRS if it exceeds $600 a year.

If that’s not enough, they usually wrap up with silliness such as “resolution specialists are standing by.” Sure they are, typically between midnight and 7 a.m.  And it’s essential for folks to know that “an open phone line has been established.”  What’s a closed phone line?  Or a hot line?  Wear gloves while calling!  Each of these nonsense appeals mentions an award-winning team.  I’m not sure what award they might have won, though it would seem reasonable to assume it was something like the World’s Highest Pile of B.S.  

How about the commercials for selling your life insurance to raise cash?  May be a good idea only if you’re desperate, but there are a few things to consider.  First, you will lose the death benefit.  Second, the cash received may be taxable.  Third, selling may impact eligibility for government programs such as Medicaid.  And, although the ads suggest that term policies may be included, that’s usually only if they are convertible into permanent life policies.

What about time share cancellation commercials?  Yep, more of the same.  Many companies charge large upfront fees with no guarantee of results, sometimes keeping your money even if unsuccessful.  Promises of quick, guaranteed cancellations are often false as timeshare contracts are legally binding and complex to terminate. Before engaging any company, research thoroughly, verify credentials, consider consulting a qualified attorney, and beware of unrealistic promises.

Real estate investment commercials?  One that’s regularly on the air focuses on multifamily housing.  Each has numerous references to high quality, high returns, and a whole family of representations to whet one’s interest.  It’s no surprise that there are concerns about legitimacy, hidden fees, as well as the possibility that returns don’t match the company’s claims.  Also, there are long lock-in periods, typically three to 10 years.

There are many more. 

What is especially disturbing is the reality that many people actually fall for this stuff.  

Best to remember: Caveat Emptor.

 N. Russell Wayne

 203-895-8877

 www.blogspot.soundasset.com

 


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