Crooks Target Government Aid Programs

June 29, 2009 — -- When the government is handing out help, there are always crooks who try to help themselves. They either claim to be connected to the government or they charge money for something you can get for free from the government.

There are two examples right now that I want you to be aware of.

I told you last week about the Cash for Clunkers bill that Congress has approved. It provides credits of $3,500 to $4,500 to people who turn in older vehicles and buy more fuel-efficient ones. See more details on Cash for Clunkers in last week's column.

As soon as the Senate gave it a "yes" vote, Web sites popped up trying to take advantage. Many use the words "Cash for Clunkers" in their names and claim to be the go-to spot for information on how to get the government's money for your old car. Of course, there's always a catch, and some of these Web sites appear to be asking for personal information.

The National Highway Traffic Safety Administration (NHTSA) says there is only one official government source of information about the program, and that is www.cars.gov.

As you know, the federal government has two programs in place to help homeowners who are struggling with their house payments. One is called the Home Affordable Refinance Program and helps homeowners refinance into a more affordable mortgage. The other is the Home Affordable Modification Program, which helps homeowners work with their existing lender to lower their monthly payments.

Unfortunately, private businesses have been setting up Web sites and sending e-mails that make it look like they are connected to these plans and advertise that they can save your home from foreclosure. The Federal Trade Commission filed a complaint against a company that called itself "Federal Loan Modification Center."