Protect yourself from phony debt collectors

Is your phone ringing off the hook with a so-called debt collector contacting you about a debt you don't owe?

It may be a case of mistaken identity or an honest mistake. But, there's a new wave of fraud is impacting those still struggling in this post-recession economy. Scammers are calling unsuspecting people and falsely claiming that they have defaulted on payday loans and are in danger of being arrested.

The callers have been telling their victims that they're in positions of legal authority representing organizations with official-sounding names such as the "Financial Accountability Association" or the "Federal Legislation of Unsecured Loans." They threaten that adverse action will be taken if they don't pay immediately.

However, in reality the callers are just trying to get their victims to disclose their credit card numbers and bank account information to make payments on their phony debts. To make their stories more convincing, some of the scammers have managed to secure personal details about their victims such as identification numbers and previous addresses.

“Because the scammers have so much information about potential victims, BBB is concerned that this may be the result of a data breach,” says Steve Cox, a Better Business Bureau spokesperson, in a statement.

The first line of protection is to avoid giving out financial information over the phone unless the are sure the transaction is secure.

Are you being pursued for a debt you don't think you owe? The BBB offers five tips to help consumers to fight back against erroneous debt collectors here.

Weekly Deal: Dinner and a movie

Deal Of The Week:
Restaurant.com: Take 90% off $25 gift certificates from Restaurant.com with Consumer United's special code WOW through Thursday, Sept. 30 here.

Other Weekly Deals:
Best Buy: Let Geek Squad setup the ultimate home theater experience without even lifting a finger! This week get $100-$300 off any TV $999 and up with any Geek Squad Home Theater Service here.

TiVo: Score free shipping on a new TiVo Premiere or Premiere XL box here. The system is compatible with Comcast, Time Warner, Cox, Dish Network, DirectTV and many more cable solutions here.

Fandango: Skip the box office lines. Buy advance tickets to "The Social Network" here.

Tips to improve your credit score

Bad credit can hurt your chances of getting a decent mortgage or car loan, so it's important to maintain a top-notch credit score.

The good news? In recent months, households have seen a reduction in credit card debt which is a strong indicator that consumers are saving more, buying less and managing their finances more responsibly.

These days, lenders typically demand 740 scores for a mortgage or auto loan. Does your credit score measure up? Don't fret. Follow these four basic rules to improve your score.

Keep your balances below their limits

Always keep your balances below their limits. Experts call a "utilization ratio" where your balance doesn't exceed 25 percent of your available credit limit on your card. What do lenders want to see? They want to see that you have credit, but don't use it. This means you're a safe customer, and more lenders will be knocking on your door.

Don't pay your bills late

Whatever you do, pay your bills on time. Yes, this sounds extremely basic, but missing a bill by a day or two can be easier than you think. 35 percent of your entire credit score depends on paying your bill on time. Figure out the days when you get paid, and set up an automatic transfer to pay your credit card bills from your checking account online the day after your payday. This way, your credit card bill will be paid on time, and you will only see the money in your checking that you physically have to spend.

Don't have too many... or too few cards

Have no more than six credit cards, and no less than two. Having only one for emergencies can lower your score. Store cards shouldn't be included (and try not to use these!). The rating agencies rank them lower than a conventional credit card according to the Associated Press.

Open one account at a time

Open one new card at a time. Lenders know what you are up to if you're opening more than one account at a time. It's a credit score red flag. Also, make sure you have a home mortgage before you go on an Ethan Allen furniture shopping binge.

Inside Consumer United :: Federico Creatini

Federico Creatini began at Consumer United last December, working full time as a Consumer United Advocate. He loves to save Consumer United members money on basic services, especially when it comes to insurance-related products.

Since Creatini's arrival, Consumer United has expanded its reach throughout the Northeast including New York, New Jersey and Connecticut and hired more people.

"Since I joined less than a year ago I watched the company double its size. Being part of that growth is what I enjoy the most out of my job," he says, adding that he enjoys the "fast-paced, energetic environment" at Consumer United. "What is there not to love about this job?"

What's Creatini's favorite personal finance advice? "Start saving and investing early," he says. "I cook my own meals, walk or bike to work."

Creatini grew up in Buenos Aires, Argentina and enjoys staying active outside of the office. "During my free time I play soccer, do Jiu-jitsu, ride my bike, and whatever type of activity you can challenge me on," he remarks.

Weekly Deal: Make it a movie night

Deal Of The Week:
Best Buy: Movie night has never been easier with an internet connectable HDTV and blu-ray player from Best Buy. This week they're offering an amazing package deal that lets viewers watch new movies instantly, in full HD! Get $710 - $890 off an LG LED HDTV, Blu-ray Player and CinemaNow movie download card package here until Saturday, Sept. 25.

Other Weekly Deals:
TiVo: Score free shipping on a new TiVo Premiere or Premiere XL box here. The system is compatible with Comcast, Time Warner, Cox, Dish Network, DirectTV and many more cable solutions here.

Fandango: Skip the box office lines. Buy advance tickets to "The Social Network" here.

Restaurant.com: Take 80% off $25 gift certificates from Restaurant.com with Consumer United's special code SHARE through Wednesday, Sept. 22 here.

Priceline: Last-minute deals up to 50 percent off on flights, hotels, cars and vacation packages here.

Open an online bank account to save money

Show me the money? For many frugal-minded consumers, it's as simple as opening up a a new bank account.

The average brick-and-mortar bank boasts minimal annual percentage yield (APY) compared to the slew of online banks boasting much higher returns. For example, the online Ally Bank earns 1.25 percent APY compared to Bank of America's .05 percent.

Our advice? Open an online savings account. Check out this list for the more popular online savings and checking accounts.

Also, several savings institutions are offering to-die-for perks to win back customers.

When shopping for a new bank, remember to ask them for latest sign-up deal, because the savings institution may not tell you about their current offer.

Click here for a list of bank perks.

Halloween tips for trick or treat on the cheap

Halloween is lurking around the corner and the costs associated with the tricks and treats of the season can be a pocketbook horror show.

Shelling out hundreds of dollars on candy, costumes, decoration and accessories? Now, that's scary.

Here are a few tips to save on fright night:

Buy candy in bulk
Head to the nearest BJ's Wholesale Club, Costco or Sam's Club and stock up on your Halloween candy stash. Buying smaller, one-pound bags of goodies at the corner drug store costs about the same as a five-pound bag at a bulk-buying warehouse. The caveat? Bigger isn't always better in regards to variety. Also, not everyone is frequented by a slew of trick-o-treaters. Team up with a friend or neighbor when buying in bulk to split the savings.

Get spooked for less
Haunted houses, spooky hayrides and Halloween-themed amusement parks are a fave in the weeks leading up to fright night. Many attractions offer discounts to patrons if they visit during the weekdays instead of the weekend. Also, some haunts, like Six Flags' "Fright Fest," extend discounts to those who purchase tickets in advance at their online store.

Reuse decorations
Like to transform your home into a full-blown haunted hotspot? Consider reusing decorations from previous years or, better yet, buy seasonal decorations that can be used throughout autumn. Uncut pumpkins on the porch can be showcased in the weeks leading up to Thanksgiving. Also, hay bales and garland made from plastic fall leaves can be transformed from a Halloween prop into a turkey day treat with ease.

Click here for additional ways to make your Halloween more budget friendly.

Weekly Deals: Skype, iPods and restaurants

Deal Of The Week:
Skype: Take 20 percent off all 12-month Skype subscriptions until Wednesday, Sept 16 here. It's a one-time only deal and doesn't work on one or three-month packages. Discount applied at check out.

Other Weekly Deals:
Best Buy: Get free shipping on the latest iPods at Best Buy. These models have new and improved features, including a super-cool Multi-Touch for the nano here.

Restaurant.com: Take 70% off $25 gift certificates from Restaurant.com with Consumer United's special code SPORK through Sunday, Sept. 19 here.

Priceline: Last-minute deals up to 50 percent off on flights, hotels, cars and vacation packages here.

CollegeBookRental.com: Heading back to college? Rent your books instead of buying them and save up to 85 percent on your textbooks using CollegeBookRenter.com

Inside Consumer United :: Paul Coffey

Paul Coffey joined Consumer United in July 2009. Originally from Pelham, NH, Coffey attended Johnson & Wales University in Providence where he studied entrepreneurship.

When he's not busy saving our members money, Coffey spends time with his friends and family and during his off-time he enjoys traveling and snowboarding.

A strong believer in Consumer United, Coffey says that he's motivated to save his clients money. “Due diligence is important,” he remarks. “Shop around at least every six months or let us do it for you.”

When asked about his time spent at Consumer United, Coffey says he likes the teamwork involved, adding that his favorite aspect of the job is “making friends and growing my career with the company.”

Lowdown regarding life insurance coverage

Need help navigating through the complexities of selecting the right life insurance policy? You're not alone.

Nearly six in 10 middle-class households--defined as Americans ages 25-44 with household incomes under $100,000--recognize the need for life insurance protection. However, only 50 percent of those surveyed plan to move forward with a policy.

Life insurance roadblocks? Consumers are heading to the Internet for information, but are left with more questions than answers after looking online. Also, many assume that life insurance is beyond their budget and the lack of easy-to-find information hinders them from securing a policy.

"Buying life insurance is challenging for even the most motivated," says Beth Hirschhorn, senior vice president and chief marketing officer for MetLife, the largest U.S. life insurer. "Of those people who say they will buy life insurance, research shows that more than 80 percent will fail in their attempt."

Click here for 10 simple tips to getting started.

Want a free life insurance consultation? Contact Consumer United's expert at 732-917-4878 or e-mail him at Aaron.Biedrzycki@consumerunited.com for a quote.

Last-minute car rentals may save money

Renting a car this fall? Get your motor running.

But, before heading out on the highway, it may be wise to rent the car ahead of time and then check back to see if you can snag a last-minute discount.

Unlike flight fees which generally rise as the departure date approaches, a MousePrint.org blogger found that his car rental prices gradually decreased in the days leading up to his pick-up date. In fact, the original price ranging in the high $400s dropped to $267 four days before the rental, which resulted in almost $200 in savings by tracking the car-rental fees.

Looking to save on auto rentals? Here are a few money-saving tips to help curb costs for those renting a car:

1. Rent in the city: Columnist David Grossman says he saved $103 on a five-day rental after bypassing user fees on airport rentals and opting for a pick-up location in the city.
2. Drop off at the airport: Save money on cab fares by dropping off the rental at the airport instead of the inner-city locale. Most agencies don't charge extra for dropping off at a different location.
3. Capitalize on discounts: Many airlines offer discounts on car rentals as a customer-loyalty perk. Also, groups like the American Automobile Association (AAA) and the American Association of Retired Persons (AARP) offer group savings.
4. Avoid unnecessary insurance: Car rental companies generally recommend insurance consumers may or may not need. However, some auto insurance policies and a handful of credit cards cover car rental insurance. Check with your insurance provider and credit card company before shelling out the extra cash for coverage.
5. Book online: Many car rental companies offer discounts for customers who book online versus calling in the reservation over the telephone. For example, Consumer United partner CheapOair offers discounted rates, starting at just $13 per day here.
   

Click here for additional money-saving tips.