AARP in Your State

July 2008

Keep the equity – Gov. John Baldacci, D, recently signed a law designed to protect homeowners from foreclosure “rescue” scams. In such scams, a predatory lender offers to buy a foreclosed property below market value and fraudulently promises to help the homeowner repurchase it. The scammer then steals the homeowner’s equity by saddling the victim with high interest rates and hidden fees, resulting in payments that are beyond the homeowner’s means.  The new law, supported by AARP Maine, establishes licensing requirements for foreclosure purchasers and sets criminal penalties for foreclosure scams. The law requires purchasers to show that sellers have received credit counseling, gives homeowners the right to cancel a contract within five business days, and guarantees that sellers receive at least 82 percent of the property’s fair market value.

June 2008

Rate cut – As part of its takeover of Verizon’s Maine operations, FairPoint Communications will settle a longstanding rate dispute that will lower most consumers’ monthly phone bills by $4. The rate cut should take effect starting with August bills.  Lawsuits brought by AARP and the state Office of Public Advocate in 2001 and 2003 forced the Public Utilities Commission to reexamine Verizon’s rates. As part of its takeover, FairPoint agreed to settle the case with a rate reduction of $18 million a year. In addition, FairPoint will not raise rates for basic service for five years and will expand broadband coverage.  To learn more about the issue, go to www.aarp.org/me and click on “Read the Latest Maine News.”

March 2008

Bank on it – Having cosponsored a successful event last fall to help investors guard against fraud, AARP Maine and the Maine Securities Commission are laying plans to repeat the popular conference later this year. In the meantime, AARP Maine is encouraging members to do a little homework by using AARP resources in print and online. For tips on how to avoid investment scams, visit www.aarp.org/investmentfraud. To order the free brochure “Smart Investing,” call 1-888-687-2277 toll free and ask for stock code D18528. Details for the 2008 safe investing conference will be posted at www.aarp.org/me later this year.