Official-looking letters with a $199 slip of paper that resembles a check are circulating again, NJ.com reported on Sunday, the 8th. When a reporter called the number listed, the call led to a home warranty sales pitch, and no company could be found with the same name as the mortgage company named in the letter. Anyone who receives such mail should search the phone number before calling, and can report it to the Federal Trade Commission (FTC) and the Better Business Bureau (BBB).
NJ.com looked into official-looking letters with a $199 slip of paper that resembles a check. At the very bottom of the slip, in capital letters, are the words 'THIS IS NOT A CHECK.' When the reporter called the number on the letter, an agent explained that it was a coupon for use toward a home warranty service.
According to NJ.com, a reader tipped off the outlet about the letter last month. The letter had no return address and listed a notice date, a 'Record ID,' a phone number for inquiries and the recipient's home address. It also included language pressuring the recipient, saying there was an 'important matter' concerning the home and that an 'assigned waiver' could be canceled seven days after the notice. The tipster said they paid off their mortgage years ago and do not clearly remember doing business with Commonwealth Mortgage Co., the company listed as the current loan holder.
When NJ.com searched the phone number, several BBB Scam Tracker posts came up warning about schemes tied to the number that promote home warranty services and similar products. The Federal Trade Commission (FTC) has also warned about similar mailings that put phrases such as 'final notice' or 'call immediately' on a check-like slip of paper. The FTC said it has received reports that people who called the numbers on such mailings were connected to sellers of home or appliance extended warranties or service contracts.
An automated voice asked for the Record ID, and pressing 0 connected the caller to an agent. The agent gave a company name, but a later public records search turned up no business with that name, so NJ.com did not disclose it. The agent said the price depends on the condition of the home and whether the owner is a senior or a veteran, but never gave a price. Two companies with names similar to Commonwealth Mortgage in the letter were found to have closed in 1992 and 1989, respectively. NJ.com said fraudulent or misleading operators often use names that are the same as or similar to real companies, and that was likely the case here.
NJ.com advised that anyone who receives such a letter should enter the phone number in a search engine along with the words 'complaint' or 'scam' to check it before calling. Similar mailings can be reported to the FTC's reporting site (ReportFraud.ftc.gov) and the BBB Scam Tracker (bbb.org/scamtracker).