(Opinion) Protecting our seniors

BY DJ BETTENCOURT

As the commissioner of the New Hampshire Insurance Department (NHID), my regulatory philosophy is that intervention in the free market should only occur when well-defined, solid objectives can be obtained by such intervention, or when inherent monopoly structures prevent a free market competitive system from operating.

Simply put, the government should foster rather than frustrate competition. It should seek to ensure maximum freedom for free enterprise.

So why is NHID requesting additional regulatory tools (Senate Bill 515) from the Legislature regarding consumer guarantee contracts, otherwise known as RSA 415-C products? We are deeply concerned about the welfare and financial security of our elderly citizens in light of deceptive marketing practices surrounding consumer guaranty contracts.

What are consumer guaranty contracts? Consumer guaranty contracts, also known as consumer warranty contracts, are legal agreements between a consumer and a seller or manufacturer that outline the terms and conditions of a guarantee or warranty for a product or service.

These contracts typically specify what is covered under the warranty, the duration of coverage, any limitations or exclusions, and the process for making a claim in case the product or service does not meet the specified standards. Consumer guaranty contracts provide consumers with assurance that the product or service they are purchasing is of a certain quality and that they have recourse if any issues arise within the warranty period.

Unfortunately, recent developments underscore the urgent need for reform to protect our seniors from falling victim to fraudulent schemes regarding these products by unscrupulous companies.

In a recent NHID consumer alert presentation, we highlighted the disturbing trend of companies using suspect sales tactics to defraud Granite Staters, with senior citizens increasingly becoming targets. Marketers often employ aggressive tactics, preying on seniors’ vulnerabilities by creating a false sense of urgency through limited-time offers, deadlines or discounts.

Impersonation tactics further exacerbate the problem, with some mailers or phone calls masquerading as government agencies, insurance companies or reputable organizations. This tactic is used to deceive seniors into believing that the offer is genuine and worthy of consideration.

Last year, our department received nearly 100 complaints regarding extended warranties, resulting in the recovery of nearly $30,000 in fraudulent charges for individuals. These are not just numbers; they represent real harm inflicted upon our citizens. One such case involved a senior citizen who was duped into purchasing a phony extended warranty for a furnace, resulting in a $5,000 loss.

In response to these alarming developments, we are taking decisive steps to enhance consumer protections. Senate Bill 515, which we have championed, seeks to outlaw marketing flyers lacking company information, mandate registration of all warranty contracts with the state, and empower our department with greater authority to combat fraudulent practices.

Furthermore, we are intensifying efforts to educate consumers on how to recognize and avoid scams. It is imperative that consumers remain vigilant, refrain from providing sensitive information over the phone, and thoroughly review contracts before making any commitments. The proliferation of fraudulent charges resulting from unauthorized withdrawals underscores the importance of safeguarding bank account and credit card information against exploitation.

We encourage all New Hampshire residents to reach out to us with any questions or concerns they may have regarding consumer guaranty contracts. Furthermore, we urge family members to engage in dialogue with older relatives and to monitor their financial transactions for any signs of suspicious activity. While our department is committed to protecting consumers, family members are best positioned to serve as an additional layer of defense.

I am greatly pleased by the broad array of industry stakeholders who have assisted us in crafting this important legislation. Ethical companies selling consumer guarantee products appreciate more than anyone that if bad actors are allowed to continue engaging in the tactics we have seen, it undermines public confidence in their reputation and honest dealing.

Together, we can create a safer marketplace for all by raising awareness, advocating for responsible and well-crafted legislative measures, and empowering consumers with knowledge. We urge the Legislature to help us ensure that our seniors are shielded from deceptive marketing practices and can make informed decisions about their financial well-being.

For assistance or to report suspicious activity, please do not hesitate to contact the New Hampshire Insurance Department at consumerservices@ins.nh.gov or by calling 1-800-852-3416.

DJ Bettencourt is the commissioner of the New Hampshire Insurance Department. He lives in Salem, New Hampshire.