Members of the Latino community increasingly are becoming targets of consumer fraud from sales of overpriced computers and credit-card schemes to predatory lending for cars and homes, community leaders say.
Regional officials representing counties, cities, AARP and the Federal Trade Commission met yesterday in Chevy Chase to discuss ways they can help Latinos avoid such schemes and to identify new avenues that fraudulent businesses are using.
As the purchasing power of Latinos grows in the United States, criminals have become more sophisticated in their efforts to target immigrants. Many schemes involving Spanish-speaking salespeople who are hawking credit cards, mortgages and other financial products have emerged as a growing concern among community leaders.
Some immigrants are not aware of their consumer protection rights or who to contact for help, said Myriam A. Torrico, Hispanic/Latino Initiative administrator for the Montgomery County Department of Housing and Community Affairs.
"Many Latinos, once they fall into a problem, feel they are unique and they put the fault on themselves," Torrico said. "They feel embarrassed and don't want to report what happened."
About 70 people from Maryland and Virginia yesterday identified the most common schemes affecting Hispanics based on their discussions with immigrants. They included deceptive credit-card offers, credit counseling services, check cashing and identity theft.
A study conducted by the FTC last year found that Hispanics are twice as likely to be victims of consumer fraud as are whites.
"The problem comes from a lack of English dominance, lack of financial education and a lack of experience," said Alvaro R. Puig, Hispanic outreach liaison with the FTC.
The FTC, which began its Hispanic Law Enforcement and Outreach Initiative last year, has sponsored similar events in other cities including Chicago, Dallas, Los Angeles and Miami. Yesterday's meeting was the second annual effort in this region. The FTC has brought more than 20 cases against vendors during the past year who targeted Latinos with various products and services, including English-language courses and weight-loss supplements.
Deceptive credit-card schemes are widespread, Torrico said, because many Latinos want to build credit but don't have bank accounts or aren't financially sophisticated. In some cases, vendors tell consumers they will secure them a line of credit for an upfront fee of a few hundred dollars. The "credit cards" turn out to be accounts for a specific catalog or a gift certificate for certain retailers, Puig said.
