Auction Guides: Not So Hot Properties

Ads for seized cars and foreclosed homes in newspapers and magazines, on television and the Internet, and in coupon mailings to your home may sound like the ticket to your dream home or car. They offer the chance to buy a big ticket item at auction - for well below its market value. What deals! Just call the toll-free number for more information.

Is there a catch? You bet!

Don't Be Mis-Guided

If you respond, you're likely to hear pitches for guides to cars and homes being sold in your area at great prices. But the guides aren't always what they're promised to be. And if you buy one, you may end up spending more than you planned.

You'll be charged about $50 for each guide, either to your credit card or through a withdrawal from your checking account. You may even be billed for a guide you didn't order.

Here's how it happens: When you place an order, the salesperson might offer to include another guide as well. What you won't be told is that you'll be charged for the second guide, even though you never agreed to buy it.

In many cases, the businesses bill your credit card or debit your checking account even if you never agreed to buy anything. They get your bank account or credit card information under false pretenses, sometimes claiming that they need the account number to verify your credit history or to "hold" your order.

And when auction guides arrive in the mail, chances are that they contain far less information than you expected. Actually, it's information that is readily available elsewhere for free.

The bottom line: While it's possible to buy cars at auction and homes through foreclosure sales, you won't find the "deals" advertised in auction guides sold by fraudulent promoters.

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For More Information: The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.