Consumer Law

You Have to Admire the Cleverness of the Deception

By Jeff Sovern

by Jeff Sovern

The letters arrive every January and February with "Important Tax Information Enclosed" written on the envelopes.  W-2s and 1099s.  The one I'm looking at bears the return address "Processing Headquarters."  Only it's not a tax form.  When you open it up, it includes what looks like a check in the amount of $2,750.00.  At the top of the apparent check appear the words "This document has a blue background and microprinting."  But the "check" contains some small print: "Not a check."   The letter explains that the addressee has "been selected to receive a special tax related incentive of up to $2,750 . . .  ."  Unfortunately, the only "designated site" for the tax incentive program is a particular car dealership.  So much for the Processing Center return address.  The dealership promises to match the addressee's tax return check or W-2 up to $2,750 when the addressee buys a car. 

Now here's an interesting question: just how special is this offer?  Any employee who earned at least $2,750 in 2010 should have received a W-2 reflecting that fact.  The self-employed might feel left out, except that if they file a tax return of at least $2,750, they can still qualify.  Oh and by the way, this solicitation was the product of pre-screening, meaning that the dealer has to make a "firm offer."  I wonder if the requirement that the consumer submit the required documents prevents this from being a "firm offer."  Why do I feel this offers another argument about the wisdom of Congress in largely excluding car dealers from the Consumer Financial Protection Bureau's jurisdiction? 

Full post as published by CL&P Blog on March 13, 2011 (boomark / email).