NewsBeat

18 NewsBeat December 2015 he Attorney General's office reached out to NYPA, the New York News Publishers Association, and the New York State Broadcasters Association to ask for help educating consumers about an escalating scam being perpetrated by individuals and groups offering fraudulent foreclosure rescue services. Foreclosure rescue scammers offer homeowners much-needed loan modification in exchange for a fee. Some attempt to trick the homeowner into signing over the title to their home or making monthly mortgage payments to the scammer rather than the actual mortgage holder. While the methods vary, the end result is the same: victims lose significant sums of money while ending up at further risk of losing their homes. NY AG's office asks for newspapers help with foreclosure rescue scam Scammers operate in areas with high levels of foreclosure activity. Foreclosure rescue scams disproportionately impact minority homeowners and older homeowners. Many homeowners lack and awareness of foreclosure rescue scams, how to avoid them, and where togo for assistance. The good news is that legitimate help from skilled professionals at non-profit community based organizations is available to New Yorkers at risk of foreclosure — and it is free. Newspapers can help by writing local stories about the incidence of foreclosure rescue scams in the communities they cover, and by being vigilant about not accepting advertising from scammers. T New York State Law requires that the following language and information be included in any marketing materials of advertisements produced by foreclosure rescue entities: "In New York State, housing counselors who are approved by the U.S. Dept of Housing & Urban Development or the NYS Dept of Financial Services may provide the same or similar services as a distressed property consultant, at no charge. A list of approved housing counselors can be found on the NYS Dept of Financial Services website. You should consider consulting an attorney or a government approved housing counselor before signing any legal document concerning a distressed property consultant." WASHINGTON — The long struggle between the newspaper industry and Valassis Inc., over the direct mail company's special postage discounts from the U.S. Postal Service appears to have ended with a whimper. In November, Valassis filed a report saying it had carried out no mailings eligible for the special discount. It announced it had paid an agreed $100,000 penalty to USPS last September. The tension between newspapers and its long-time insert customer began in April 2012 when the Postal Service requested a special contract rate for Valassis that was designed to pull advertising inserts out of Sunday newspapers and into a new weekend Valassis direct mail package. If the program had launched and successfully mailed 1 million qualifying mail pieces, Valassis could have earned a 22 percent to 34 percent Standard Mail postage discount. Valassis special postal deal off the table The newspaper industry fought the proposal, even taking it to the U.S. Court of Appeals. But in the end, the market ruled. Valassis announced it had launched programs in May 2013 in Atlanta, Phoenix and Washington. It reported mailing 2 million pieces in 2013, but that these were not qualifying pieces under the rules of the contract agreement. There were no mailings in 2014 or 2015. NNA President Chip Hutcheson, publisher of the Princeton (KY) Times-Leader, said the $100,000 fine was a fitting end to an unfortunate chapter. "We want to think of this whole experience as an episode of recession fever at the Postal Service. They were facing grim markets, as we all were, and USPS was grasping at straws. The fever ignited this idea of picking winners and losers in the advertising marketplace for the sake of maybe getting in some new mail volume. We at NNA didn't think it would work, and it didn't. So USPS got $100,000, and spent unreported thousands in lawyers and analysts' time. The newspaper industry and Valassis spent heavily to advance their various viewpoints. And in the end, there was no new mail. Newspapers were undoubtedly hurt in those test markets and Valassis couldn't come up with the advertisers. "There is a moral to this story that every parent knows: don't play favorites in the family. No good comes of it. We are glad this chapter is over and we intend to continue to work with Valassis to develop its markets and with USPS to improve the mail. Money is tight. We need to plant our seeds where they can grow." By TONDA F. RUSH — Chief Executive Officer and general counsel, NNA

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