Consumer Affairs Alerts About Blocked Debit Card Scam

The South Carolina Department of Consumer Affairs is alerting South Carolina residents about a debit card scam targeting Midlands residents and likely spreading across the state. Consumers are receiving calls claiming their debit cards have been blocked. Consumers are instructed to respond to automated instructions to “unblock” or “re-activate” their card. Reports from consumers indicate the scam is targeting both cell phones and landlines.

The call is a scam designed to obtain sensitive bank account numbers. Consumers are urged not to answer the phone or hang up immediately if they receive a call from the following number: 520.882.7767. The number belongs to an Arizona heating and cooling company and is fraudulently being used without the company’s permission to perpetrate the scam.

Consumers receiving a call from this number should contact the Public Information Division at 803.734.4296 or toll free in SC at 1.800.922.1594, or online at www.scconsumer.gov.

Consumer Affairs Reminds South Carolinians to Prepare for Hurricane Season

Hurricane Season 2009 begins today and Palmetto State residents know they live in a hurricane-prone area. Anyone remembering 1989’s Hurricane Hugo knows that more than coastal areas are at risk. The South Carolina Department of Consumer Affairs offers residents these tips to prepare:

· Set up a disaster kit for your home. Stock up on non-perishable food and bottled water to help you and your family for up to 72 hours. Make sure you have important papers, first aid supplies, prescription medicines, and anything else you need on a daily basis in your kit.
o Make a similar kit for your car in case you need to evacuate.
o Don’t forget your pets’ needs! Pack what they need as well.

· Create an emergency plan. Know what to do if you have to evacuate. Make sure you know how to contact members of your family and have emergency contact information for someone living out of state who knows where you are in the event of an emergency.
o Make sure your pets are included in this plan.
o Offer assistance to an elderly or disabled family member of neighbor who may be alone and may need help during an emergency.

· Be informed. Know evacuation routes and listen to local authorities when asked to evacuate. Keep a weather radio, batteries, cell phone and charger handy!

· Know your risks. Whether you live in a coastal community or inland, review your insurance policies. Flooding can happen in any area after a natural disaster and most homeowners insurance does not cover flood damage.

The Department of Consumer Affairs has recently updated its Hurricane Preparedness Guide. Consumers wanting more information may call the public information division at 803.734.4296 or toll free in SC 1.800.922.1594, or online at www.scconsumer.gov.

SC SUPREME COURT RULES IN FAVOR OF CONSUMER AFFAIRS

Columbia, SC….. In an opinion delivered Tuesday, May 12, 2009, the South Carolina Supreme Court unanimously agreed with the South Carolina Department of Consumer Affairs (SCDCA). The Department appealed a decision by the Administrative Law Court regarding Lexington Law Firm based in Salt Lake City, Utah. The South Carolina Supreme Court stepped in to handle the appeal and found that the organization cannot continue to offer credit counseling services to South Carolina citizens without receiving a license from SCDCA.

The decision provided by the Court upholds the Department’s authority to enforce and administer its statutes and regulations. “The Court recognized that the licensure of individuals and organizations offering credit counseling services is central to the Consumer Credit Counseling Act. The Act itself was drafted because of abuses against consumers by some unscrupulous companies in the credit counseling/debt management industry. It’s really nice to see the Supreme Court recognize not only the importance of the Act and the licensing SCDCA provides, but also the protection consumers deserve,” said Carri Grube Lybarker, who argued the case for the Department.

Furthermore, the decision clarifies a gray area regarding who is exempt from being licensed as a credit counselor. The Consumer Credit Counseling Act does provide licensing exemptions for attorneys, banks, mortgage brokers, accountants, and certain others who offer credit counseling services during their “regular course of business.” Lexington Law Firm argued this exemption applied to them as attorneys at law. The Supreme Court disagreed holding the General Assembly intended to limit the “attorneys at law” exemption to attorneys authorized to practice law in this State when the attorney is “acting in the regular course” of his or her profession as an attorney. The Utah organization did not meet either of these requirements. The decision will be helpful as a model to other state agencies in South Carolina and across the nation, many of whom are facing the same issues.

The Consumer Credit Counseling Act, passed in 2005 by the General Assembly, is one of the strongest of its kind nationwide. Not only does it require those who offer credit counseling services to be licensed by the Department, but the Act caps the fees counselors can charge to consumers, most of whom are looking for help during financial hardship.

The Department plans to pursue the case and recover refunds for South Carolina consumers. It is unclear at this point how many consumers will receive refunds. Under the Consumer Credit Counseling Act, SCDCA has recovered more than $1.4 million for roughly 1500 consumers from July 1 2006, through June 30, 3008.

For more information on credit counseling or other consumer issues, contact the public information division at SCDCA at 803.734.4190, or toll free in South Carolina, 1.800.922.1594, or online at www.scconsumer.gov.

Car Warranty Scams Haven’t Stopped – and the Economy Makes It Worse

The South Carolina Department of Consumer Affairs (SCDCA) first warned consumers last August to be wary of mail or pre-recorded phone messages about car warranties expiring. These post card and telephone warnings directing consumers to call a toll-free number were scams. Consumers who called these numbers were often asked for a “down payment” before they could even get information about the warranty. In many cases, the automobile was 10, 15 years or even older. The Department was made aware of these scams by the SC Automobile Dealers Association as well as South Carolina consumers.

Now the scam has taken a treacherous turn. Con artists are attempting to align the scam with the economic downturn – something that is in the news daily. An alert Midlands consumer contacted the Department when she received a telephone call, supposedly from a marketing firm representing “the Big Three Insurance companies for car warranties,” warning that her Chrysler warranty would not be honored once Chrysler is in bankruptcy. The caller used high pressure tactics and told the consumer that she needed to purchase a new warranty. The red flag for this consumer? The car she currently owns is not a Chrysler.

The danger in this particular twist is that well known car manufacturers are in the news daily because of the economy. But consumers shouldn’t be alarmed or pressured into purchasing an expensive “new” warranty they may not want or need – or a phony warranty that may not even exist. Consumers having questions about their warranty should look in the owner’s manual or better yet, call their Dealer.

Red flags consumers should watch for in car warranty scams:
∑ Mailings that appear to come from your automobile manufacturer offering extended warranty coverage.
∑ Pre-recorded phone calls. Telemarketers are not supposed to use pre-recorded messages unless a live person first asks you if you want to listen to the recording.
∑ A live caller who insists your warranty is in peril because of the economic downturn.
∑ Never give out personal financial or other sensitive information like your bank account number or Social Security Number, or even your Driver’s License.
∑ If your car is older and the warranty expired years ago, the warning is bogus anyway.
∑ Always get information in writing before you agree to sign up or pay any money.

For more information on car warranty scams or other consumer issues, contact the South Carolina Department of Consumer Affairs at 803.734.4200, toll free in SC at 1.800.922.1594, or online at www.scconsumer.gov.

Fake Checks Still Cashing in on South Carolinians

The South Carolina Department of Consumer Affairs continues to receive calls and other inquiries, from banks and consumers, concerning checks that appear to be real, but turn out to be phony. Fake check scams defraud thousands each year and consumers lose an average of $5,000. Con artists are looking to gain your trust, so they are friendly and very convincing. They are especially dangerous during this economic downturn because they prey on consumers who are facing financial hardships and are hoping for a miracle.


Sample Fake Check Scams:
∑ The con artist claims to be from another country and says it’s too hard to make payment directly, so they have someone who “owes them money” mail the victim a check or even a US Postal Money Order. The amount of the check is more than owed, so the victim is instructed to deposit the check and wire the excess back, after keeping a sizable fee for their services. The check or money order is later found to be a fake and the victim is out the money they wired back to the con artist. Remember, there is no legitimate reason for someone to ask you to wire money back.

∑ You've won a lottery and receive a cashier’s check or money order. You’re asked to return some of the money to pay for taxes, legal fees or other expenses. You deposit the check into your account and it appears legitimate so you mail them a check to pay for “taxes.” A few days later, the bank calls and says the check you deposited was a fake and now you need to pay back the money. As a reminder, international checks can take 10 to 15 days or even more to clear. Another reminder: international lotteries are illegal!

Can banks tell if a check is not legitimate?
These checks look very real. Tellers receive a great deal of training on how to spot these checks, but even seasoned bank tellers may be fooled because the scammers have gotten that good.

Why does the bank allow consumers to draw on the money?
Under federal law, banks must make the funds deposited available to their customers usually within one to five days. But just because you can withdraw the money doesn’t mean the check is good, even if it’s a cashier’s check. It could be a forgery, which can take as much as two weeks to detect.

What are consumer responsibilities with checks?
Consumers are responsible for the checks they deposit, because they deal directly with the person who gave them the check. If the check bounces, the consumer owes the bank the money he or she withdrew. A bank may sue to recover the money and law enforcement may also get involved if they believe the consumer was involved in the scam.

The bottom line?
If you receive a check or Money Order from someone or some organization that you do not know, be suspicious. Check it out with the Department of Consumer Affairs. If you insist on depositing the check into your bank account, at least wait until the bank notifies you that the check has cleared or not cleared before withdrawing any money from that account.

For more information on fake check scams or other consumer issues, please contact the South Carolina Department of Consumer Affairs, 803.734.4200 or toll free in South Carolina (1.800.922.1594), or visit the SCDCA website: www.scconsumer.gov.

Twitter Scams

The South Carolina Department of Consumer Affairs warns consumers to be vigilant of scams circulating on Twitter.

Historically, from the telegraph to e-mail, con artists have quickly adapted to advancements in communication technology. Thus, it comes as no surprise that they are now targeting social networking sites such as Twitter.

Twitter is a micro blogging tool that allows users to post, in 140 characters or less, what they are doing. Scammers are utilizing the site in the same way they use spam e-mail to try to entice users.

Easy Money
These scams have been around for years in various incarnations, such as work-at-home scams, pyramid schemes, and timeshare fraud. The bottom line is the same – you lose money. Scammers post promises that you can make thousands of dollars doing little or no work. A link is included in the post, directing you to a website that has more information on this “great opportunity.” This is never legitimate. No one is ever going to post on Twitter a legal way for you to make thousands of dollars.

Phishing
In most of these schemes a user posts a link to a website masquerading as a legitimate website. The spoofed site uses any information you enter to steal your identity, hack into financial accounts, and generally wreak havoc.

One scam, specific to Twitter, involves receiving a spoofed e-mail made to appear it is from Twitter. The e-mail usually claims you need to click on an accompanying link to see a “funny” post or “great site.” The link takes you to a site spoofing Twitter’s homepage. Once you login, the scammer has your user name and password, giving them access to your account and the ability to pose as you.

How to Protect Yourself
If you are uncomfortable with a follower, block them. To do so, simply click on their user name and then click the block user box under their picture. You can also protect against unwanted followers by making your posts private.

Be very wary of users who are following a large number of people, but are not being followed back by very many people. This is an indication the user is just looking for people to spam.

Never enter personal information into a website you reached by clicking on a link in a Twitter post. Instead, if you are going to enter personal information, open a new web browser and type in what you know to be the organization’s website address.

Someone you haven’t met is never going to post about a legal, legitimate “opportunity” to make thousands of dollars with little or no work involved.

This is not meant to discourage consumers from using Twitter. It’s one of the safe sites on the Internet, and the organization has taken a very proactive approach to stamping out scams and spam.
The Department has a presence on the site and can be reached by tweeting@scdca.

For more information, contact the Public Information Division at 803.734.4203, toll free in SC at 1.800.922.1594.

More Stimulus Scams

With so much news about economic stimulus packages and the country’s economic recovery plans, consumers are hoping some of this stimulus money will funnel down to them. This is the perfect opening for con artists to try to scam the vulnerable. The South Carolina Department of Consumer Affairs (SCDCA) has received numerous reports of scams using the stimulus package – each with a different twist – to steal personal information and/or money.

One of the more brazen twists uses President Barrack Obama’s image to persuade consumers. SCDCA has received a number of forwarded emails from alert consumers who are suspicious of the offer. The mail, featuring a photograph of President Obama, promises a free stimulus check in varying amounts of from $613.27 to several thousand dollars. Consumers are directed to another link where they must “participate in the program” in order to receive the check.

Participation requires completion of several “reward offers” such as magazine subscriptions that the consumer must purchase or a credit card which can only be activated with a purchase. Although the offers themselves may or may not be real products, the consumer will have to spend money on things they possibly didn’t need, plus they will not receive a stimulus check just for participating in the program.

The Department has also received calls from consumers concerning other e-mails they have received. The e-mail claims to be from the Internal Revenue Service (IRS) and asks them for sensitive information such as a bank account number or Social Security number in order to process their portion of the stimulus package. Consumers should remember that the IRS or any other government agency will never contact you regarding rebates or refunds via e-mail. Additionally, the IRS will never ask you for personal information.

Another twist on this scam arrives by US mail and contains an actual check, again in varying amounts. Of course the check is fake, but it looks very real. The accompanying literature instructs consumers to call a toll free number for further instructions. Callers are then instructed to deposit the check but to wire a certain amount back to either enter into foreclosure rescue, or if you’re not in foreclosure, to purchase a foreclosure “kit” with instructions on how to use the stimulus money to buy foreclosed properties in your area. This scam is for the needy as well as the greedy, but it is a scam nonetheless.

Homeowners qualifying for mortgage assistance or restructuring under the housing portion of the Economic Recovery Plan may be telephone by their lender just to expedite matters, but they should verify that the caller does indeed represent that lender. Consumers are urged to contact the Department if they are suspicious of anything they receive that purports to represent stimulus money.

For more information, contact the Public Information Division at 803.734.4190, toll free in SC at 1.800.922.1594, or online at www.scconsumer.gov.

Consumer Protection Workshop Tuesday

In today’s troubled economy consumers need protection more than ever. With unemployment high, rising costs, and con artists working overtime to come up with new and clever ways to target and exploit the vulnerable, consumers need information and education in order to defend themselves against fraud and make wise choices in the marketplace.

In observance of National Consumer Protection Week (March 2 – 8), several state and federal agencies and private sector partners are offering a Consumer Protection Workshop on Tuesday, March 3, 11:30 a.m. – 4:30 p.m., at the South Carolina Department of Consumer Affairs, 3600 Forest Drive, Columbia. The workshop is free to consumers and will include a light lunch for the first 100 people to register, sponsored by Silver Nation.

The workshop will include presentations on general scams and fraud, Identity Theft and the new legislation in South Carolina, credit repair, mortgage fraud, investment basics and investment scams. Representatives from the US Postal Inspection Service, US Attorney, Federal Trade Commission, IRS, FBI, Attorney General, Lt. Governor, and the Department of Consumer Affairs will be on hand for presentations and to answer questions, as well as having informational exhibits and take home materials available.

For more information on the Consumer Protection Workshop or to register for this important conference, call 803-734-4296

Security Freeze on Credit Available Free of Charge

The recently enacted Financial Identity Fraud and Identity Theft Protection Act (FIFITPA) enables South Carolina consumers to place a security freeze on their credit report free of charge.
Placing a freeze on your credit report prevents anyone from accessing it without your permission, reducing the risk of identity theft. Freezing your credit will not affect your credit score or rating and is completely free of charge.

Consumers considering freezing their credit report will still enjoy fast access to their report. You can temporarily “thaw” or permanently remove the freeze at any time, for any reason. Access to the report must be granted by the credit reporting agency within 15 minutes of your request.
To place a freeze on your credit report, you must contact each of the credit reporting agencies by either certified mail, telephone, or through their website. The credit reporting agency has up to 10 days to provide you with a PIN that will enable you to thaw or permanently lift the freeze as necessary.

Equifax
Phone: 1-800-685-1111
Mail: Equifax Security Freeze
P.O. Box 105788
Atlanta, GA 30348
Website: www.freeze.equifax.com

Experian
Phone: 1-800-972-0322
Mail: P.O. Box 9554
Allen, TX 75013
Website: www.experian.com/freeze

Transunion
Phone: 1-888-909-8872
Mail: P.O. Box 6790
Fullterton, CA 92834
Website: https://annualcreditreport.transunion.com/fa/securityFreeze/landing

For more information about FIFITPA or credit report freezes, contact the Public Information Division at 803.734.4190, toll free in SC at 1.800.922.1594, or online at www.scconsumer.gov.

Warning About Tax Rebate Scam

Regardless of all the talk in Washington D.C., there is no stimulus check headed your way yet. And there might not be depending on what we demand from our Congressional representatives and senators.

Here's a scam warning from the Department of Consumer Affairs on the issue:
The possibility of another economic stimulus check for consumers has led to a resurgence in the tax rebate scam. The scam initially appeared a year ago when the first economic stimulus package was proposed by President George W. Bush, which included a tax rebate check for consumers. Pretending to be government officials, scammers attempted to solicit personal information, including social security and bank account numbers from consumers.

The South Carolina Department of Consumer Affairs warns consumers a new variation of this scam has been uncovered in South Carolina. The scam begins with a fake check and the promise of thousands of dollars in the form of a “secondary stimulus check” if you take the time to register. A telephone number provided for more information takes you to a pre-recorded message pitching an information packet consumers can purchase. The packet instructs consumers how to make money on “foreclosed homes.” The scammers claim you can receive thousands of dollars in regular cash payments by taking advantage of government programs related to foreclosed properties.

This is a scam. There is no second stimulus check at this time. There are no government programs that will pay you thousands of dollars to buy foreclosed properties. If you receive one of these letters or telephone calls, report it to the South Carolina Department of Consumer Affairs or destroy it. If you have already fallen prey to this scheme, please contact the Department immediately.

Consumers are reminded:

Any unsolicited check in the mail from a business, organization, lottery or sweepstake is fraudulent.

You should never give out personal information over the phone to unknown callers or businesses.

No one from the government will ever call you to verify any personal information or to “qualify” you for a stimulus check.

For more information, contact the Public Information Division at 803.734.4190, toll free in SC at 1.800.922.1594, or online at www.scconsumer.gov.

Consumer Affairs Posts Max Interest Rates

State law requires any business charging interest rates greater than 18 percent to file with the South Carolina Department of Consumer Affairs (SCDCA). In an effort to help consumers during these difficult financial times, SCDCA is taking things one step further. The Department launched a new listing online that provides information on all businesses that have filed maximum rate schedules with interest rates above 18 percent. The listing also includes information on all car dealerships charging closing or documentation fees. Consumers may find the listing on the Department’s Web site or through this link.

The list currently includes nearly 1900 businesses and dealerships that either have interest rates greater than 18 percent or charge closing fees. Businesses or dealerships that fall under one of these categories and have not filed should contact the South Carolina Department of Consumer Affairs immediately or face potential fines.