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Consumer awareness The Georgia Governor's Office of Consumer Affairs joined a group of federal, state and local government agencies and national consumer advocacy organizations to recognize the ninth annual National Consumer Protection Week, Feb. 4-10. NCPW highlights consumer education efforts in the fight against fraud in communities across the nation. Fraudulent promotions seek to exploit people's financial fantasies, needs and optimism. Informed consumers are better able to see through frauds and deceptions, whether they take the form of questionable claims in an ad, 'breathless' offers that come in the mail or email, or schemes that sound like sure-fire successes. The Governor's Office of Consumer Affairs urges Georgia consumers to take steps to protect themselves from frauds and scams in all of these areas: 1. Automotive - A lot of consumers shopping for used cars purchase vehicles that don't perform as promised or contracts that contain hidden fees or terms that the buyer was not aware of. Remember to follow these tips when shopping for a used car: + View advertising with a cautious eye and do not make assumptions. Look for fine print, asterisks, limitations or conditions to the offer. Remember: "If it sounds too good to be true, it probably is." + Take a test drive in the vehicle to check performance and make sure you like it. + Run a vehicle history report on the vehicle in question to find out the number of previous owners, odometer readings, accident and repair history, recalls and whether the vehicle was salvaged or in a flood. + Have the automobile inspected by a qualified mechanic that you trust. + Read your contract carefully. 2. Refund Anticipation Loans - Cash-strapped consumers may be attracted to the appeal of Refund Anticipation Loans offered by tax preparers, which promise to get cash in the hands of tax payers immediately, instead of waiting a couple of weeks or more for a refund from Uncle Sam. The problem is that RALs come with very high annual interest rates, ranging from about 40% to over 700% and often don't get consumers their money any faster than filing a standard claim. Consumers should avoid these high-interest loans and consider taking advantage of free e-filing through the IRS and its registered partners. 3. Home Repair Fraud - Many Georgians are hiring contractors to do home repair/home improvement work only to find that the work is done poorly or the costs exceed the agreedupon price. To avoid being taken advantage of by a disreputable contractor: + Obtain written bids from at least three different contractors. + Make sure you get a written contract that includes the scope of work to be done, the starting and completion dates, the cost of the total project and all warranties. + Ask for references and check them out. 4. Credit Repair Services - Companies that promise to erase bad credit, remove bankruptcies and bad loans from your credit report and create a new credit identity legally cannot live up to their promises. Consumers who fall prey to these false testimonies may lose hundreds or thousands of dollars without any improvement to their credit. Remember: no one can remove correct information from your credit report, even if it negatively reflects on you. 5. Debt Adjustment Companies - If you find yourself in need of debt management services there are legitimate companies who can assist you. Georgia consumers should know their rights by being aware of the laws that regulate the activities of these companies: + A debt adjuster may not charge you a fee of more than 7.5 percent of the amount you pay monthly for distribution to your creditors. + All funds received from you, minus authorized fees, must be disbursed to creditors within 30 days of receiving them. + A separate trust account must be maintained for your funds, and it must be audited annually. + Copies of these audits and proof of insurance coverage must be filed annually with the Governor's Office of Consumer Affairs. 6. Internet Scams - Technologically-savvy fraudsters are perpetrating "phishing" scams - sending unsolicited emails with links to phony web pages where consumers are asked to enter personal information such as their social security number, bank information, pin numbers, etc. Legitimate businesses should not ask you to send this type of sensitive information through email. If you doubt the legitimacy of such an email, contact the company directly rather than via the web page or links in question. Instead, use a search engine to look up the company's home page and then phone or email their headquarters offices or customer service department. 7. S w e e p s t a k e s / Lotteries - Phony lotteries and sweepstakes, many of them foreign, promise the participant that he or she has already won a prize and just needs to send in a check to pay for taxes, handling fees, etc. Sometimes the mail piece includes the sweepstakes winnings in the form of a check, which, of course, turns out to be fraudulent. It is illegal to charge someone for a prize. So, it's simple: if you are asked to send in money in order to collect winnings or a prize, then it's a scam. 8. Magazine Subscription Scams - Thousands of consumers find themselves victims of scams in which they never receive the magazines they paid for, end up paying more than they anticipated and can't cancel their contract. Be suspicious of salespeople who pressure you to buy without informing you of the total cost upfront. Don't trust offers for "free" or "prepaid" magazines that just have a "processing fee". This "fee" may end up being more than the retail price of the magazine subscription. Be wary about giving out your credit or debit card information over the phone or agreeing to automatic debiting of your account. Further protect yourself by asking questions: + How long does the subscription last? + How will I be billed and how often? + What's the total yearly cost of the magazine(s)? + What are my cancellation rights? 1. Overpayment of goods - There are a number of variations on this scam, which usually involves the purchase of an advertised good, often via an online auction. The buyer sends you a check or money order for more than the agreed-upon price and then asks you to mail or wire him funds to cover the overage. The buyer's check turns out to be counterfeit, and you are now out the value of the product shipped, as well as the money you sent him. 2. Phony Bills - Businesses can also be victims of fraud. Scammers are sending out fake bills in the hopes that they will get lumped in with legitimate bills and paid without question. Sometimes these are solicitations that are designed to look like bills, in which case the invoice may contain a required legal disclaimer that says in large bold type: "THIS IS NOT A BILL. THIS IS A SOLICITATION." You can also recognize phony bills by the conspicuous absence of a telephone number for the vendor. They may contain messages aimed at inducing pressure, such as "Past Due" or "Final Notice" and have a lot of fine print on the back of the bill. Look at bills closely to make sure that you recognize the vendor's name and that the account number and amount due match your records.
For additional information, please contact Bill Cloud, Governor's Office of Consumer Affairs, at 404- 656-3790.
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