South Carolina Department Of Consumer Affairs Issues A Critical Warning Regarding A Tax Rebate Scam

President Bush’s recent economic stimulus package worth roughly $150 billion, or one percent of the gross domestic product in the country, hopes to stop a nationwide slump. The president continues to express confidence in an economic rebound, but says he hopes the proposal will increase consumer spending. The proposed package translates into one-time tax rebates of up to $800 for individuals and $1,600 for married couples. Although it has not been signed into law yet, the proposal has many consumers excited about a few extra dollars this tax season.

Sadly, consumers are not the only ones trying to capitalize on the additional cash flow. Scammers are using the president’s proposal to dupe consumers out of their rebate before the measure even passes.

Since the proposal was presented to Congress on Friday, January 18, 2008, the South Carolina Department of Consumer Affairs has received multiple reports of a tax rebate scam. A scammer calls a consumer and requests personal information in order to automatically deposit the consumer’s additional rebate under President Bush’s economic stimulus package. Consumers are asked for a bank account number in order to deposit the money directly into their account.

The White House proposal, however, is just that- a proposal.

• The tax relief measure has not been passed.
• The rebates have not been issued.
• An agency has not been commissioned to collect information so automatic deposits can be processed.
• Even when the tax relief proposal is passed, consumers will not be contacted and asked for sensitive information.
• The IRS or Social Security Administration will not ask for your social security number or bank account. They already have that information.

Any consumer being asked for personal or financial information in order to receive this additional rebate can assume it is a fraudulent call. Consumers may call the South Carolina Department of Consumer Affais to report incidents of fraud. If you have already fallen prey to this scheme and given out your bank account number over the phone, please call your bank immediately!

For more information, contact the Public Information Division at (803) 734-1594, or online at www.scconsumer.gov and click on Live Chat.

Facts About SCDCA (Part 10)

http://www.scconsumer.gov/consumer_education.htm

Did You Know We Provide Consumer Education?

The South Carolina Department of Consumer Affairs

• Utilizes workshops,
• Speeches and
• Media Presentations

to provide consumer education assistance to a wide cross-section of South Carolina.

The Department’s educational activities continued to focus on a theme of “preventive consumerism” on such subjects as how to avoid frauds and schemes, healthy skepticism, effective consumer practices in handling consumer transactions ranging from automobile repairs to mail order purchases, coping with marketplace practices and communicating more effectively with businesses in the resolution of complaints and problems arising out of consumer purchases of goods and services.

Educational Programs are directed towards students and teachers K-12 and college levels as well as health institutions, churches, educational programs, senior citizens groups, etc.

Listed below are our programs:

• LifeSmarts  http://www.scconsumer.gov/education/lifesmarts.htm
• Smart Kids
• Junior Consumer Program
• Word Search Game # 1  http://www.scconsumer.gov/education/word_search.HTM
• Word Search Game # 2  http://www.scconsumer.gov/education/word_search_2.htm
• Insurance Fraud Essay Competition  http://www.scconsumer.gov/education/insurance-essay-contest.pdf
• Speaker’s Bureau-If you are interested in someone coming out to speak at one of your functions you can contact Donna DeMichael at (803) 734-4214 or e-mail her at demike@dca.state.sc.us .  http://www.scconsumer.gov/education/speaker_bureau.htm
• Related Links
• Brochure Order Form  http://www.scconsumer.gov/publications/brochure_order_form.pdf

South Carolina Department of Consumer Affairs Presents: SHRED DAY – COLUMBIA

 Consumer Affairs to Sponsor SHRED DAY at Two Midlands Locations.

 A free public service for South Carolina consumers.

Dispose of your sensitive documents the right way. Be safe and protect yourself from Identity Theft.

WHEN:     Thursday, January 17, 2008

WHERE:   Department of Consumer Affairs at 3600 Forest     

 Drive in Columbia (@ Beltline Boulevard)

AND 

                 Seven Oaks Presbyterian Church at 530 St. Andrews Road in Irmo

 TIME:      8:00 am – 12:00 pm and 2:00 pm – 6:00 pm

LIMIT:     4 boxes or bags-paper materials only

NOTE:       This event is sponsored solely by the South Carolina

                      Department of Consumer Affairs and Shred 360.

                     All Media outlets will receive equal access and  opportunity.

For more information, contact the Public Information Division at (803) 922-1594, or online at www.scconsumer.gov and click on Live Chat.

 

Consumer Affairs Warns About Envelope Stuffing Scam

The South Carolina Department of Consumer Affairs (SCDCA) is warning consumers about an old con game that is making a comeback across the state.

SCDCA recently learned about an Arkansas company that is sending out mailings to South Carolina consumers offering them big bucks in return for stuffing envelopes. The company previously targeted Indiana consumers before facing a 2005 lawsuit. Nevertheless, the company maintained their pre-recorded phone messages and operating system. They are now back in business targeting South Carolinians even though an Arkansas court ruled as recently as April 2007, that the company violated the Arkansas Deceptive Trade Practices Act 1,262 times and fined them $1.3 million.

Envelope stuffing is a something-for-nothing scam. Participants are asked to send in a registration fee. Upon receiving the fee, the company will send the consumer mailers and envelopes to stuff and seal. The individual will be guaranteed a small amount for each stuffed envelope that meets company standards. Not surprisingly, an envelope will rarely, if ever, meet “company standards.” The individual does not get paid, but his does not stop the company from sending out the envelopes. In essence, the company gets consumers to promote their scheme for “free,” and also pockets the initial fee.

For more information, contact the Public Information Division at (803) 734-4190, 1-800-922-1594 (toll-free in SC), or online at www.scconsumer.gov & click on Live Chat.