S C Supreme Court Rules In Favor Of Consumer Affairs

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 statues 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 companines 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.

Futhermore, 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 states 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 a 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, 2008.

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

SCDCA Warns That Car Warranty Scams Have Not Stopped – And The Economy Makes It Worse

The South Carolina Department of Consumer Affairs (SCDCA) first warned consumers last August, 2008 to be wary of mail or pre-recorded 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 old or even older. The Department was made aware of these scams by the S C 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. Consumers shouldn’t be alarmed or pressured into purchasing an expensive “new” warranty that they may not want or need or a phony warranty that may not even exist. Consumers who have questions about their warranty should look in the owner’s manual or better yet, call their Dealer.

 Here are some red flags that 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 suppose 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 that your warranty is in peril because of the economic downturn.
• Never give out your personal financail or other sensitive information; like your bank account number or Social Security number, or even your Driver’s License number.
• 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, 1-800-922-1594 (toll-free in SC), or online at www.scconsumer.gov and click on Live Chat.

South Carolina Department Of Consumer Affairs Reminds Consumers To Check The Domain Name Before Filing Complaints Online

The South Carolina Department of Consumer Affairs reminds consumers to be sure they are using the SCDCA’s official website when filing a complaint online.

Recently, several consumers notified the Department that they had mistakenly filed their complaint with an organization whose domain name closely resembled the Department’s. Consumers should file their online complaints at www.scconsumer.gov . The other site handles complaints in a different manner than the Department. “When consumers call the Department to inquire about the status of their complaint, only to find that it was never received, they are understandably upset. Our staff responds to every complaint received, and we just want to clear up any confusion,” SCDCA Administrator, Brandolyn Thomas Pinkson, said.

While the Department handles consumer complaints against businesses, it also facilitates dialogue between the consumer and businesses in hopes of reaching a mutually agreed upon resolution. Businesses that refuse to respond to a complaint filed by a consumer with the Department may be placed on our Buyer Beware List.

In 2008 the Department returned an excess of $2.3 million to South Carolina consumers and is on pace to surpass that amount this year.

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.

SCDCA Warns Consumers To Be Wary Of Scams On Twitter

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. Scammers 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.

SCDCA 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, 1-800-922-1594, or online at www.scconsumer.gov & click on Live Chat.

S C Department Of Consumer Affairs Posts Maximum Rates Online

More than in recent history, consumers are feeling the strain of a struggling economy. With limited cash flow, maintaining credit is especially important to provide temporary relief for major and minor purchases.

While retailers and creditors are offering a variety of payment plans to help consumers, interest rates remain steep.

State law requires any business charging interest rates greater than 18 % 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 %. The listing also includes information on all car dealerships charging closing or documentation fees. Consumers may find the listing on the Department’s website or through the following link:

http://www.scconsumer.gov/licensing/mr_mvcf_list.pdf

By making this information readily available to consumers, the Department no only keeps an updated list of registered businesses, but also alerts consumers about costly interest rates before agreeing to a payment schedule. “Some purchases necessitate larger interest rates, but in any event, the consumer should know what they’re getting into before agreeing to a payment plan. Likewise, closing fees on motor vehicle purchases are another one of those costs that can sneak up on you. The consumer has a right and need to know these fees and rates ahead of time,” said Brandolyn Pinkston, SCDCA Administrator.

The list currently includes nearly 1900 businesses and dealerships that either have interest rates greater than 18 % 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.

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.

South Carolina Department Of Consumer Affairs Warns Of Consumer/Business Fraud In The Food Service Industry

The South Carolina Department of Consumer Affairs (SCDCA) has been contacted by several consumers and food service vendors warning of a scam targeted to the Food Service Industry.

An organization calling itself the South Carolina Food Service Compliance Center, operating out of a mailbox rental center in Columbia, SC is sending out mass mailings to food service locations in the state. The official looking “Compliance Alert” implies that a “new” law in South Carolina requires a sign to be posted advising employees to wash their hands. The organization further offers to provide these signs at the low cost of on $19.95 each.

This is not a new law and has been in existence for years. However, no consumer or business has to purchase the hand washing requirement signs. These signs are provided free by the SC Department of Health and Environmental Control.

This scam is a “retread” and was first reported in South Carolina in 2006. This is also a variation on a scam that Consumer Affairs warned on last year. Small businesses were targeted with mail purporting to be from the US Government requiring that OSHA signs be placed in all employee areas and they were offering to sell the signs for varying fees. While not illegal, business owners could get those signs for free.

For more information on this scam or other consumer issues, contact the Public Information Division at (803) 734-4190, 1-800-922-1594, or online @ www.scconsumer.gov & click on Live Chat.

SCDCA Warns About Class Action Lawsuit Scam

The South Carolina Department of Consumer Affairs is warning consumers not to fall for a class action lawsuit scam.

The current scams involve an unknown person or persons contacting consumers and advising them that they were involved in a class action lawsuit.

The caller tells the consumer that the lawsuit was successful and they are due several checks amounting to thousands of dollars. The caller then advises the consumer that all they have to do is pay their part of the associated legal fees or some type of tax on the money. Although, this part of the scam seems to vary, the fees due never amount to more than a few hundred dollars. Once this money is received, the caller states that the consumer’s portion of the settlement will be delivered to his or her home by a Brink’s armored carrier, or worse still – deposited straight into the consumer’s bank account.

This scam is dangerous because consumers often receive legitimate mailings about class action lawsuits, or even see news of them in print in popular magazines. The key here is that no legitimate class action suit will have persons attempting to call members of the class online. “The class action suits may involve credit card companies that charged excessive interest in the past or had the interest overpaid,” said Brandolyn Thomas Pinkston, SCDCA Administrator. These class action suits usually amount to just pennies on the dollar and the settlements are normally credited directly to the person’s account or the consumer is sent a refund check by mail. “Most importantly, consumers should know that they would never have to pay money upfront to get money,” Pinkston said. “If you’re being asked to send a fee by wire transfer or otherwise provide account information, you can be sure it’s a scam!”

Consumers receiving calls of this nature should be aware of the following red flags:

• The caller states that the “fees” have to be mailed to a postal box in Canada or sent by wire transfer.
• The scam artists use official sounding or authentic language, and attempt to lure victims by making mention of actual businesses (Brink’s armored car service) that are lefitimate and well known.
• High pressure pitches: unless consumers respond today, the settlement will be forfeited.
• Suspicious caller ID number is displayed.

This time of year people are vulnerable when they may need extra money to pay heating bills and the rising cost of food. Scam artists will be more prolific than ever. “With the current concerns about the economy, consumers need to be more suspicious than ever and report these scams to the Department of Consumer Affairs, their local law enforcement, and take advantage of Web resources, such as the Internet Crime Complaint Center, U S Postal Inspectors Service and the Federal Trade Commission,” said Pinkston.

The Internet Crime Complaint Center is online at www.ic3.gov , the Federal Trade Commission can be found at www.ftc.gov . The Web address for the U. S. Postal Inspectors Service is www.postalinspectors.uspis.gov . Two other sources of up-to-date information about scams and the most recent warnings can be found at www.fakechecks.org and www.lookstoogoodtobetrue.gov .

For more information on scams or other consumer issues, 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.

SCDCA Warns Consumers Of Callers Selling "Auto Warranty" Only Guaranteed To Steal Your Money

The Department of Consumer Affairs has received a number of calls from consumers regarding an auto warranty scam.

The consumer is told via mail or phone that the factory warranty on their vehicle has expired. Consumers are being asked for their account number and/or other sensitive information to extend the warranty.

The scam is nothing more than an attempt to steal personal information. The consumers that have notified the Department did not even have current factory warranties in the first place.

“These offers often target seniors and other car owners with postal notices and phone calls that sound so urgent,” said Brandolyn Thomas Pinkston, SCDCA Administrator. “They want to pressure you into buying an expensive car warranty – something you don’t want or need.”

Pinkston says the mailings and messages often include phrases like “motor vehicle notification,” “final notice,” or “priority level: high” to make the offer seem urgent.

Pat Wilson, Executive Vice President of the S C Automobile Association, says he has seen these notices and joins the warning to consumers. “This is happening all over the country and we are trying to find out how the pranksters are getting mailing addresses to send these cards. But, don’t let them alarm you. If you have a question about your warranty, either look in your owner’s manual or better yet, call your Dealer,” he said.

Red flags consumers shoud watch for:

• 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.
• Never give out personal, financial, or other sensitive information; like your bank account number, Social Security Number, or even your Driver’s License.
• Check to see if you already have a car warranty that is still in place.
• If your car warranty expired years ago, the warning is bogus.
• Always get information in writing, before you agree to sign up or pay any money.

Consumers who suspect they have been a victim of this scam should contact the South Carolina Department of Consumer Affairs at (803) 734-4200, or 1-800-922-1594 (toll-free in SC), or online at www.scconsumer.gov and click on Live Chat.  ï¿½

Consumer Affairs Advises – Don't Let Your TV Fade To Static

What You Need To Know About The Switch From Analog To Digital TV.

At midnight on February 17, 2009, analog television sets will fade to static as all TV signals will become digital.

While this may sound apocalyptic, the majority of Americans will barely notice. It is estimated that just 10 percent of television owners will need to make adjustments to continue using their existing set.

The first thing you should know is that you do not need a new television set. Now, if you would like to upgrade your television, by all means go ahead, but you do not have to buy a new set to receive the digital signal.

A converter box (called an ATSC tuner or ATSC receiver or HDTV tuner) is available to convert analog signals to digital. Consumers can expect a converter to cost between $50 to $75. They are available at most major retailers.

To help ease the cost for consumers the government is providing a  $40 coupon for the converter. The following should clear up any confusion about the switch from analog to digital.

Who needs to make the switch?

If you own an analog television and receive a television signal through an antenna, you will need to purchase a converter box. In simplest terms, if you enjoy free television and purchased your TV before 1998, you will need a converter box to continue watching.

Who has nothing to worry about?

If you receive cable (digital or regular) or satellite service and plan to continue to do so, you have nothing to worry about, even if your television is analog, because the signal is converted for you by your service provider.

If you own a digital television – nearly all TV sets produced since 2004 have a digital receiver – you have nothing to worry about. However, very few TV sets built before 1998 have a digital receiver.

Do I need a new TV?

No.

Do I need an HD TV?

No, no, no. High definition requires a digital receiver or converter box, but you can get a digital signal without an HD TV.

What do I need to know about the coupon?

• To receive a coupon call 1-888-388-2009 or order online at

https://www.dtv2009.gov/.

• Each household is eligible for two $40 coupons.
• Only one coupon can be used per converter box.
• Coupons expire 90 days after they’re mailed.

More questions? Complaints?

Call (888) 388-2009 or go to: https://www.dtv2009.gov/.

Identity Theft Bill Provides More Protection For Consumers

South Carolina consumers can do more to protect their identity now that the General Assembly passed and Governor Mark Sanford signed the “Financial Identity Fraud and Identity Theft Protection Act” on April 12, 2008. The Act provides much needed protection for consumers and is one of the most consumer-friendly and comprehensive bills of its kind in the nation.

A primary provision in the bill allows consumers to freeze and thaw their credit report at no charge. Any consumer may place a freeze on their report., including those wanting to take proactive measures to protect themselves against identity theives, or not wanting to receive more credit than they can financially handle.

Businesses, however, have no need to worry about consumers not being able to make purchases as they choose. Thawing your credit only takes one phone call and 15 minutes.

South Carolina is one of only two states in the country that provides this service to consumers free of charge.

The Act also provides requirements in the area of credit report disputes that are similar to those in the Federal Fair Credit Reporting Act.

Under the Financial Identity Fraud and Identity Theft Protection Act, credit reporting agencies must follow certain procedures when a consumer notifies it of an inaccurate or untimely item on their credit report. The consumer is also given the right to sue a credit reporting agency if it does not comply with the Act. This portion of the act will be effective December 31, 2008.

In addition to giving consumers more control with their credit, the bill also addresses identity theft concerns. According to the Act, organizations and businesses who maintain consumers’ personal information must now alert consumers when their personal information may have been compromised. Notice of the security breach must also be given to the Department if 1,000 or more South Carolina consumers were affected. The Department has been given the responsibility of ensuring consumers are being informed when their identity has been compromised internally or externally. This portion of the bill will be effective July 1, 2009.

The bill also requires all organizations and businesses collecting personal information to have measures for the safe disposal of material “in a manner that makes it unreadable or undecipherable.” The Department has been tasked to ensure this requirement is satisfied. This portion of the bill will also be effective July 1, 2009.

Other provisions of the Act include making identity theft a crime, prohibiting dumpster diving, putting restrictions on the use of social security numbers, and limiting the information on credit card receipts.

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