EDITOR’S NOTE: In recent weeks the Banner-News has received numerous calls from readers throughout the county relating various scams they have been presented with. This series of articles details the most prominent types of scams, with information drawn from the Arkansas Attorney General’s Office website.
Local law enforcement officials have issued repeated warnings of various scams making the rounds in the Magnolia/Columbia County area. The Banner-News reminds everyone to be extremely wary and cautious of strangers or anyone else seeking personal or financial information - whether in person, by mail, email, or telephone contact. Citizens are urged to never give out banking or financial information to anyone.
Most importantly, always remember the old adage “if the offer sounds too good to be true, it probably is.”
Consumers conduct business transactions every day. We buy merchandise, shop at stores, use our telephones, and pay bills. These transactions, more often than not, take place with legitimate businesses and without problems.
Pure scam artists are a different story. They connive and swindle consumers to make a quick profit. Consumers must be vigilant and cautious when presented with an offer that sounds too good to be true.
Today’s installment discusses illegitimate payday loan collectors and tech support scams.
Illegitimate payday loan collector
For a number of years, the Attorney General’s office has worked to eliminate all forms of payday lending in Arkansas. Payday lending is the practice of extending short-term loans at high annual percentage rates. It also includes so-called “installment” loans with longer terms, which carry high interest rates.
Though all storefront payday loan operations in Arkansas have been shut down, these usurious loans are still available on the internet. Most online payday lenders have “roll-over” provisions that direct most, if not all, of a debtor’s payments toward loan fees without reducing the amount borrowed.
How to spot a payday loan:
•High interest rate: Payday loans typically carry triple-digit interest rates or high fees, even if the fees are not called “interest.”
•Short terms: Typically, a payday loan is payable within two weeks to one month.
•Direct bank account access: Payday lenders usually require information about the borrower’s bank account, either through a check written to the lender or through electronic access.
Consumers should consider alternatives to payday loans. Contact creditors to request extensions on due dates. Seek the financial assistance of family or friends. Remember, a borrower typically pays more than $800 to retire a $300 payday loan. Ultimately, you will spend most of your money on interest payments.
If you would like to file a consumer complaint against a payday lender or a payday loan debt collector, submit an online complaint to the Consumer Protection Division or call (800) 482-8982.
Some payday lenders, or related collection agencies, use harassing and abusive collection tactics. If this happens to you, you can file a complaint with the AG’s office. Also you should be aware of your rights under the Fair Debt Collection Practices Act.
Tech support scam
“Your computer is damaged … we’ll help you fix it.”
It’s the latest twist on tech support scams: Scammers sell software online that claims to increase your computer’s performance. They lure you to their websites with pop-up ads or web searches. Then, they tell you to call a phone number to activate or register the software. On the phone, they ask for remote access to your computer and then tell you that your computer has many errors that need to be fixed immediately.
It’s all part of their plan to sell you bogus “security” or “technical support” products or services. Really, your computer is fine. They want to charge you – possibly hundreds of dollars – for software and services that you don’t need and that doesn’t help.
What can you do to avoid similar tech support scams?
•Don’t give control of your computer to someone who says they need to activate software. Instead, look carefully at the software instructions to learn how to activate the software yourself.
•Don’t give control of your computer to someone who calls you out of the blue claiming to be from tech support. Instead, hang up and call the company at a number you know to be correct.
•Never provide your credit card information, financial information, or passwords to someone who claims to be from tech support.
•Learn how to protect your computer from malware.
What if you think you might be a victim of one of these tech support scams?
•If you paid for bogus tech support services or software with a credit card, then call your credit card company to reverse the charges.
•If you think someone may have accessed your personal or financial information, then learn more about how to lower your risk for identity theft.
•Get rid of malware that the fraudsters may have installed. Download legitimate security software and delete anything that it finds as a problem.
•Change any passwords that you gave out. If you use the same passwords for other accounts, then change those too.
If you think you may be a victim of a tech support scam, contact the Attorney General’s Office or the Federal Trade Commission.
Watch the Banner-News for the final installment of “Scams Take on a Variety of Forms.”
story text created on Wednesday 8/3/2016 at 9:58:30 am by D Edington