News/Events

Arkansans risk higher costs when using refund anticipation loans as a resource to plan for a tax refund this year. Some businesses are even offering refund anticipation loans (RALs) or refund anticipation checks (RACs) to offset the costs of larger purchases, but the interest rates offered may use more of the refund than expected.

“Refund anticipation loans and checks are just that, the anticipated amount of the tax refund,” said Arkansas Attorney General Leslie Rutledge. “A tax refund could be larger than anticipated, it could also be much smaller and leave consumers on the hook for the rest of the cost of the purchase. I encourage Arkansans to practice patience and wait for the government to issue any refund.”

Attorney General Rutledge released the following considerations before agreeing to have taxes prepared as part of a refund anticipation loan:

• Free or low-cost options such as the online Internal Revenue Service (IRS)
• Electronically-filed returns can be deposited in bank accounts in as few as eight days.
• The IRS can also provide refunds by check or prepaid debit card.
• Always get a written list of fees before entering into any agreement or requesting tax preparation assistance.

RALs are high-interest loans that must be repaid by the actual tax return proceeds, essentially borrowing the buyer’s own money. If the actual tax refund amount is less than estimated, the buyer is on the hook for the difference. RACs may be attractive to some consumers because businesses often waive tax preparation fees, but many Arkansans can obtain free tax preparation services.

Many Arkansans are setting their new year’s resolutions for 2019, but scam artists also see the new year as an opportunity to take advantage of unsuspecting Arkansans. In the new year, scammers will continue to pose as someone they are not and try to steal personal and financial information, convince Arkansans they won a prize in exchange for a fee, trick consumers into believing they have debt that must be paid by gift cards, and many more variations on common scams.

“Arkansans must remain vigilant to keep their private information out of the hands of thieves,” said Arkansas Attorney General Leslie Rutledge. “Bad actors will continue to do bad deeds, but there are steps Arkansans can take to protect themselves and spot a potential scam before being victimized.”

Attorney General Rutledge released the following tips to spot a scam:

• Don’t answer a call from an unknown number.
• Wiring money is like giving cash away. There is no protection for consumers if the recipient is not who he or she claimed to be.
• Never give out personal or banking information in response to a phone, email or mail inquiry. Contact the entity requesting the information directly through a different method to verify that it is a reputable company and to confirm the request.
• When purchasing items or services online, make sure to research the seller and know his or her physical location.
• If making a charitable contribution, give to an organization that has a strong history in providing relief. Instead of paying in cash, make a check or money order payable to the organization, not an individual.
• Most importantly, if the offer sounds too good to be true, it probably is. Investigate the offer before accepting or paying any money.

LITTLE ROCK – Returning or exchanging gifts received during the holidays can be stressful and difficult if consumers do not educate themselves on company return policies before making purchases.

“An unknown and complicated return policy can spoil some of the holiday fun and hurt your pocketbook,” said Arkansas Attorney General Leslie Rutledge. “Arkansans should learn return policies prior to attempting returns. Some retailers generously allow shoppers to make returns for any reason, which can lead consumers to wrongly believe they are entitled, by law, to a full refund or credit, but that is not always the case.”

Attorney General Rutledge released the following tips for gift recipients needing to make a return or exchange this holiday season:

· Ask the merchant about the store’s return or exchange policy.

· Keep all gift and purchase receipts.

· If considering returning, do not open the box or remove the tags.

· Some online retailers allow purchases to be returned in-store, while others require the item to be shipped back. Check with the merchant ahead of time.

As a gesture of goodwill, most companies offer in-store exchanges if the customer has the receipt and the item is promptly returned. However, others have an “all sales are final” policy for deeply discounted or clearance items and do not allow returns or exchanges. Return policies not only differ from store to store but can also differ for items purchased in-store and items bought online or by mail order.

Some retailers that allow returns may charge restocking fees for certain products. Consumers can sometimes pay a fee of 10 to 25 percent of the price of the item if the package is not in the condition in which it was purchased. Meanwhile, items like computer software, CDs, DVDs and Blue-Ray discs are not generally returnable after the seal has been broken.

Retailers are not required to accept at-will returns, and even in the case of a defective product, consumers may be required to contact the manufacturer. Sometimes retailers will require consumers to deal with the product manufacturer directly, rather than simply returning the item to the place of purchase.

LITTLE ROCK – Arkansans are receiving emails threatening to detonate a bomb if a bitcoin ransom is not paid. While alarming, it appears to be another scam attempting to steal money from Arkansans. Unfortunately, this nationwide email scam has reached Arkansas, and the Attorney General’s Office has received a handful of calls regarding similar emails.

“This is a scam that uses intimidation to convince Arkansans to turn over money,” said Arkansas Attorney General Leslie Rutledge. “Arkansans should immediately contact law enforcement if they receive this email. In each report to my office, the recipient advises that the emails do not seem credible, but I encourage Arkansans to contact law enforcement immediately in order to ensure everyone’s safety.”

Attorney General Rutledge released the following tips from the National Cybersecurity and Communications Integration Center for Arkansans who receive this, or a similar, email:

• Immediately contact local law enforcement.
• Do not respond or try to contact the sender.
• Do not pay the ransom.

LITTLE ROCK – During the holiday season, scammers are targeting Arkansans who may be looking to make some extra money. These con artists often use the so-called mystery shopper scam to take Arkansans’ hard-earned money, with the promise of getting more in return.

“Mystery shopping is a legitimate opportunity that retailers use to evaluate their services,” said Arkansas Attorney General Leslie Rutledge. “Although this scam has different variations, becoming a mystery shopper does not cost anything upfront, and retailers will not contact potential mystery shoppers on an unsolicited basis. Arkansans should be wary of any organization asking for money prior to making mystery shopper work assignments and should ignore mystery shopper checks and instructions asking the consumer to deposit the money, purchase gift cards, and then send all or a portion to a third party.”