News/Events

LITTLE ROCK – Consumers should be on the alert for door-to-door sales people using scare tactics to sell home alarm systems. The Attorney General’s Office receives complaints against home alarm systems and monitoring services for violations of the Home Solicitations Sales Act, including high pressure sales, misrepresentations of products, failure to provide a copy of the contract and others.

“Arkansas law provides specific protections for consumers purchasing items from a door-to-door salesperson,” said Arkansas Attorney General Leslie Rutledge. “My office is here to protect consumers with education and awareness. At times, this requires legal action to respond to bad actors trying to take advantage of Arkansans.”

Attorney General Rutledge provided the below tips for consumers to help spot an unscrupulous door-to-door salesperson:

• Consumers have a right to review the contract outside the presence of the sales agent, and cancel the contract without obligation within three days of the home solicitation sale. The sales agent must provide the consumer written notice of this right to cancel along with the proposed contract.
• High-pressure tactics are rarely employed by companies whose business depends on providing quality customer service. A legitimate company will allow consumers to weigh options and will review the system details and notification procedures.
• The solicitor may suggest the existing security system needs an “upgrade,” when the salesperson actually represents a different company. This may lead a homeowner to believe the system must be “upgraded” just to remain reliable.
• The salesperson offers “free installation.” The homeowner may think it is a bargain, but many “free installation” offers are coupled with long-term, high-cost monitoring contracts. In the long run, the “free” offer may be the most expensive of all.

Arkansans who may have been victimized by these practices are encouraged to contact the Public Protection Department of the Attorney General’s Office.

LITTLE ROCK – Scammers are dusting off the IRS scam and intimidating Arkansans once again by trying to convince innocent consumers that they owe back taxes that must be paid immediately. Consumers have recently been contacting the Attorney General’s office reporting that the scammers are spoofing phone numbers and posing as the IRS.

“Scammers continually use new strategies to frighten Arkansans,” said Attorney General Leslie Rutledge. “There are various versions of this scam. Consumers should know that the IRS may send multiple letters, but will never make threatening phone calls.”

The IRS continues to remind consumers that these scam calls are recognizable and that the agency will not do the following:

• Call demanding immediate payment. The IRS will not call if taxes are owed without first sending a bill in the mail.
• Demand that taxes are paid without providing the individual the opportunity to question or appeal the amount owed.
• Require a specific form of tax payment. For example, the IRS will not demand payment by prepaid debit card.
• Ask consumers for credit or debit card numbers over the phone.
• Threaten to bring in police or other agencies to make an arrest for not paying taxes.

LITTLE ROCK – Many college students take out loans to help pay for higher education, but scammers prey on those in debt with student loan forgiveness “programs.” Scammers will pose as government agencies offering to help with complicated federal student loan debt or claim to be independent organizations that are aware of new changes in repayment programs. But offers that do not come from an assigned federal loan servicer are a scam.

“Student loan debt can be intimidating,” said Arkansas Attorney General Leslie Rutledge. “Con artists often make unrealistic promises, such as drastically reducing or doing away with monthly payments altogether. While this may seem attractive at first, it can be detrimental in the long run, accumulating interest and potentially sliding into default. Some of these scammers will even charge for their assistance.”

Attorney General Rutledge released the following red flags of a student loan forgiveness scam:

• Borrowers are instructed to stop paying on the loans
• Borrowers are offered a promise of guaranteed reduced payments and/or loan forgiveness
• The scammer requests Federal Student Aid username or passwords (FSA ID)
• Borrowers are instructed to ignore letters or emails from a federal loan servicer
• The scammer stressed the difficulty for the average person to navigate the Federal Student Aid system

If Arkansans believe they have been a victim of one of these companies, they should contact the federal loan service and update account information by changing all passwords and cancel any automatic withdrawal payments.

LITTLE ROCK – Many young adults entering college or the workforce feel the pressure of looming bills and turn to credit cards to cover the initial costs but end up paying exorbitant rates long-term. Understanding that credit cards are not free and will only alleviate temporary financial burdens is an important concept for newly independent students. Accumulating credit card debt is avoidable; unfortunately, new users often fall victim to debt that hurts their ability to invest in personal pursuits like obtaining home loans and other financing in later years.

“Credit cards can be helpful but new users may not be fully aware of the costly terms and conditions,” says Arkansas Attorney General Leslie Rutledge. “Forgetting to make a payment or exceeding a card’s limit can be devastating to a consumer’s credit score, having a detrimental impact on long-term plans to buy a house or car.”

As preventative strategies to young adults interested in applying for a credit card, Rutledge offers this advice when using a card:

• Submit payments on time. Making regular payments is the best way to improve a credit score and qualify for less expensive credit.
• Pay the whole balance owed if possible. Although it may seem easier to pay the minimum, doing so costs more in the long run, and it will take much longer to pay off the debt.
• Do not “max out” a credit card. Charging the full credit limit is risky, and it will affect a consumer’s credit score.
• Do not respond to every tempting credit card offer. Using too much credit could lead to having uncontrollable debt.
• Read the fine print as some credit cards include expensive annual fees and higher interest rates in exchange for incentives like airline miles and bonus points. Some credit cards offer other services such as lower annual percentage rates, insurance and other items at no cost.

To protect college students from coercive credit card companies and debt, the Arkansas General Assembly enacted legislation in 1999 that restricts the practice of marketing credit cards on college campuses.

College students are further protected by the Credit Card Accountability Responsibility and Disclosure Act, which restricts the marketing of credit cards on campuses nationwide. The advertisement of credit card within 1,000 feet of a college campus or university event is prohibited. In addition, consumers under the age of 21 are required to include a parent’s signature, further binding the parent or guardian to repay debt incurred by the account. Credit card companies are also forbidden from using gifts as a form of persuasion to bribe younger consumers into applying for a card.

LITTLE ROCK – Parents across Arkansas have been gearing up and saving money for back-to-school shopping, but supplies and clothes can be expensive, especially if parents do not take the time to price shop. From school supplies, to new gadgets and clothes, money quickly adds up.

“Back-to-school shopping can be stressful and financially straining for Arkansans,” said Arkansas Attorney General Leslie Rutledge. “But taking the time to compare prices, taking advantage of the best deals and only buying the necessities can save a lot of money.”

Attorney General Rutledge released the following tips for parents who are back-to-school shopping:

• Stick to the teacher-approved school supply list. Do not waste time and money on unlisted, impulse items that may never be used.
• Research prices ahead of time. Use price comparison apps or websites to check best available prices in real time. Or shop end-of-summer sales. Also consider that many stores will price-match better deals from other retailers.
• Check school supply deals at supermarkets and scope out the office supply items before going to the back-to-school section. More items could be in stock for a better price.
• For larger, more expensive items like sports equipment, electronics or musical instruments, consider buying used or refurbished.
• Ask about and understand a store’s return policy, and recognize sometimes a box cannot be returned once it is opened.
• If shopping online, only purchase items on a secure website. Determine whether a website is secure by looking for a “lock” icon in a browser’s status bar and the letters “https” at the start of the website’s URL.
• Consider paying for online purchases with a credit card. Consumers are allowed under federal law to dispute those charges and cardholders may have no liability if a card is stolen fraudulently and used.

Some providers and companies offer student discounts on wireless service, cell phones, tablets and other electronics. Check with the provider to determine available discounts.

Arkansas’s sales tax holiday, which suspends state and local tax on certain school supplies and clothing, is Aug. 4 and 5.

According to the National Retail Federation, families spent nearly $84 billion in back-to-school and back-to-college spending last year. Meanwhile, they estimate $685 in spending per child in grades K-12.