Attorney general’s office educates crowd on scams

With a goal of educating and empowering Arizonans to be aware of consumer fraud, Wendy Cevallos of Attorney General Terry Goddard's office spoke at the Joyner-Green Valley Library about four of the top 10 consumer scams.

The old adage, “If it's too good to be true, it probably is” is still a truism consumers should live by.

Goddard's two-year program focusing on Identity Theft and consumer fraud has been effective in educating consumers, and 26 satellite offices manned by volunteers throughout the state have helped victims of fraud get information and file complaints.

Cevallos urges consumers to take their time when making decisions that involve costly items such as purchasing a new or used car or applying for a loan. “Good businesses give you time to make decisions; bad business rush you,” she said.

The safest way to pay is with a credit card. Cevallos said that because debit cards are linked directly to one's bank account it is a riskier form of payment.

The four scams in the Top 10 she focused on four were identity theft, predatory lending, new and used car buying and telemarketing rip-offs.

Buyer be careful

Cevallos strongly suggests that if a Social Security number appears on a driver's license or other card in one's wallet that the Social Security number, or card, be removed. “It's a gold mine for thieves,” she said. Everyone should get an annual credit report; there is no charge for reports of one's credit history but there is a charge to find out one's credit score. The three credit reporting companies are TransUnion, Equifax and Experian.

Free copies of a credit report are available annually at www.annualcreditreport.com. The web site, www.freecreditreport.com, is not free, Cevallos said.

High-cost loans, referred to as Predatory Lending, is high on the attorney general's list of crackdowns. Cevallos said high interest rates profit the lender with no benefit to the borrower,. She advises extreme caution if a lender rushes a consumer into signing papers or if a lender encourages a consumer to “pad” their income to qualify for a loan.

When buying a used car the potential buyer can-and should-request a history report on the vehicle. Before shopping for either a new or used car, Cevallos said, the buyer should have financing in place from their bank or credit union. “Financing (direct from a car dealer) benefits the dealer,” she said, which may lead to stronger sales tactics.

Arizona's Lemon Law for new cars is for two years or 24,000 miles, which ever is earlier; for used cars it's 15 days or 500 miles, which ever is earlier, so it's buyer be careful. For further information contact a satellite office or the attorney general's office.

The last of the top four scams to be aware of is telemarketing rip-offs. Phone calls urging a consumer to “act now and get a free gift,” send money or give a credit card or bank account number is a definite red flag.

Slick telemarketers are smooth talkers who can make a consumer believe the call is from a bank representative who wants to verify certain account information.

Called “phishing” because the scammers are phishing for bank account or Social Security numbers, consumers should ask for the caller's phone number and call back or simply hang up.

The attorney general's office vigorously enforces consumer fraud laws and his recent “Fraud Fighters” program is aimed at educating citizens about potential scams and how to avoid being a victim.

Although the attorney general does not have the legal authority to represent individual consumers, representatives in his office will look into every complaint.

The 2007 edition of Top 10 Consumer Scams will be available in about one month. It offers protection tips and “red flags” consumers should be aware of.

For further information: 520-628-6504, 1-800-352-8431 or www.azag.gov

Ellen Sussman is a freelance writer for the Green Valley News.