Attorney General Alerts

It is the Attorney General Calling…or is it?
Thu, Mar 26, 2015Unsolicited telephone calls can be annoying to Arkansas consumers, especially if the calls are from a business or marketing company trying to sell products or services that consumers do not want or need.
But what about when the telephone rings and it appears to be someone calling from a state agency, or even the Attorney General’s Office. Often times, consumers will listen and seek to comply with whatever the state agency needs from them.
Recently, the Attorney General’s Office has learned that scamming debt collectors are posing as the very state agencies that go after them, including the Attorney General’s Office.
Arkansas Attorney General Leslie Rutledge issued today’s consumer alert to warn Arkansans about this new scam and to offer tips on how best to avoid falling victim.
“As the State’s chief consumer advocate, this scam which claims my office is after consumers is extremely disturbing,” said Attorney General Rutledge. “If an Arkansan receives one of these types of calls and they are suspicious of what they are being asked to do, then hang up and make a call directly to the Attorney General’s Office at (800) 482-8982 or state agency to verify the validity of the request. The Attorney General’s Office would never make such a call.”
Consumers should not be fooled into sending money to these threatening con artists or providing them with any personal or financial information such as Social Security numbers, credit card numbers or bank account information. Receiving an uninitiated phone call that demands any of this information should immediately raise red flags.
Consumers should keep the following tips in mind to avoid this scam:
- The Attorney General, the congressional delegation, law enforcement or any federal or state agency do not work on behalf of third-party collectors or threaten arrest for unpaid debts.
- None of the abovementioned agencies seek or accept a prepaid debit card or wire transfer.
- If a consumer owes money, legitimate collectors must send a written validation notice.
- Do not confirm or provide personal or financial information over the phone or Internet.
Keep in mind that con artists do not follow the law anyway, so they disregard the do not call registry regularly. Technological advances allow for Caller ID spoofing, so that scammers can disguise the source of the call to evade prosecution.
When answering a suspicious, unwanted call, consumers should write down as much information as they can about the caller, including the name of the person calling, where they purport to be calling from and the phone number. Then, consumers should notify the Attorney General’s Office if they believe themselves to be victims of a scam.
The Attorney General’s Consumer Protection Hotline is (800) 482-8982, or consumers may visit the Attorney General’s website at www.ArkansasAG.gov.
To report violations to the Federal Trade Commission visit www.ftccomplaintassistant.gov or call (888) 225-5322.
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What does the FOIA mean for you?
Thu, Mar 19, 2015As taxpayers who support governmental entities, Arkansans have a right to review an array of records at every level of government – state and local – and to attend the meetings of policy makers and private organizations that receive public funds and are intertwined with government.
That right is provided by the Arkansas Freedom of Information Act (FOIA), a law enacted by the General Assembly in 1967 after a strong push from a coalition of citizens and journalists and with the support of then-Gov. Winthrop Rockefeller. The bill passed the House and Senate without a dissenting vote. Governor Rockefeller later reflected that passage of the FOIA was one of the most significant achievements of his time in office.
Months later, in a landmark decision, the Arkansas Supreme Court was faced with interpreting the FOIA after a court challenge. In its opinion, the Court said: “We have no hesitation in asserting our conviction that the Freedom of Information Act was passed wholly in the public interest and is to be liberally interpreted to the end that its praiseworthy purposes may be achieved.”
The FOIA allows for access to most public records and meetings. The state’s FOIA, a law that is highly regarded across the United States as one of the strongest and most comprehensive, gains greater attention during National Sunshine Week. The annual week in mid-March works to highlight the importance of open and transparent government.
Arkansas Attorney General Leslie Rutledge issued today’s consumer alert in recognition of National Sunshine Week and to give consumers a greater understanding of the Arkansas FOIA.
“In Arkansas and across the country, the people must be armed with the power of knowledge and encouraged to be active, informed citizens,” said Attorney General Rutledge. “Arkansas has a strong FOIA that helps hold the government accountable and inform citizens about the issues that affect them. As the people’s lawyer, the Attorney General’s Office is committed to protecting the democratic ideal of an open and public government through the FOIA.”
For consumers seeking to gain a greater understanding of the Arkansas FOIA, the Attorney General’s Office joins with a number of other organizations to produce and distribute the Arkansas Freedom of Information Handbook. Print copies of the handbook are available upon request from the Attorney General’s Office and electronic copies of the handbook are available on the Attorney General’s website by visiting http://arkansasag.gov/media-center/foia/.
The FOIA gives the public access to public meetings and public records with some exceptions. The Act defines a public record as essentially any writing, sound or video that is kept and reflects the performance or lack of performance of an official function. Some public records are exempt from disclosure, such as personnel records whose disclosure would constitute a clearly unwarranted invasion of person privacy, or those records that are kept as part of an ongoing criminal investigation.
Requests for records may be made in person or by phone, but most requests are submitted in writing to the custodian of the records. Since most documents fall into the category of being in “active use” or in “storage,” most entities have up to three business days to produce the information requested.
Arkansans also have the right under the FOIA to attend most meetings of governing bodies. Notice of public meetings must be provided to anyone who has asked to be notified, and notice of special meetings must be provided to members of the news media who have requested notice of such meetings. Governing bodies may only enter into closed sessions for a limited number of reasons, one of which is for the purpose of considering employment, appointment, promotion, demotion, disciplining or resignation of an individual officer or employee.
Consumers who want to learn more about the FOIA can contact the Arkansas Attorney General’s Office at (800) 482-8982 or visit http://arkansasag.gov/media-center/foia/.
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Avoid Getting Swept Away in Fake Sweepstakes
Wed, Mar 11, 2015Consumer answers their phone and a stranger immediately says, “Congratulations, you are a winner.” Over the past several weeks, reports of these types of calls have increased. Arkansans are being targeted by con artists posing as representatives of sweepstakes companies promising cash prizes.
Every year, thousands of Arkansans are notified by mail, e-mail, or phone, that they are winners in a sweepstakes or lottery. These million dollar prize packages or new cars can be tempting, but Arkansans should resist. These scammers usually ask for a “processing fee” related to the prize but it is a ruse to pocket the “fee” and steal financial information.
Arkansas Attorney General Leslie Rutledge issued today’s consumer alert on this common scam to caution Arkansans not to fall victim to these sweepstakes con artists.
“Con artists are looking for quick and easy ways to steal consumers’ money,” said Attorney General Rutledge. “What better way to do that than to convince consumers that they have won a big sweepstakes prize and need to pay a small fee to receive it? Arkansans should always remember that if they have not entered a sweepstakes competition or lottery it is highly unlikely that they are indeed a legitimate winner.”
Callers to the Attorney General’s Office are reporting receiving unsolicited phone calls from an individual claiming to be with Publishers Clearinghouse, a well-known sweepstakes company to most Americans. These callers are promising that consumers are winners and that if they pay a one-time fee, a representative of Publishers Clearinghouse will be on the way to present the consumer with their “winnings.” Most of the time these “winnings” are described as cash, but sometimes are a car or vacation package. Almost all of these calls request the consumer to wire money to a location outside the United States or provide the scammer with the number of a prepaid debit card.
By indicating that the “winnings” are ready to be delivered, these con artists can sound legitimate, but it is highly unlikely that the scammer knows the consumer’s location.
Legitimate sweepstakes or lottery winners are hardly ever notified through an unsolicited call, and legitimate businesses, such as Publishers Clearinghouse, would never require winners to wire money to receive a prize.
Regardless of how the consumer is notified, once the consumer turns over bank account information or wires the funds, there is a good chance the consumer will lose more money when their personal financial information is compromised. When money is wired to a foreign country, it is very difficult, if not almost impossible, to get it returned.
Attorney General Rutledge offers the following tips to consumers to avoid falling victim to sweepstakes scams:
- Consumers should not try to collect winnings from a sweepstakes they don’t remember entering.
- Never give out personal financial information.
- Do not pay any money up front in an attempt to claim a prize.
- Always remember, if it looks or seems too good to be true, it most likely is.
Consumers should ignore the bogus sweepstakes prizes and immediately call the Attorney General’s Consumer Protection Division to report the call and the number from which it originated. Consumers can contact the office via the Consumer Protection hotline at (800) 482-8982 or by visiting www.ArkansasAG.gov.
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Don’t Double-Down on Tax Debt
Wed, Feb 25, 2015In many cases, tax-relief companies know when they contact consumers who owe taxes, that these consumers are desperate to find ways to settle their tax debt with the Internal Revenue Service (IRS) or the State of Arkansas.
Tax-relief companies often claim they can reduce or even eliminate an individual’s tax debts and stop the collection of back taxes by applying for legitimate IRS hardship programs. The tax-relief companies don’t usually settle the tax debt and, in many cases, don’t even send the necessary paperwork to the IRS.
Arkansas Attorney General Leslie Rutledge issued today’s consumer alert to caution Arkansans to avoid falling victim to promises that they are “eligible” for tax relief, and to inform consumers of tax relief programs offered by the IRS.
“Don’t panic. That’s the most important thing consumers should remember if they have tax debt,” said Attorney General Rutledge. “The IRS has tax-relief programs to help Arkansans who owe back taxes or are behind on their payments, but consumers have to communicate with the IRS, otherwise, penalties and interest will accrue.”
Consumers should view paying taxes just like paying other bills. It is often better to negotiate a payment plan with the creditor than to pay someone else to finalize those details. The same is true when back taxes are owed to the IRS or the State.
Consumers who are having trouble meeting their tax obligation should avoid the following:
- Companies that make promises that consumers are “eligible” or “qualified” for a tax-relief program. Only the IRS can make that determination.
- Programs that won’t allow for in-person meetings before discussing payment.
- Any program that asks for upfront fees or advance fees.
- Any program promising results that seem too good to be true. As with paying any debts, programs that offer massive reductions from a total bill, should raise a red flag.
The IRS offers the following tax-relief programs to help consumers who owe taxes:
- An Installment Agreement is generally available to people who can’t pay their tax debt in full at one time. The program allows taxpayers to make smaller monthly payments until the entire debt is satisfied.
- An Offer in Compromise (OIC) lets taxpayers permanently settle their tax debt for less than the amount they owe. The OIC is an important tool to help taxpayers in limited circumstances. Taxpayers are eligible only after other payment options have been exhausted and their ability to pay has been reviewed by the IRS.
- In very limited circumstances, the IRS may offer penalty abatement to consumers who haven’t paid their taxes because of an unusual hardship. If the taxpayer meets very narrow criteria, the IRS may agree to forgive the penalties. Interest abatement is even more limited and is rarely provided.
According to the IRS, Arkansans can apply for an Installment Agreement, OIC, or penalty interest abatement without the help of a third party. If third-party assistance is preferred in negotiating with the IRS, only certain tax professionals — Enrolled Agents (federally-authorized tax practitioners who can represent taxpayers before all administrative levels of the IRS), Certified Public Accountants (CPAs), and attorneys — have the authority to represent taxpayers. Their services should involve a face-to-face meeting where they explain all options and their fee structure.
The Taxpayer Advocate Service is an independent organization within the IRS that provides free help to people who are experiencing financial difficulties or who need help resolving a problem with the IRS. Call (877) 777-4778 or visit www.irs.gov/advocate.
For more information about this and other consumer issues, visit the Attorney General’s website at www.ArkansasAG.gov or call the office’s Consumer Hotline at (800) 482-8982.