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The South Carolina Department of Consumer Affairs warns consumers about a class-action lawsuit scam.
The scam involves an unknown person who calls consumers about their involvement in a class-action suit. The caller says the lawsuit was successful and the consumer is due several checks amounting to thousands of dollars... all the consumer has to do is pay their part of the associated legal fees or some type of tax on the money.
According to the caller, once this money is received, the consumer’s portion of the settlement will be delivered to his or her home by a Brink’s armored carrier or deposited straight into the consumer’s bank account.
This scam is dangerous because consumers often receive legitimate mailings about class-action suits. No legitimate class-action suit will have persons attempting to call members of the class online. “The class-action suits may involve credit card companies that charged excessive interest in the past or had the interest collection period in dispute, merchandise that was overcharged, or even a consumer loan that was overpaid,” said Brandolyn Thomas Pinkston, SCDCA Administrator. These class-action suits usually amount to just pennies on the dollar and the settlements are normally credited directly to the person’s account or the consumer is sent a refund check by mail.
Consumers receiving calls of this nature should be aware of the following red flags:
The caller says the “fees” have to be mailed to a postal box in Canada or sent by wire transfer.
The scam artists use official sounding or authentic language and attempt to lure victims by making mention of actual businesses (Brink’s armored car service) that are legitimate and well known.
High-pressure pitches: unless consumers respond today, the settlement will be forfeited.
Suspicious caller ID number is displayed.
