ATTORNEY GENERAL TOM HORNE ANNOUNCES COMPLAINT FOR INJUNCTION AGAINST SMOKE FREELY, LLC

PHOENIX (Wednesday March 9, 2011) -- Attorney General Tom Horne today filed a complaint in Pima County Superior Court for injunctive relief, restitution and civil penalties against Smoke Freely, LLC, an Arizona limited liability corporation. Smoke Freely offers Prado Electronic Cigarettes (“Prado E-Cig”) for sale. An Electronic Cigarette or “E-Cig” is a battery-powered device that can provide inhaled doses of nicotine by delivering a vaporized solution. Professional Marketing Associates, Inc. (“PMA”), a Massachusetts corporation, provides fulfillment services for Smoke Freely and responded to consumer complaints forwarded to Smoke Freely by our office.

While Smoke Freely states its merchandise is not a smoking cessation device, PMA represents that the Prado E-Cig “is an electronic cigarette used as a smoking cessation device.” The Prado E-Cig has not been approved by the FDA as a smoking cessation device.

Defendants also make misrepresentations about their “Risk Free Trial.” Defendants represent to consumers that consumers can pay shipping & handling and try a Prado E-Cig for free. Defendants also represent that consumers can return the Prado E-Cig within the trial period and not be charged anything more than the shipping & handling charge. In reality, some consumers do not receive the Prado E-Cig before the trial period expires, other consumers are charged additional fees before the trial period expires and still other consumers’ returns were considered “invalid” and those consumers were automatically enrolled to receive additional products and were charged for those products.

If you believe you have been a victim of consumer fraud, please contact the Attorney General's Office in Phoenix at 602.542.5763; in Tucson at 520.628.6504; or outside the Phoenix and Tucson metro areas at 1.800.352.8431. To file a complaint in person, the Attorney General’s Office has satellite offices throughout the state with volunteers available to help. Locations and hours of operation are posted on the Attorney General’s Web site, www.azag.gov. Consumers can also file complaints online by visiting www.azag.gov/consumer/complaintform.html."

This case was handled by AAG Taren Ellis.

SmokeFreely.pdf

###

ATTORNEY GENERAL TOM HORNE ANNOUNCES SETTLEMENT AGREEMENT WITH QUIK CASH FINANCIAL SERVICES

PHOENIX (Tuesday March 8, 2011) -- Attorney General Tom Horne announced today a consent judgment against Quik Cash Financial Services to pay up to $170,000 in restitution to “eligible consumers” that were victims of consumer fraud. Quik Cash was a pay day lender which operated in most Arizona counties.

“Eligible Consumers” are those non-residents of Pima County who obtained pay day loans from Quik Cash outside of Pima County and against whom Defendants obtained a default judgment in the Pima County Justice Court and received funds from its collection efforts, including garnishments, which funds were applied to such default judgments.

The Attorney General filed a lawsuit against Quik Cash in December 2009, alleging that the company, in order to obtain as many defaults as possible against consumers who lived outside of Pima and Maricopa counties, filed for default judgments and, in many cases obtained garnishment orders, in Pima County against non-county residents. Quik Cash’s actions allegedly deprived consumers of their right to appear in court or to contest judgments and garnishments and in some cases, allowed Quik Cash to collect on debts consumers had already paid.

The consent judgment requires Quik Cash to comply with the Consumer Fraud Act. In addition, Quik Cash must do the following:

1. If Quik Cash has not already filed releases of the default judgments and garnishments it obtained against Eligible Consumers, Quik Cash shall file releases within ten days of the Effective Date (Tuesday, March 8, 2011).
2. Quik Cash will pay up to $170,000 in restitution to Eligible Consumers within thirty days of the Effective Date. Quik Cash must send a letter explaining that Quik Cash and the Attorney General’s Office have entered into a settlement and that Quik Cash has released the Eligible Consumer’s default judgment and garnishment.
3. Quik Cash will enclose a restitution check with the letter. The envelope containing both must contain the words “Quik Cash Refund” so that consumers do not throw the checks away.
4. Quik Cash must provide a report to the Office within thirty days of mailing the refund checks to include a sample refund letter; the names and addresses of the Eligible Consumers; and the amount of the restitution check Quik Cash sent to each consumer.
5. If restitution checks are returned to Quik Cash as undeliverable, Quik Cash shall use all reasonable efforts to locate the Eligible Consumers. If, after ninety days from receiving the returned checks, Quik Cash has not been able to locate the Eligible Consumers, Quik Cash shall pay the total amount of the undeliverable checks to our Office to be deposited into the Consumer Fraud Revolving Fund as fees and costs.
6. If Eligible Consumers do not cash restitution checks within 120 days of the date of the restitution checks, Quik Cash must pay the total amount of cancelled checks to the Attorney General’s Office to be deposited into the Consumer Fraud Revolving Fund as fees and costs.
7. Quik Cash is required to pay $67,500 to the Attorney General’s office for attorney’s fees and costs.

Horne concluded: “Payday lending is now illegal in Arizona. If consumers are aware of continued payday lending activity or believe they are a victim of consumer fraud, please contact the Arizona Attorney General’s office at (602) 542-5763.”

This case was handled by AAG Noreen Matts.

QuikCash_3-8-11.pdf

###

Tom Horne Announces Start of Consumer Protection Week

PHOENIX (Monday, March 7, 2011) - Attorney General Tom Horne announces the start of Arizona Consumer Protection Week, a week dedicated to helping Arizonans become informed consumers. Every day this week, AG Horne will highlight an issue to protect the consumer.

Horne is also announcing the Attorney General Taskforce Against Senior Abuse (TASA). TASA will provide statewide civil and criminal prosecution of elder abuse, neglect and exploitation and scams that target seniors. TASA has a dedicated phone line (602) 542-2124 or email SeniorAbuse@azag.gov.

To launch the week, the Public Advocacy Division of the Attorney General's office has provided a list of General Consumer Tips:

1. Know who you’re dealing with.
1. Research the company or individual before you do business with them. Too often, consumers research a company only after they’ve been scammed. The Better Business Bureau is a good place to seek information relating to a company and its reputation within the community.
2. Consider recommendations from friends, but also beware of affinity marketing (when scammers target victims through a shared religious affiliation, nationality or language).
3. Check to see if the company or individual is licensed with the appropriate agency.
   For example:

1. Mortgage or real estate professionals - Arizona Dept of Financial Institutions, Arizona Department of Real Estate
2. Home repair - Registrar of Contractors
3. Charities - Registered with the Arizona Secretary of State’s Office.

2. Read before you sign.
1. Be aware of ‘Bait and switch’ tactics - don’t fall for “the contract says the same thing as what I just told you.” Always read the fine print terms and verbiage before signing any document.
2. Don’t let anybody fill in terms for you, or pressure you to sign a contract immediately. If you have a question about terms or language used in a contract or agreement, do not hesitate to ask for a thorough explanation.
   
   
3. Hang up the phone.
1. Sign up for the Do Not Call List. You may list your home phone or cell phone on the Federal Trade Commission’s Do Not Call List. http://donotcall.gov or 1-888-382-1222.
2. If you are receiving an unwanted or harassing phone call, it is OK to hang up.
   
   
4. Be cautious about opportunities involving sending money as a means to receive money.
1. Do not be persuaded to wire money to a company if they tell you that you have won a lottery prize. You probably have not won anything, especially if you did not enter a contest.
2. Be aware of business opportunity scams that involve spending a large sum of money for simple business plans and ideas (Web sites, travel sales, etc.). Before you invest in any business, do your research and fully understand all terms and conditions for any agreement you may sign.
   
   
5. Trust your instincts.
1. If it sounds too good to be true, it probably is. And always remember, it never hurts to do a little research on a company or product before you spend time and money.

If you believe you have been a victim of consumer fraud, please contact the Attorney General's Office in Phoenix at 602.542.5763; in Tucson at 520.628.6504; or outside the Phoenix and Tucson metro areas at 1.800.352.8431. To file a complaint in person, the Attorney General’s Office has satellite offices throughout the state with volunteers available to help. Locations and hours of operation are posted on the Attorney General’s Web site, azag.gov. Consumers can also file complaints online by visiting azag.gov/consumer/complaintform.html.

###

Attorney General Tom Horne Announces TASA - Taskforce Against Senior Abuse

PHOENIX (Friday March 4, 2011) - Attorney General Tom Horne is pleased to announce the formation of the Attorney General Taskforce Against Senior Abuse (TASA) as an integral part of the Public Advocacy Division of the Attorney General’s Office. This is a reorganization and does not involve adding expense to the taxpayer.

Attorney General Tom Horne is committed to making elder abuse awareness, prevention and prosecution a priority. "Our seniors need to feel safe and secure in their homes. The Attorney General's Office is aware of the vulnerability of these citizens and is working to make sure older Arizonans are not victimized."

The Attorney General's Taskforce will work closely with other law enforcement offices, state and local agencies and senior-focused groups to assure an aggressive investigative and prosecutorial presence in the State. The Attorney General will convene an Advisory Panel to facilitate close cooperation with these offices and groups. These agencies and individuals are in the community on a daily basis and oftentimes are the first-responders in abusive situations. They are eyes and ears of the community. The Advisory Panel will bring together the ideas and resources of these community groups to combat elder abuse statewide.

TASA will provide statewide civil and criminal prosecution of elder abuse, neglect, exploitation and scams that target seniors. A key component of the Taskforce is the creation of an intra-office liaison with the Office's Criminal, Consumer Protection, Medicaid Fraud and Community Outreach Sections to prioritize elder abuse awareness, prevention and prosecution. Attorney General Horne's Office also initiated a dedicated telephone number through which the public, other city and county law enforcement agencies, caregivers or family members can report abusive predators who fail to carry out their responsibilities. "The vast majority of elder abuse cases are not reported to authorities. The dedicated number provides an avenue through which any suspected abuse or fraudulent activities can be reported and handled by the appropriate authorities" Horne noted.

The Taskforce Against Senior Abuse dedicated phone number is (602) 542-2124 or citizens may also email TASA at SeniorAbuse@azag.gov.

###