One-Stop Consumer Education and Protection Resource

Did you know that Tennesseans reported losing $20.6 million to scams and fraud in 2019?
During the COVID-19 outbreak, Tennessee residents have also lost over $1.5 million to fraud and other predatory scams. Some of the most prevalent scams include identity theft, credit card and employment fraud.

City of Chattanooga Consumer Financial Protection Initiative

In July of 2020, the City of Chattanooga Mayor’s Office received a planning grant and technical assistance from the Cities for Financial Empowerment (CFE), a national nonprofit organization devoted to improving the financial stability of low and moderate income households through partnerships with municipalities and their supporting partners. The purpose of this grant partnership is to help raise consumer awareness of scams, fraud and predatory practices businesses use, especially as many residents are experiencing financial distress from the COVID-19 pandemic. To learn more about navigating issues related to scams, fraud and predatory practices explore the content below.

Tennessee Consumer Protection Laws

Protect yourself from scams and fraud.

Scammers often pretend to be contacting you on behalf of the government. They might use a real name, like the Social Security Administration, the IRS, or Medicare, or make up a name that sounds official. Some pretend to be from a business you know, like a utility company, a tech company, or even a charity asking for donations. Whether you are contacted by phone, mail, email, text, or in-person, the following tips provide advice on how to spot a scam.

- How to Avoid a Scam; Four Signs It’s a Scam
- Keeping TN Seniors Safe

Additional Tips:

Register your phone number with the National Do Not Call Registry: www.donotcall.govor 888-382-1222.
Also register with the Tennessee Regulatory Authority’s Do Not Call Program: www.tn.gov/tra/topic/tennessee-do-not-call-program
If you don’t recognize the number calling, consider letting the call go to voicemail.
Only share your personal information and bank/credit card numbers with callers that you know and trust.
Avoid sending cash, gift cards, prepaid debit cards or wiring money to someone requesting by phone.
By paying with credit card or a recognized third party payment service, you may have the opportunity to dispute fraudulent charges.

I Have Been Scammed, Now What?

Do not answer calls, emails, messages, or letters that the scammer may send. It can be tempting to stay involved with the hope that you will get your money back, or resolve the issue. However, it is important that you not continue the conversation with the scammer. Additionally, scammers often target people caught in recent scams. You should beware of additional scammers that may contact you.

Protect yourself from further risks.
Update your bank, credit card, social media, and email account passwords to try to limit further unauthorized access. Please be sure to use strong passwords when changing account passwords.

If you are the victim of a credit card scam or identity theft, please contact your bank or financial institution(s) immediately. They may be able to cancel or reverse fraudulent transactions.
Credit Freezes: An amendment to Tenn. Code Ann. § 47-18-2108 establishes that a consumer reporting agency shall not charge a Tennessee consumer to place, temporarily lift, or permanently remove a security freeze.
Notify the three major credit bureaus. They can add a fraud alert to warn potential credit grantors that you may be a victim of identity theft. You may also want to place a free security freeze on your credit report:
- Equifax: (800) 525-6285
- Experian: (888) 397-3742
- TransUnion: (800) 680 -7289

Report the Scam (see reporting tab) and Share your story.
- When you report a scam, consumer protection agencies use this information to spot trends, educate the public, and protect the community from future scams and fraud.
- And, telling your friends and family about the scam is one of the best ways to take action. It can be difficult to share, but your story can help others to avoid scams in the future.

Reporting Scams.

When you report a scam, consumer protection agencies use this information to spot trends, educate the public, and protect the community from future scams and fraud.

To speak with a local representative contact 311 or call 423-643-6311 (for local data tracking and alerts)

Report your issue based on the nature of the scam:

- Tennessee Division of Consumer Affairs: Scam complaints can be reported to the Consumer Affairs Division of the Tennessee Attorney General’s Office. Consumers can find more resources, including how to file a complaint regarding a business transaction, by visiting www.tn.gov/consumer.
- Federal Trade Commission: Contact the Federal Trade Commission at 1-877-FTC-HELP (1-877-382-4357) or use www.reportfraud.ftc.gov to report various types of fraud, including counterfeit checks, lottery or sweepstakes scams, and more.
- Identitytheft.gov: If someone is using your personal information to open new accounts, make purchases, or get a tax refund, report it at www.identitytheft.gov. This federal government site will also help you create your Identity Theft Report and a personal recovery plan based on your situation. Questions can be directed to 877-ID THEFT.
- Better Business Bureau (BBB): Reporting to the BBB Scam Tracker can help others become aware of scams that may be circulating in your local area.
- Local Law Enforcement: Consumers may report scams to their local police department or sheriff’s office, especially if the issue involves theft.

Legal Resources and Debt Collection Tips

Legal Resources for Consumers

Tips on Debt Collection

Unfair debt collection practices occur when debt collectors violate the guidelines for debt collectors outlined under the Debt Collection Fairness Act. The Fair Debt Collection Practices Act (FDCPA) is the primary federal law governing debt collection practices. The FDCPA prohibits debt collection companies from using abusive, unfair or deceptive practices to collect debts from consumers. The FDCPA covers mortgages, credit cards, medical debts, and debts covering personal/family purposes. However, the FDCPA does not cover business debts.

Sample letters for settling disputes

Predatory Lending

The Chattanooga City Council passed a resolution back in January (2019) asking the State Legislative delegation to lower the maximum allowable interest rates for payday lenders, which is currently 300% by state law. According to the PEW Charitable Trusts, the average payday loan requires a lump-sum repayment of $430 on the next payday, consuming 36 percent of an average borrower’s gross paycheck. However, research shows that most borrowers can afford no more than 5 percent while still covering basic expenses and as a result, most borrowers renew or reborrow the loans. The payday lending business relies on extended indebtedness: three-quarters of payday loans go to those who take out 11 or more of the loans annually. People without a four-year college degree, home renters, African-Americans, and those earning below $40,000 are more likely to have used a payday loan. And contrary to payday lender advertising, seven in 10 borrowers use them for regular, recurring expenses as opposed to unexpected or emergency costs.

Additional resources:

- Tips for Pursuing Post Secondary Education
- What to Know Before You Buy a Car
- What to Know about Payday Loans
- Home Buying Guide
- Immigration Assistance
- Mortgage Advertisement and Relief
- Tips for Hiring a Contractor
- Other Types of Scams (Spanish Version)
- Free Credit Counseling Services and Programs

Thank you to the following partners for providing resources and information to protect TN and area consumers against scams, fraud and predatory practices.

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