Ahead of Black Friday and Cyber Monday, Attorney General Kwame Raoul is reminding Illinois residents to exercise caution when shopping online. In particular, Raoul is urging shoppers to do research before taking advantage of “buy now, pay later” offers, using services to split the cost of a purchase into several payments, or accepting offers of loans.
Some businesses and retailers offer “buy now, pay later” plans that allow shoppers to make a purchase right away, but defer payment over a period of weeks or months, sometimes with the claim of paying zero interest. However, some of these offers include interest and additional fees, which can spike if there is a missed payment.
Attorney General Raoul recommends that people using “buy now, pay later” services be aware of any interest charges or fees, whether the service will report the consumer’s payment history to credit bureaus, and whether a credit check is done prior to approval for a plan. Read the fine print on the service’s privacy policy to find out what personal information is being collected and how that information will be used. Individuals should also understand the risks in advance, including what happens if they miss a payment.
Additionally, Attorney General Raoul encourages people to consider the following recommendations before shopping online this holiday season: Avoid fake websites. Fraudulent websites may look like the real thing and may even have a similar website address. Double check to ensure you have typed in the right website address. Read reviews if you are shopping on an unfamiliar website. Be careful when clicking on links that were sent to your phone or email from suspicious or unfamiliar sources.
Never give out private information – such as your Social Security number, payment information, usernames or passwords in an email, text message or a pop-up chat box. Always pay with a credit card. Transactions paid with a credit card generally limit your liability for fraudulent charges. Paying by debit card, prepaid cards, gift cards and cash do not offer the same safeguards. Be wary if an online retailer or website does not accept credit card payments and requires that you pay by wire transfer, money order, gift card or cryptocurrency.
Be extremely careful when sending peer-to-peer payments through apps such as Zelle, PayPal, Venmo and Cash App. Most peer-to-peer apps are designed so you can pay people or businesses you know, not people or businesses you are unfamiliar with. Use multifactor authentication or two-step verification when possible. Read the fine print to make sure there aren’t hidden costs or obligations that could sign you up for recurring charges, like a subscription or a membership. Ensure you receive a delivery date. If a seller doesn’t promise a ship time in their ad, they must ship your order within 30 days of receiving your name, address and payment, unless they explain delays and give you the option to cancel and receive a refund.
Attorney General Raoul encourages those who believe they have been victims of a scam to file a complaint on the Attorney General’s website or by calling the Attorney General’s Consumer Fraud Hotlines: 1-800-243-0618 (Springfield)
