Archive for the ‘Better Business Bureau’ Category

Insurance Scams – Scam artists are taking advantage of consumers’ confusion over the new government health care reform law. Scam artists are going door-to-door, telling consumers there’s a limited open enrollment period to buy health insurance now, and they are selling the consumer fake insurance. Other scam artists are setting up toll-free lines.

Trustnet Financial Company is sending letters to local consumers stating they’ve won a “Consumer Promotion Draw.” The company, which claims to have a Louisville address, sends a check that the “lucky winner” is supposed to deposit, then wire part of the money back to the company for taxes in order to claim the prize. The “winner” never receives the prize and is out the “tax money.”

Exclusive Media Services – has an “F” rating with the BBB. Consumers say the company, which also does business as National Publishers, is claiming membership or affiliation with the BBB. They say the company is also using the names of Publishers Clearing House and other sweepstakes companies. The company is not affiliated with the BBB. Consumers say they receive calls from the company informing them they’ve won sweepstakes for cash prizes or items, but that they must purchase magazine subscriptions to win.

Internet Auto Sales Scam – Be careful when shopping online for a vehicle! Be sure you are buying from a company that you can trust. Consumers report a scam that is erupting, that is misusing company names like Spirit Motor Car, Kiki Motors, and Extreme Motorcars. The scam artist asks the buyer to send a deposit for the vehicle via Moneygram, usually for $2,000 – $3,000 and the car will be delivered in 5 days. The buyer is out the money and never receives the car.

Air Passenger Rights – New rules go into effect later this month to protect air travelers. Among the new rules: Airlines will be required to acknowledge customer complaints within 30 days and address the issue within 60 days. Also, airlines can be penalized for any domestic flight that is more than 30 minutes late on at least half its trips each month for four months in a row. For more information on the new rules, go to www.regulations.gov.

2010 Census – If you didn’t fill out your census form, you will soon be contacted by a census worker. BBB wants to remind consumers that census workers will never ask for donations, bank account, Social Security, or credit card numbers. The Census Bureau may contact you by mail or phone, but will never send an unsolicited email requesting personal information.

Facebook Scam – Facebook users are being targeted in another scam. An email, that appears to be from Facebook, says that the user’s FB password has been reset and the user should download an attachment that contains the new password. The attachment is actually a Trojan horse program, which infects a computer without any visible signs. It can steal passwords from your computer.

iPad Scams – Scam artists are taking advantage of the popularity of the new iPad by sending out spam emails requesting product testers for the iPad. The victims are told they can keep the iPad at the end of the test. The scam artists are after personal information. Other iPad scams involve ads on social networking sites. BBB recommends consumers who want to buy an iPad shop through an authorized dealer or directly with Apple.

Look out for Irish Travelers! These would-be construction workers, who take thousands of dollars from victims who pay them up front for painting, paving, roofing, or other small construction jobs are on the move. BBB recommends consumers not to deal with these types of solicitors, who often have out-of-town license plates and unmarked vehicles.

Managing Credit – Made Simpler – BBB has partnered with Capital One to create a unique set of free resources to help consumers learn how to effectively manage credit. The program provides tailored advice for different types of credit cardholders – including young adults who are new to credit and consumers who may be looking to pay down high balances.

For more information: www.bbb.org/credit-management/.

BBB and Capital One Partner to Help Cardholders Manage Credit Wisely

Managing Credit – Made Simpler offers tailored advice and easy-to-follow tips online for free

April is Financial Literacy Month and Better Business Bureau and Capital One Financial Corp. have partnered to create a unique set of free resources to help consumers learn how to effectively manage credit.  Recognizing that not every credit cardholder is the same, the new “Managing Credit – Made Simpler” (www.bbb.org/credit-management/) provides tailored advice for different types of credit cardholders – including young adults who are new to credit and consumers who may be looking to pay down high balances.

“Faced with the realities of the economic downturn, millions of Americans have been taking a second look at their finances, including examining their spending habits and how they are using credit,” said Stephen A. Cox, President and CEO, Council of Better Business Bureaus. “Regularly examining your finances including how and why you use credit is important. BBB’s Managing Credit – Made Simpler provides easy-to-follow tips, checklists, and advice that can help consumers better understand and successfully manage their credit.”

“Used wisely, credit can be an invaluable tool,” said Shelley Solheim, Director of Financial Education, Capital One.  “Armed with basic information about credit, including understanding of the agreements they are entering into and knowing what’s expected of individual cardholders, consumers can make better choices about how they’re using their cards. Our goal is to help consumers establish good credit habits and empower them to take control of their personal finances.”

Most credit card users understand the need to manage credit effectively, however there is no “One Size Fits All” answer about how to do it. The needs and perspectives of credit users differ based on their level of experience with credit and how they use it.  Managing Credit – Made Simpler provides targeted advice for:

• Consumers interested in securing their first credit card or managing a personal credit line for the first time
• Cardholders who recognize they need long-term guidance on managing their credit efficiently.
• Cardholders who face mounting bills and need advice on how to pay down high balances efficiently.

BBB and Capital One created Managing Credit – Made Simpler to give customized credit management guidance to different types of credit users, based on their specific needs and perspectives. Credit users can self-select the version that fits their needs best:  “New to Credit,” “Balancing Act,” “Overwhelming Obligations”. Topics include strategies to pay off balances faster, how to improve your credit score, reputable resources to get help now, five ways to find more cash and fraud prevention guidelines.

All of the resources and guidance made available through Managing Credit – Made Simpler can be found online for free at www.bbb.org/credit-management/.

BBB warns basketball fans who want to follow the University of Louisville or Kentucky Wildcats along the road to the NCAA Final Four should use caution in order to avoid con artists when buying tickets and travel packages.

Fans could find it difficult to get tickets, and may be tempted by the secondary market, where tickets always pop up. The BBB warns fans to be careful if buying tickets from individuals online or from unfamiliar sources. If buying tickets from a brokerage, check the company’s BBB reliability report. If people buy from scalpers, or from individuals through classified ads or on the internet, BBB warns they are taking a big chance.  The tickets could turn out fake, and there isn’t anything a fan can do about it.

BBB also warns to be sure you are getting what you pay for when it comes to travel packages throughout the tournament. Check out the travel planner with the BBB. Be sure to verify reservations made in your name so that there are no surprises when you arrive. Find out what the cancellation or refund policies are in case you cannot go.

The BBB has these tips for fans who want to follow the teams:

• Use secure websites for online transactions. When buying tickets or making hotel and travel reservations on line, look for a padlock on the page, and the letter “s” in the URL (web address box) after the “http.” Example: https://www.xyz.com. Unsecure sites will only show http://… If neither is present, the site is not secure and your credit card or bank account information may not be safe.

• If buying online, beware of sellers leading you away from secure, reliable transaction methods such as PayPal or those who discourage using credit cards. If you use a credit card and something goes wrong, you can try to dispute the charge with the credit card provider. Beware of sellers that want you to wire money via Western Union – there is no way to trace the cash if something goes wrong.

• Buy at your own risk. You are better off buying from a reliable source. If you buy tickets from unfamiliar sources or scalpers, there is no guarantee that they will be legitimate. (Scalping laws vary from state to state.)

Remember, if a deal sounds too good to be true, it usually is. Check out companies with the BBB at www.bbb.org or call 1-800-388-2222.

High school students and their parents are often concerned about upcoming college expenses. The Better Business Bureau urges students and parents to be cautious regarding offers from scholarship services and organizations that require upfront fees to apply for or search for scholarships.
 
A local consumer says his son was contacted by Edifi-College Financial Aid Services. The company has an “F” rating with the BBB. The company says it assists clients in planning for college. Edifi mails prospective college students a letter advising them they have been selected for a personal interview. Students who call for the interview are scheduled for a financial aid seminar along with other students and parents. At the seminar, parents are given the option to purchase services at a charge of approximately $900. The company’s primary service is assistance filling out financial aid forms. For a complete report on the company, go to http://www.bbb.org/upstate-new-york/business-reviews/scholarships-and-financial-aid/edifi-college-financial-aid-services-in-albany-ny-24001253/.
 
 
There are varieties of scholarship scams. Here is what to look out for:
 
1.      Scholarship search organizations often fail to make good on promises.  In exchange for upfront fees, students may receive lists of possible scholarship sources but, in most cases, the organization does not assist students in obtaining the listed scholarships. In other instances, individuals never hear from the organization after paying the fee and supplying all requested information. Typically, scholarship search services send mailings to schedule “interviews,” usually targeting parents of high school students. These “interviews,” usually at a local hotel, are little more than sales pitches for scholarship information services costing $900 or more. Almost always, any information provided by these services is available free from other sources.
2.      Advance fee scholarship applications require an upfront fee to apply for a scholarship but, in some cases, the organization refuses to provide documentation that any scholarships are awarded. If you check the company, you’ll often learn that it has a bad record with the BBB. The companies will often collect application fees, but award no scholarship. 
Obtaining free scholarship information can begin with high school counseling offices, college financial aid offices, and research at public libraries, bookstores, or on the Internet. Consider all available options, including federal, state, and local aid programs, financial institutions’ loan plans; and a wide variety of scholarships, fellowships, or other programs offered by colleges. Many reputable and well-known private organizations and businesses also offer scholarships to students. 
Individuals interested in using a scholarship service are urged to investigate the background of a company using the Better Business Bureau’s website, www.bbb.org, or by calling the BBB at (502) 583-6546 or 1-800-388-2222 for a reliability report. Ask the company to put details of its services and promises in writing, including the refund policy. Finally, be suspicious of “guaranteed offers.” Any guarantee that “you will win a scholarship” or “your money back if not satisfied” is as good as the organization behind the guarantee. So even with a guarantee, it’s important to know that you are dealing with a reputable and reliable organization.

Local BBB Teams Up with U.S. Postal Service and U.S. Postal Inspection Service to Mark National Consumer Protection Week

Better Business Bureau is marking National Consumer Protection Week (NCPW), March 7 – March 13, by highlighting its resources that advise consumers about spending money wisely and avoiding being scammed by con artists.

BBB is a proud sponsor of NCPW, during which hundreds of national and local organizations work together to educate consumers on the importance of taking control of and protecting their personal finances. The theme of this year’s NCPW is “Dollars and Sense”, which emphasizes consumer education for every stage of life – from grade school to retirement.

BBB is teaming up with the U.S. Postal Service and the U.S. Postal Inspection Service in two separate events to bring awareness to NCPW, and bring education to a maximum number of people in two different locations. Here is more information on each of the events:

Event 1 – BBB and the U.S. Postal Service

Monday, March 8, 2010

11 am – 1 pm

Louisville Main Post Office Lobby

1420 Gardiner Lane

Louisville, KY 40231

Event 2 – BBB and the U.S. Postal Inspection Service

Thursday, March 11, 2010

11 am – 2 pm

Borders

400 South 4^th Street

Louisville, KY 40202

The organizations will distribute DVD’s and brochures warning against identity theft and fraudulent schemes, providing consumers with valuable information about protecting their finances. BBB will also hand out the first edition of its 2010 Wise Buying Guide.

“The economy is still in a slump and, now more than ever, consumers need to take control of their spending habits and be vigilant against fraud and scams,”  says Reanna Smith-Hamblin, Vice President/Communications of the BBB serving Louisville, Southern Indiana, and Western Kentucky. “We will be out at these events to help encourage consumers to take the time to get educated during National Consumer Protection Week, and remind them that they can use the BBB as a resource.”

Following are just a few ways that BBB can help consumers shop smarter and safer.  BBB is here to help if…

• You need every-day advice on how to manage your money and be a savvy consumer. BBB has created hundreds of tips columns and consumer alerts on personal finance topics such as how to build a family budget, hire a contractor or avoid the latest scams. Advice you can trust is available online at bbb.org.

• You need help finding a business you can trust. The BBB Accredited Business Locator can help you find businesses in your area that uphold BBB’s rigorous standards and have made a commitment to support the work of BBB. There are nearly 400,000 BBB accredited businesses across North America including retailers, contractors and online businesses.

• You want to research a business before you buy. BBB maintains reports on nearly 4 million businesses across North America. A business’s reliability report will tell you how many complaints the business has received, how they responded to complaints and their letter-grade rating reflecting BBB’s experience with the business.

• You have a dispute with a business. Not only is BBB here to help educate consumers before they buy, BBB can also lend a hand if you have a dispute with a business. Every year BBB receives hundreds of thousands of complaints from disgruntled consumers and is usually able to help resolve the issue quickly and easily.

• You have been ripped off by a scammer. While BBB isn’t a law enforcement agency and cannot arrest scammers or unscrupulous businesses, your complaint enables BBB to identify trends and warn other consumers and hopefully prevent others from being taken advantage of as well.

Check out all of the online resources and tools BBB provides at www.bbb.org. More information and advice is also available on the National Consumer Protection Week Web site, www.consumer.gov/ncpw.

Consumer Protection Week begins March 7th. BBB is a proud supporter of this nationwide effort to educate the public on how to become savvier consumers. Hundreds of national and local organizations will work together to educate consumers on the importance of taking control of their personal finances. Look for your BBB at various local events.

U.S. Census – Be alert for potential scams surrounding the U.S. Census which ramps up in March. Most census forms will arrive in the mail March 15 – 17 and then at the end of April, Census workers will go door-to-door to households that didn’t return the form. Beware of anyone who asks for your social security number or bank account information. Also, the Census will not contact you by email.

IRS Scam – Beware of an email that looks like it’s from the IRS. The “very important note” states the consumer is eligible for a tax refund, and asks the consumer to go to a website that looks like the official IRS website. The fake website asks for the consumer to use a small bank debit account, like a hometown bank, instead of a large bank like PNC, Chase, etc. The IRS will never contact someone via email about taxes.

Chile Earthquake Scams – Be alert for scams surrounding the Chile earthquake. BBB recommends to avoid making donations to unfamiliar websites or as a result of a solicitation received via email. Also be aware that scams can occur on social networking sites like Twitter, Facebook, and MySpace. For more information on donations, check out the BBB’s Wise Giving Alliance at www.give.org.

Online Job Scams – Job seekers who respond to certain job postings on Craigslist are receiving an email requesting information for either a background check or credit report prior to consideration for employment. The scammer directs the job seekers to a website that is used to steal their personal information. Legit job offers never require upfront fees or bank account information before an interview.

Online Housing Schemes – Consumers looking for homes to rent on Craigslist should be skeptical of ads that seem “too good to be true.” Consumers across the country are being duped by scam artists who say they are living in Nigeria and want to rent their home in the U.S. The scam artist offers a cheap price for the rental, but wants an advanced payment wired to them. The listings are legitimate homes, many of them on the market for sale. However, the real owner knows nothing of this elaborate scam.

The Love Foundation claims to be a program that offers financial assistance for children of the homeless and unemployed. The ad is popping up on Craigslist and other sites. The “foundation” claims to be out of different states. Those who need assistance are asked to call 1-800-217-9750. The first thing the caller is asked to provide is a social security number.

National Publishers, Inc. is a Mississippi-based magazine subscription company that’s claiming membership with the BBB. The company, which also does business as Exclusive Media, has an “F” rating with the BBB due to failure to correct a pattern of complaints. Consumers say they received a call from the company informing them that they won a sweepstakes for cash prizes, items, or trips, but they are told they must purchase magazine subscriptions in order to win. Consumers report that they are then charged several payments each month, sometimes totaling hundreds of dollars.

Spring Break Scams – Be cautious when surfing the Internet to find great deals on spring break travel. While the rates may look good, you may click on an offer and find that the total price is much more than the advertised price. BBB recommends spring breakers review all terms and conditions as well as cancellation and refund policies before finalizing deals, and check out the company first at www.bbb.org.

Online Payday Lenders – BBB has received hundreds of complaints against payday loan sites like OnceClickCash.com, 500Fastcash.com, rbtloans.com, and Ameriloan.com. Complainants say they agreed to what they thought was a one-time payday loan, typically a few hundred dollars to be paid off in two weeks, and quickly found out that payments went towards recurring finance charges and never toward the principal. They report paying two to three times the amount of the original loan.

BBB Lottery Scam – Scam artists are posing as the BBB in order to steal tens of thousands of dollars from victims who are led to believe they have won a lottery. Consumers are contacted on the phone or by e-mail by someone claiming to be an employee of the BBB. They were told that they won a lottery and that they must wire money to get their prize. In some cases, the scammers used the names of real BBB employees, directing victims to legitimate bios and profiles on BBB’s Website. BBB does NOT run a lottery nor award prizes to consumers. If you receive a call or e-mail like this, contact your BBB.

Grandparent Scam – A local couple was scammed out of over $4,000 after they received a call from what they thought was a cop who said their granddaughter was in jail in Canada. The “cop” told the couple that the granddaughter needed money for bond and a lawyer, and asked them to wire the money. The “cop” even let them talk to their “granddaughter,” who told them not to tell anybody about what happened. Seniors across the country have lost thousands of dollars to this scam.

Cragslist Job Scam - Not all job postings are what they seem to be on Craigslist. BBB’s across the country are receiving inquiries on questionable job offers through the site. Some signs that the posting could be a scam: They fail to list a specific location for the job, they list a salary that seems too good to be true, They post a government job or “work from home” opportunity, misspellings, no job contact information, and asking for your personal information.

Credit Card Act – Circle February 22nd on your calendar. That’s the day new protections will kick in for cardholders across the U.S. BBB recommends all cardholders familiarize themselves with the new provisions. Some of the new regulations include: more notice for new interest rate changes, older age restrictions, new rules for monthly statements, over the limit opt-in, and more. For a breakdown of the Credit Card Act of 2009 go to creditcards.com.

IRS Scams – At this time of the year, scam artists take advantage of taxpayers. Whether it’s a phone call, an e-mail, or a text message, be wary if it claims to be from the IRS. The message may ask for you to provide personal information. This is a phishing attempt to steal your identity. The IRS will only contact you via the United States Postal Service.

Refund Anticipation Loans – BBB warns to use caution when dealing with refund anticipation loans, which are offered by some tax preparers. These loans give taxpayers an amount equal to their tax refund within 24 hours, but the fees and high interest rates associated with the loan could cost taxpayers in the end. BBB suggests that if it is absolutely necessary to have a refund immediately, shop around. RAL fees vary by tax preparer.

UBI Payment Services promises thousands of dollars in exchange for answering a simple math question and providing a signature. Consumers across the country are receiving letters that state a “guarantee to receive $5,000″ if they sign a document and solve a puzzle. The company has an “F” rating with the BBB. UBI Payment Services does business under at least 35 different names. Go to www.bbb.org for a list.

Text Messaging Scams – Scam artists are using text messaging more and more to steal your personal information. The text message purport to be from banks, credit unions, credit card companies, the IRS, and more. The urgent message warns the recipient that his or her account or identity has been compromised. A toll free number is provided for a response, and when it is called the consumer is asked to verify a credit card number or other form of identification. Delete these text messages!

‘809’ Area Code Scams – Be suspicious of e-mails, texts, or messages referring you to call a phone number with an 809 area code. The message often sounds like an emergency, and you are told to call the 809 number right away. When you call, you reach a pay-per-call number in the British Virgin Islands, and are billed $25 or more for dialing the number.

Looking for Love? Consumers spend hundreds of millions of dollars on dating services each year. Whether it’s a matchmaking service or online dating, BBB receives a large number of complaints on the industry. If you plan to use these services, be sure to check out the company with the BBB first, don’t fall for exaggerated advertising claims, and before you sign a contract be sure to read it carefully. Go to www.bbb.org for more information.

It’s time to start working on your taxes! If you plan to hire someone to do your taxes this year, BBB recommends you choose a preparer wisely. Tax payers are ultimately responsible for everything on their return, even if it is prepared by someone else.  Reputable tax preparers will ask tax payers several questions to determine whether expenses, deductions and other items qualify and remind clients that they need to keep careful and complete records in order to substantiate information on their tax return.

The BBB offers these tips when choosing a tax preparer:

• Check to see if the preparer has any questionable history with the Better Business Bureau, the state’s board of accountancy for Certified Public Accountants or the state’s bar association for attorneys. Find out if the preparer belongs to a professional organization that requires its members to pursue continuing education and also holds them accountable to a code of ethics.

• Ask family and friends for recommendations.

• Find out what the service fees are before the return is prepared. Avoid preparers who base their fee on a percentage of the amount of your refund or who claim they can obtain larger refunds than other preparers.

• Only use a tax professional that signs your tax return and provides you with a copy for your records.

• Avoid tax preparers that ask you to sign a blank tax form.

• Determine if the preparer’s credentials meet your needs. Does your state have licensing or registration requirements for paid preparers? Is he or she an enrolled agent, CPA or attorney? If so, the preparer can represent taxpayers before the IRS on all matters, including audits, collections, and appeals. Other return preparers can represent taxpayers only in audits regarding a return signed as a preparer.

• Before you sign your tax return, review it and ask questions.

You’ll also want to avoid any tax scams. Remember, the IRS will not contact you by phone or email and ask for your personal information. They will contact you by mail, only. Go to www.irs.gov for more information on tax related scams. You can contact the Better Business Bureau at www.bbb.org or call 1-800-388-2222.

The Wal-Mart gift card scam has apparently made its way to Kentucky. A local consumer contacted the BBB to inquire about a text message she received, advising her that she won a $200 Wal-Mart gift card. When she called the number in the text message (877-232-5149) she was told that in

Kentucky the gift card was for $180 and that she would need to pay $7.60 for shipping/handling fees. She was then asked to provide her credit or debit card number. Luckily, the inquirer was skeptical. She hung up the phone and decided to call the BBB before giving out any personal information.

Wal-Mart does award gift cards if you take part in a customer service survey found on your receipt. But a Wal-Mart spokesperson says the company tells consumers they’ve won through certified mail and a phone call. Wal-Mart will never ask for your personal or banking information.

These text messaging scams are getting more and more popular. It’s called “shmishing,” scams by short message services (SMS), or text. BBB advises consumers to be wary of random message sent to your phone, especially anything to do with finances. BBB suggests if you receive a message like this, do not reply to it, don’t call the number in the text, and don’t click on any hyperlinks. DELETE the message!  Also, report the message to the FCC, the FTC, and the BBB.  If you are still concerned over the text message, contact the company direct. Don’t rely on the text message. And, if you have to pay for text messaging, contact your provider as soon as possible to dispute the charge.

For more information on consumer tips and scams, go to www.bbb.org or call 1-800-388-2222.

In the wake of the earthquake disaster in Haiti, Americans are donating via text message more than ever before. The Better Business Bureau Wise Giving Alliance advises donors that giving through text can be a safe and easy way to give—but you should still use caution.

Within days following the disaster in Haiti, it was widely reported that more than $3 million was donated through text message to such organizations as the Red Cross and others.

While it is a convenient way to donate, donors should still do their due diligence to make sure their money is going to trustworthy charities, not to scam artists. BBB Wise Giving Alliance offers the following tips on giving through text messages:

• Confirm the number directly with the source. This is an emerging method for donating. It is ripe for exploitation by scammers.
• Be aware that text donations are not immediate. Depending on the text message service used by the charity, text donations can take anywhere from 30-90 days to be transferred to the designated charity. If you would like the donation to be received immediately by the charity, you can give online through the charity Web site, by calling the charity directly or by sending a check in the mail.
• Review the fine print. When you give to a charity through text message, you might also be signing yourself up to receive text message updates from the charity in the future. A charity should include the details of its text campaign on its Web site so you can see what you’re signing up for and how you can opt out.
• Research the charity. Giving wisely to a charity isn’t just about making sure that the solicitation isn’t coming from scammers. Wise donors make sure their donations are going to charities that are best equipped to help in the relief efforts and will responsibly use the money for its intended purpose.

BBB Wise Giving Alliance has compiled a list of charities which are seeking to provide assistance in response to the earthquake in Haiti and meet BBB Standards for Accountability at http://www.bbb.org/us/haiti-earthquake-relief/.