BBB WEEKLY TIPS YOU CAN TRUST
Compiled by Zan Deery, Communications/Investigations
For the Week of 8/3/09
zan@spokane.bbb.org 800-356-1007 or 509-455-4200
www.bbb.org
Readers of these tips should take into consideration the importance of the practice in question and the total performance of a company.
For complete information and BBB reports, please visit www.bbb.org
TIP NUMBER ONE
AMERICAN FREEDOM FINANCIAL of CA Faking out callers, Sending them to View SE FL Accredited Business Report INSTEAD OF THEIRS
2401 East Katella Avenue, Suite 200
Anaheim, CA 92806
Phone: (714) 941-5600
Fax: (877) 513-7872
http://www.americanfreedomfinancial.com
BBB received a call from a customer reporting that they received a call from the above-mentioned company offering debt negotiation services. The company stated that they were in good standing with BBB and instructed the consumer to look their report up! The company rep gave them the number for BBB SE FL and directed them to a report for a whole other company providing the same services. The company they were faking people out with is an accredited business with an A+ rating.
Complainants for the above mentioned company allege unauthorized credit card charges, and confusion about the actual services offered. Customers complain that after notifying the company they decided not to engage their services, or after cancelling existing contracts, they incurred unauthorized debits from their accounts. The company responds to complaints by issuing refunds in most cases.
This company is not a member of BBB. The company is misusing the BBB's name and/or logo and report improperly and without permission. The company was notified on April 3, 2009, to remove all references to the BBB name, logo, and/or initials. In addition, when reviewing the company’s website advertisements, BBB noted that the web pages display testimonials of satisfied customers with positive results and comments. The web pages also display a disclaimer in very fine print at the page bottom which says “The scenarios displayed in these testimonials are fictional, and are not to be construed as a guarantee of results."
BBB ADVICE
BBB experience with debt negotiating companies is that they attract customers with large credit card debt by claiming to be able to settle those debts for a fraction of their face value. They often claim that their services are more effective than those provided by credit counseling services and that they are a superior alternative to bankruptcy.
These companies usually instruct their clients to stop paying their creditors. Some companies direct clients to make their payments to the debt negotiation company instead. They promise that when sufficient cash has been accumulated to offer a settlement to a creditor, they will do so. They go on to say that their program may take two or three years to complete. Most companies collect their fees upfront and generally the fees are based on some percentage of the promised savings.
Other companies simply collect their fee and advise debtors to save their money to pay their creditors themselves. California law limits the amount of fees debt negotiators can charge, but by not collecting the money and distributing it to your creditors, companies can remove themselves from the limiting statutes and charge whatever they wish. What they are supposed to do for you while you’re saving up your money is to contact your creditors and inform them that they’re working with you, negotiate the amount to settle your debt, and ask them stop contacting you.
Complaints on these companies allege that creditors continue to harass clients, fees and interest continue to accumulate, and that the companies do not contact the creditors. Usually, creditors turn the claims over to collection agencies, file suit and pursue collection of the money owed to them. Debts are seldom settled, customer's credit is ruined, and many people are sued forcing them to seek bankruptcy protection. Typically, it is difficult to obtain refunds from the companies.
Debtors may not realize that if their creditors do accept a negotiated settlement, the amount forgiven constitutes taxable income.
TIP NUMBER TWO
LATEST SWEEPSTAKES SCAMS:
#1 A&A Associates Using Fake Helena, MT Address
#2 PHARMONEY TRUST, INC. of London, England
#1 A&A Associates
112 Dunbar Ave, Helena, MT 59602-7701, 416 833-0034 206 202-6365
The above-mentioned scam is sending fake checks using a fake Helena, MT address stating you have won a contest. The area code they are providing for their phone is 416, a Toronto, Ontario area code.
The mail includes a (fake) check which is to be deposited by the consumer and a portion of it wired to the scammers.
Consumers are warned NOT to deposit these checks or participate in any way in this fraudulent activity. Consumers are asked to turn all of the mailing and its contents into their local post office, requesting that the mailing be forwarded to the Postal Inspection Service in their area for investigation.
#2 PHARMONEY TRUST, INC., 1 Caven St. London, England
The above mentioned scam sends random letters to people stating that they represent Pharmoney International sweepstakes and you have won. The signer is Lethia Revelry, VP. The letter instructs you to contact a London, England number to claim your prize. BBB Advice? Save your dime!
TIP NUMBER THREE
US POSTAL INSPECTOR WARNING: Work-at-Home Scam Alert for
Mail Assistants re “Internet Independent Workers”
Thanks to the US Postal Inspector for this Warning
The latest scam to hit the Internet has just arrived: Jobs for people seeking part-time positions—called “mail assistants”— for work done at home. Vacancies are posted on Craigslist.com under the name of ABS Consulting. Based in the country of Luxembourg, ABS purports to have facilities throughout Europe, referred to as “Forward Luxembourg.” It claims to be a leading global provider of risk-management services.”
FULL WARNING HERE
https://postalinspectors.uspis.gov/radDocs/consumer/CrimeAlert_db.pdf
TIP NUMBER FOUR
Two business supply DECEPTIONS to report:
NATIONWIDE SERVICES of Ft. Lauderdale, FL and
CENTRAL SUPPLY WAREHOUSE of Marina Del Rey, CA
(w/ Orders Shipped and Billed by IDCSERVCO of Culver City, CA)
PO Box 23099
Fort Lauderdale, FL 33307
Unauthorized Invoices are being sent by this company for office products commonly purchased by businesses in hopes that a busy staff will pay or a new person will sign and agree to the charge without question. Nationwide Services of Ft. Lauderdale, Florida is one such group targeting regional businesses.
FULL REPORT HERE: http://www.seflorida.bbb.org/businessreport.aspx?companyid=26000748
578 Washington Blvd #433
Marina Del Rey, CA 90292
Phone: (310) 459-9467
Fax: (866) 332-4903
(Telemarketing for Questionable “Orders”)
3962 Landmark Street
Culver City, CA 90232
Phone: (800) 446-9835
Fax: (800) 335-3962
(Shippers and Billers)
Printing Supply deception (“toner phoners”) is being utiliszed by these two companies working in concert. BBB complaints contain a pattern of allegations that sales representatives misrepresent that they are the complainant's regular office supply company or that they are calling on behalf of a printer cartridge manufacturer. Many other complainants state that they receive unordered toner, deliveries of unauthorized merchandise, and/or multiple orders of merchandise as partial shipments.
Some complain that the company charges excessive shipping and handling charges and that the toner is far more expensive that their regular supplier. The company generally responds to the allegations by stating they do not solicit orders or do telemarketing, but that they are a shipping and billing service organization only.
The company responds by providing credits, sending complaints to the specific telemarketing organizations, placing complainants on do-not-call lists, and, in some cases, stating that the telemarketer resolved the complaint.
BBB tips for avoiding business supply scams:
- Train your staff. Advise employees who are not authorized to order supplies and services to refer any such sales people to the purchasing department.
- Require sales pitches in writing. The purchasing department should be instructed to not respond verbally to unsolicited phone offers for office supplies.
- Institute strict purchasing and accounting controls. Every purchase should be documented by issuing a purchase order to the supplier with an authorized signature and a purchase order number. The handling of invoices should be centralized and authorization closely checked.
- Don't deal with unknown sellers. First check the business' BBB Reliability Report at www.bbb.org.
- Keep a list of regularly used vendors. This will help protect your business against schemers who claim your business previously used their services.
- Know your rights. If you receive supplies or bills for services you didn't order, don't pay. According to the Federal Trade Commission, by law, it is illegal for a seller to send bills or ask you to return unordered merchandise.
Report office supply scams to the Federal Trade Commission and your state Attorney General. If there is an unresolved issue with a particular business, file a complaint at www.bbb.org.
For other business supply scam examples visit: http://www.bbb.org/us/article/4610
TIP NUMBER FIVE
LATEST BANK OF AMERICA PHISHING SCAM: A Bit Tricky, Don’t Believe!
Did you get this email recently? Don’t believe it! If in doubt, contact your real bank directly to discuss.
-----Original Message-----
From: Bank Of America [mailto:securemsgs@bankofamerica-alerting.com]
Sent: Thursday, July 30, 2009 8:01 PM
Subject: You have 24 hours to confirm your personal information
This e-mail was sent to you because we have detected an error in your billing information during our regular schedule account maintenance and verification. This might be due to either following reasons:
* A recent change in your personal information (i.e change of address).
* Submitting invalid information during the initial sign up process.
* An inability to accurately verify your selected option of payment due an internal error with our processors.
You have 24 hours to go to our secured server below and confirm your personal information, otherwise your ATM Debit / Credit Card access will become restricted:
XXXXXXX (Link here removed by BBB for safety reasons)
Note: If this message is in Bulk/Spam is because of your Mail Settings, please select the confirmation message and click "Not Spam."
“YOU CAN’T FOOL ME” CALL EXAMPLE TO WATCH FOR!
Alabama AG and BBB Warn These Scam Calls May be Tried Elsewhere
MONTGOMERY, Alabama--The federal stimulus program is the latest tool for scam artists. Alabama Attorney General and the BBB warn that scam artists are targeting low-income citizens in their state telling them that they “are eligible for a $1,000 food voucher from the stimulus program.”
The callers say the person must pay $3.95 by credit or debit card to get the voucher. Then they use the credit card information to steal the person's identity.
BBB ADVICE
Do not give into this call scenario if it is attempted on you! Spread the word about this type of call and warn others. There is no such offer attached to the stimulus program.
ADDITIONAL WARNING TO BUSINESSES
ALLFIRE Equipment Services of Coeur d’Alene/Sandpoint
Back Targeting Area with Questionable Extinguisher Services
Allfire Equipment Services
PO Box 1285
Coeur d' Alene, ID 83816
877-281-0653
Thanks to the Moscow Chamber of Commerce for this Warning!
The Moscow Chamber of Commerce alerted BBB and its chamber members last week about a company known to BBB for its questionable service tactics.
Regional businesses report to BBB that this company's representatives continue making unannounced service calls to area businesses claiming to be the authorized service company for their fire safety equipment. Some company representatives state that they have been sent by the Fire Department to inspect the company's fire extinguishers and fire safety equipment.
After a brief examination, they put a sticker on the fire extinguisher, ask for a signature on a form to verify that they have inspected the equipment, and either demand payment then and there or within a short period of time, invoices are sent out by mail billing the businesses for the inspection service, or multiple inspections. When the maintenance is completed, a bill is presented with a demand for immediate payment. When the companies refuse to pay the bill due to false representation, claiming the service is not authorized, their bill is turned over to collections for payment.
Regional businesses report to BBB that they do not have a contract with Allfire, but have annual contracts with other companies to maintain their fire extinguishers.
BBB ADVICE
Businesses should caution their employees to be on alert for anyone coming to their offices, shops, stores or restaurants stating that they are your "official agent" or your "official service" insisting on servicing your fire extinguishers, performing services on the hood and duct systems over cooking areas, or to conduct maintenance on automatic sprinkler systems.
BBB's nationally have received reports of fraudulent promoters engaging in high pressure deceptive sales methods to convince business owners to use their service.
Anyone contacted or approached by these companies should refuse to do business with them and notify their local police department ASAP to report it. A good physical description of the person, vehicle description, and direction of travel will be critical for responding patrol officers.
Businesses also have the right to dispute any bills for work they did not authorize or that was performed under false pretenses.
FULL REPORT:
http://www.bbb.org/spokane/business-reviews/fire-protection-consultants/allfire-equipment-services-in-coeur-d-alene-id-64174994?isbureau=Y&gid=1&gen=1&lid=1