Compiled by Zan Deery, Communications/Investigations
For the Week of 2/8/10
zan@spokane.bbb.org 800-356-1007 or 509-455-4200
www.bbb.org
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TIP NUMBER ONE
COLLEGE ADMISSIONS ASSISTANCE, LLC of TX Holds Presentations for College Bound Students and Parents, Requires Fee to Participate
COLLEGE ADMISSIONS ASSISTANCE LLC
(817) 289-3690
2225 E RANDOL MILL RD, STE 300
ARLINGTON, TX 76011
It’s that time of year when college bound students and their parents begin looking at additional ways to help apply for and finance a higher education. Tests are being taken, applications are being filled out, and potential schools are being visited. BBB wishes for people seeking additional help with this area to do their research before saying YES to an offer that charges a fee for services that assist your journey.
BBB complaints for the above-mentioned group reflect that parents of college-bound students are contacted by mail indicating that their child had been scheduled to participate in an educational group presentation followed by a personal interview.
The presentation focuses on how their program will save money to the parents by the organization testing the kids and assisting them in choosing a career, the right school, and apply for scholarships.
One consumer said "She told me it was $1,995 and when I ask if I could take the information home to think about it, she said NO. So I told her that I could not make a commitment then, that I would need more time. I asked her why I couldn't take time to think about it and get back to them later. She then told me that it was a once a year opportunity and if I did not sign up then I would have to wait another year and waste time on my daughter potential future."
The company responds by saying, "In order to keep our administrative costs and service fees low, we do only enroll families in our programs while we are at the workshop."
BBB ADVICE: Financial Aid for College Offers
Looking for money to pay for a college education? While scholarships, grants and loans are popular forms of financing, finding financing which is right for you and meets your needs can be confusing.
Some organizations send letters claiming to offer scholarships and requiring a small processing fee. According to financial aid directors at various colleges, it is not usual to request processing fees for scholarships. If you have questions about such offers, or need guidance, contact your school's guidance counselor or financial aid director.
If you are considering using the services of scholarship and grant search companies, it is important to know that these companies often advertise in newspapers, on television, through direct mailings and may even contact prospective students over the telephone. There is always an up-front fee involved which can range from $10 to hundreds or even thousands of dollars.
While the company may make the claim that the scholarships or grants are guaranteed, these companies technically cannot live up to such guarantees since, typically, they do not provide funding, nor are they in direct contact with any sources of funding. In exchange for the fee, respondents may receive nothing more than general information on finding funding or a list of possible sources of college funding. After purchasing the list, it is the student's responsibility to research and determine if they meet the criteria and apply for each scholarship or grant. Prospective students should understand that only the sources of funding can make any kind of guarantees.
Complaints filed with Better Business Bureaus across the nation allege disagreements over money-back guarantees, or other promises of refunds, and that listings are generic, rather than specific to the needs of the student as promised during the sale. Because refunds are often difficult, if not impossible, to obtain, complainants are not always satisfied with the companies' responses.
Scholarship and grant information is available free from school guidance counselors or school libraries. In addition, the Federal Consumer Information Center offers these free publications:
*Preparing Your Child For College, A Resource Book for Parents, order number 508D;
*All About Direct Loans which details four types of direct student education loans, order number 516D; and,
*Planning For College which contains strategies for planning, order number 507D.
To Order:
Write to S. James, Consumer Information Center-7C, PO Box 100, Pueblo, CO 81002; or send a fax to 719-948-9724; phone 719-948-4000; or order online from www.pueblo.gsa.gov
Another free publication: A Student Guide To Financial Aid is available from the U S Department of Education. Call 800-433-3243.
In addition, publications on obtaining scholarships and grants may also be available at your local bookstores.
Occasionally, some scholarship information firms offer a business opportunity offering the same services. For a fee of several hundred dollars or more plus yearly renewals, investors receive "training" materials on how to start their own business. Investors must market their own services to high school and college students. Problems arise when investors are not given specific territories, but operate anywhere regardless of others who may have already set up shop.
FULL BBB REPORT:
http://www.fortworth.bbb.org/commonreport.html?compid=222153102
TIP NUMBER TWO
GOVGRANTS.com Making Random and RUDE Calls to People Pitching Fake Grants/Loans and Posing as Phony Debt Collectors, too
Caller ID Showing 408-587-2163
This BBB received a report from a Brazil, IN woman stating she got a call from the above number stating they wanted her routing # so they could give her a $5,000 grant. She said NO. They stated they were from WA State, but didn’t specify. The IN woman stated that when she said NO they were instantly rude and started cursing her out.
At www.bbb.org, this 408# takes you to a BBB report about fake collection calls misusing the name US Cash Advance, a legitimate and good-standing company. According to reports received by BBB, this number is connected to a variety of scams. In this particular case, the scammers using this # were attempting an advance loan scam.
In other cases regarding this number, the scammers accuse the victim of defaulting on a payday loan and claim they are being sued. The phony debt collector threatens that, if the victim doesn’t pay as much as $1,000 immediately via wire or by providing bank account or credit card numbers, he or she will be arrested. The scammers often have the victim’s Social Security, old bank account numbers or driver’s license numbers as well as home addresses, employer information and even the names of personal friends and professional references.
BBB is unable to locate the persons responsible for these calls.
BBB offers the following advice to consumers if they receive a suspicious telephone call about advance fee loan/grant offers:
• Ask the lender to provide official documentation which substantiates the offer. Make CERTAIN, prior to agreeing, that any lender you deal with is properly licensed.
• Do not provide or confirm any bank account, credit card or other personal information over the phone until you have confirmed the legitimacy of the call.
• File a complaint with the Federal Trade Commission online if the caller is abusive, uses threats or otherwise violates federal telemarketing laws.
• File a complaint with BBB if you believe a loan agent is trying to scam you.
TIP NUMBER THREE
Bogus Health Insurance Companies
on Missouri Insurance Consumer Affairs Division’s Radar
Many Names Named in Action Shared by MO Dept. of Insurance
Jefferson, MO---If you've ever worked in an office or used a fax machine, you've probably seen the junk faxes:
"Low-cost quality health insurance!"
"Unbeatable rates on health coverage for your employees!"
More than a dozen companies who send these faxes and offer this service could face severe penalties and be shut down by the Missouri Department of Insurance. In documents filed the department has demanded that 14 companies and 12 individuals respond to charges that they have defrauded Missouri consumers.
The department has complaints from almost 150 consumers that paid
these companies for services that were advertised as insurance, using phrases like "PPO," "Group Health Plan" and "dependent coverage."
The plans these groups are selling are not the comprehensive insurance that customers were led to believe they were signing up for. Because of this deception, some customers were left with massive unpaid medical bills.
One consumer faced an unpaid medical bill of more than $60,000 after getting treatment. Another consumer paid nearly $2,000 for membership, then found out it didn't even cover flu shots. Others couldn't get refunds after canceling their coverage.
Most state laws distinguish between health insurance and discount medical plans. Insurers must be licensed, and discount medical plan providers must register.
The companies targeted in this MO action were neither licensed nor registered.
BBB ADVICE
Consumers considering a discount medical plan should use caution:
• Understand that these plans are not insurance. They are similar to discount clubs that offer reduced rates from certain providers.
• Check with the Department of Insurance to verify that the discount plan is registered.
• Before purchasing, verify advertised claims that specific doctors, hospitals, clinics, pharmacies and other providers offer discounts to members of the plan. Say no to any plan that won't give you a list of participating providers before you buy.
• Be suspicious of any deal that sounds too good to be true, such as "save 60 percent on health coverage."
• Don't pay a large up-front fee to join.
• Find out whether the fees you pay are refundable if you cancel.
• If you have problems with or suspicions about a medical discount plan, file a complaint with your state Department of Insurance.
TIP NUMBER FOUR
SCAM CALLS POSING AS BBB ON THE RISE
This BBB has recently had a series of fraudulent calls made in our area, misusing the BBB name. One day they say they are with the Spokane BBB, another time they are with the Tacoma BBB, they say they are with the BBB fraud division, etc. etc. Their story changes from day to day but the scam is still the same.
The following scenario is using a Jamaican# (876 area code):
SCENARIO
An Eastern WA man received a call this morning from a “Tony Washington”, Phone 876-894-9216, who claimed to be out of Brewster, WA. Tony told Randolph that he had WON: a $30,500,000 B of A check and a 2010 white Mercedes. Both were waiting for him, as soon as he paid a $500 processing fee.
Tony also had a woman supposedly from the “Washington BBB” call Randolph, but when she called him, he said he wanted to talk with the local BBB before speaking with her. That’s when he called his local and official BBB office.
BBB ADVICE
People need to be hyper-vigilant about these calls because they are on the rise, and BBBs are reporting such scam calls being made on a regular basis since the New Year.
Lottery Fraud Calls Using BBB Name
http://spokane.bbb.org/article/new-lottery-scam-fraudulently-claims-to-be-from-better-business-bureau-15007
Omar of Spokane Calling People Nationwide
http://spokane.bbb.org/article/omar-of-spokane-bbb-calling-nationwide-from-509-262-6679-stating-youve-won-not-14952
TIP NUMBER FIVE
“GRANDPARENT BAIL FROM JAIL” SCAM RESURFACES
Using 438-838-0759 and the Name “Richard Cohan”
This type of scam is particularly appalling because it victimizes grandparents who want nothing but to protect their grandkids.
This scam is commonly referred to as “The Grandparent Scam” or “The Emergency Scam,” and was listed second on the BBB’s Top 10 Scams of 2008. Typically, the scam begins with a phone call from a con artist posing as a grandchild. The voice is distressed, usually explaining an arrest or motor vehicle accident in Canada, and asking that his or her parents not be informed. The fraudster then requests money to be wired through a transfer company, often Western Union or MoneyGram. Phone numbers during these conversations are often listed as “unavailable.”
This type of scam is on the rise. In some cases, the scammers know the names of family members and manage a good impersonation. In others, they trick a grandparent into giving up a grandchild’s name. The callers often claim to be in Canada and ask that money be wired there. Sometimes, a third person gets in the act, pretending to be a police officer or bondsman to “confirm” the bogus story.
Here is a scenario reported to this BBB last week:
A local female resident received a call this morning, supposedly from her grandson. He claimed to be in jail in Canada, and told her that he needed $2000 to help pay for the car wreck that he and his buddy had been in (after they had a beer). The woman was very shaken up over this.
She asked the boy to name his other grandmother and he said he had to go because someone else had to use the phone. She verified 100% that the caller was not her grandson. The call came from 438-838-0759, and the scammer went by the name Richard Cohan.
BBB offers some tips to help detect this scam and avoid falling for it:
1. Try to verify the caller’s identity by asking personal questions a stranger couldn’t know, and don’t fill in the blanks for the scammer. For example:
Caller: "It's your granddaughter/grandson."
Grandparent: "Which one?"
Most likely, the scammer will then hang up.
2. Do whatever is necessary to confirm the real relative’s whereabouts. Call your grandchild’s home, school or work.
3. Don’t send money unless you have verified that your relative is really in trouble. If a caller asks for your bank account number or urges you to send money via Western Union or MoneyGram for any reason, that’s a good indication of a scam.
For anyone victimized by this type of “Emergency Scam,” the BBB recommends reporting the incident immediately to local police departments and Attorneys General offices. In the case of a request to wire money to Canada, the fraud should be reported to the CAFC by calling PhoneBusters toll-free hotline (1-888-495-8501) or filing a complaint on their website (www.phonebusters.com).
LATEST SWEEPSTAKE SCAM MISUSING NAME AND ADDRESS OF SPOKANE BUSINESS, NORLIFT, INC.
Sweepstakes Scam and Fake Check Notice Comes from “Online Gaming”
On February 8, 2010, it was brought to BBB's attention that this company's official name and address are being used to purport a sweepstakes scam using fake checks supposedly drawn on this company's account. The letter comes from “Online Gaming” and a check is enclosed for anywhere from $2,900 up.
You have not won anything and these checks are fake. If you work with the scammers and compromise any sensitive info, and/or attempt to cash and/or wire any of the funds, you are at 100% risk.
BBB spoke to the owner of Norlift who stated that he was aware of this scam and is working with authorities. This company and its owner are not affiliated with and have nothing to do with this scam.
If you have fallen victim to this scam, we urge you to file a police report with your local authorities.
ONE FOR THE GIPPER
WA ATTORNEY GENERAL RELEASES ITS
TOP 20 LIST OF COMPLAINT GETTERS FOR 2009
Collected Record # of Complaints about Collection Agencies
FOR IMMEDIATE RELEASE
Feb. 3, 2010
Office releases its Top 20 list of complaint categories
SEATTLE – The Attorney General’s Consumer Protection Division released its annual Top 20 list of consumer complaint categories for 2009.
Washington consumers filed more complaints about collection agencies with the Attorney General’s Office in 2009 than any other industry. Gripes about collection agencies have been rising in recent years but it took a single complaint to ultimately move the industry into pole position and bump telecommunications, which previously held the top spot for at least a decade.
Telecommunications, which primarily includes phone companies, rang up 1,670 complaints last year, down from 1,728 in 2008.
Collections agencies, meanwhile, garnered 1,671 complaints compared to 1,431 in 2008. That’s nearly 7 percent of the 24,928 written complaints the Consumer Resource Centers handled last year.
Complaints about cable networks and program distribution have also been a steady climber, moving to No. 4 last year with 1,465 complaints – more than twice as many as 2008, when the industry ranked No. 8. Lawsuits involving DIRECTV and DISH Network were a driving factor.
Retailers and auto sales rounded out the top five.
Complete List here: http://www.atg.wa.gov/complaintstats.aspx#tabletop202009