Compiled by Zan Deery, Communications/Investigations
7/20/09
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
BEST “CAN’T FOOL ME” CALL SCENARIO
from Federal Funds Administration aka NeverGiveItBack.com
Received a call from the # 202-280-2428. Caller ID reflected "out of area". This group stated that there is free money available to me. It quickly stated that money is being distributed to your area and anyone is entitled to receive $2,500 but it is on a first-come, first-served basis.
When BBB attempted to contact this number, it is a recorded message stating that this account is not accessible, and if you have an account, login to get further info. It does not state who you are calling, and ends the message by disconnecting.
BBB ADVICE ON “Free Cash” Pitches
You've probably seen the ads: "Free Money! Never Repay Cash Grants for Personal Needs, Medical Bills, Education, Business, Debt Consolidation..."
Ads like this claim that "foundations can be a better source for finance than banks" and "anyone can get an interest free cash grant." They encourage consumers to send a fee, with the promise that their financial needs and requirements will be matched with the most suitable private foundations. Or, they may promise to provide a list of available grants.
Obtaining a grant is a complicated process, requiring documentation and research. Although there may exist private foundations whose requirements are based on an individual's personal preference, the vast majority of grant-making foundations require that applicants for funds meet very specific guidelines that the foundation has established, and that the funds be used for specific projects that the foundation wishes to support.
The Better Business Bureau offers the following advice:
• Watch out for phrases like "free grant money." Grants do not have to be repaid; thus there is no need to use the word "free."
• Organizations do not usually give out grants for personal debt consolidation, or to pay for other personal needs. Grants are usually given only to serve a social good, such as bringing jobs to an area, training under-employed youth, preserving a bit of history, etc.
• Always remember to check out any company you plan to do business with by contacting the Better Business Bureau (BBB). Also check with a regional or state economic development office to see if they know of grant programs for which you might qualify.
• Visit your public library. Ask a librarian to help you find reference books describing foundations and the criteria they use in awarding grants.
• Be wary if you are asked to provide money up-front to an unknown company before the company will provide the services promised.
• If you are having financial problems, there are local non-profit credit counseling services who may be able to assist you with your problem at no charge.
TIP NUMBER TWO
UNDELIVERED PROMISES LEAD TO WORK-AT-HOME WORRIES
Regenesis 2X2 Fuels Questions and Concerns
Thanks to the WWA, OR and AK BBB for this Warning!
Regenesis 2X2
218 Main St Ste 241
Kirkland, WA 98033-6108
(800) 676-8530
www.regenesis2x2.com
DuPont, WA – July 15, 2009 – Better Business Bureau is warning Washington consumers of a new work-at-home, multi-level marketing opportunity called Regenesis 2X2. Since May 2009, BBB has received numerous inquiries and complaints about this Kirkland, WA–based company's business practices.
Complainants allege that the Regenesis System lures in prospects with guaranteed leads and promises of individuals or "recruits" working beneath them. Regenesis 2X2 also advertises high income potential as part of its promotions; on www.regenesis2x2.com, this company refers to itself as a "proven money making machine." However, after collecting an initial payment of $325 from potential participants, the company has left many frustrated as they wait for promises to be fulfilled.
Due to concerns with the nature of business, Regenesis 2X2 holds an "F" rating.
BBB ADVICE
The following may identify multi-level marketing, work-at-home scams. Employers:
• Make outlandish "success-story" claims about their product, "method" or business model. Ask the promoter of the plan to substantiate claims with real evidence.
• Guarantee huge earnings and promise thousands of dollars for little work. Keep in mind that unethical companies fabricate testimonials and often provide false references. Be especially cautious with those who ask you to purchase expensive kits or inventory up-front. Don't fall for high-pressure gimmicks; never pay for or sign any contracts until you have researched the business opportunity.
• Promise high commissions for recruiting additional distributors or claim you will make more money if more sales workers are enlisted beneath you. If the focus is on company growth, not on products or services, this may be an illegal pyramid scheme. Report criminal activities to the Federal Trade Commission and the Washington Attorney General.
TIP NUMBER THREE
CASH ADVANCE OFFER LETTERS from PIN 507.com BEING SENT TO REGIONAL CONSUMERS
PIN 507.com
1100 Hammond Dr., Suite 410-202
Atlanta, GA 30328
Consumers are receiving letters from a group called PIN 507 aka www.pin507.com The letter states: “After reviewing your information from the previous cash advance that you requested from our site, we are pleased to inform you that you have been pre-qualified for a $500 payday loan to be directly deposited into your bank account as early as tomorrow.” It states that with someone who has already been pre-approved, all you have to do is go to their site and enter your PIN # they give you. They state that “final payment is dependent on the completion of the claim and verification of identity and banking information.”
BBB ADVICE
Two other companies in the BBB system share the address displayed on PIN 507’s Privacy Policy page: Amnesty Financial and TrifectaCard, both of which currently have the BBB’s lowest rating of F. Check at: www.bbb.org
PIN 507 is a subsidiary/affiliate of this group. Amnesty Financial states on its web site that it is "a marketing and advertising agency only. Amnestyfinancial.com is not a mortgage broker or lender, rather it is a consumer marketplace used to simplify the process of finding local service providers. To make a match, we create a simple profile of you based on the information you submit, and direct you to one of our participating service providers, of which not all can provide up to $1,500. You are under no obligation to pursue business with any of the participating service providers in our network. We encourage you to review each service carefully before electing to do business with them."
We strongly urge you to read all terms and conditions of any agreement, ask questions about the interest rate on your loan, etc. PRIOR to signing up for the loan. Many times your interest rate on such a loan can be well over the amount you are able to afford. Do your homework before agreeing!
TIP NUMBER FOUR
VACATION TIPS: BEWARE OF SCAMS
Airlines are giving some of the best deals possible right now on flights, and that also means that many people are being approached with travel/vacation deals that may seem too good to be true. Before you go with ANY travel offer that involves a down payment, signing a contract, or having to attend a presentation, etc, START WITH TRUST and check with BBB first for a report on the company or offer.
BBB also provides the following travel tips to protect against travel scams:
1) Pay with a credit card and avoid deals that require you to book 60 days in advance. Credit card companies may allow consumers to dispute a charge within 60 days of purchase. Representatives from eBay also caution consumers against paying with personal checks and strongly recommend paying with a method such as PayPal that has built-in protection measures. Be careful with your credit card, if you didn’t initiate the call, don’t give the information.
2) Ask detailed questions and get answers in writing. Get names of airlines, hotels, car rental companies and travel providers. Consider contacting these businesses directly to verify arrangements. Always ask for confirmation of your travel arrangements in writing and ensure you receive copies of cancellation and refund policies.
3) Online security. Before making a purchase online, make sure the Web address has an “s” in “https” and look for a lock box next to the Web address bar or in the bottom right of the window.
4) Verify legitimacy. Verify the business is properly licensed. Get a BBB Reliability Report at www.bbb.org.
5) Contact BBB if you are a victim of fraud. Your BBB helps consumers and businesses through complaint and dispute resolution services. Victims of travel-related scams can file a complaint at www.bbb.org. Ultimately, consumer complaints expose bad businesses and help other consumers avoid becoming victims of vacation fraud.
TIP NUMBER FIVE
GRANDPARENT SCAM NOW TARGETING MILTARY PERSONNEL
In October of 2008, BBB issued a news release on the Grandparent scam: http://www.bbb.org/us/article/bbb-alert-senior-citizens-nationwide-report-losing-thousands-of-dollars-to-telephone-scam-7155
BBB has just been made aware of a new take on this scam involving military personnel. Here’s how the scenario goes:
Scammers are now using social networking sites to contact relatives of deployed troops -- usually grandparents -- pretending to be the service member coming home on leave to surprise his/her parents. The scammers then fake a story that their car has broken down en route, and ask the grandparents to wire money to help fix the car. Once they wire the money, they have become victimized, and wired funds are unable to be recovered.
BBB ADVICE
Know about this scenario, and warn others, especially anyone you know who is in the military or who has someone in the military.