Compiled by Zan Deery, Communications/Investigations
9/21/09
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
Service Protection Direct aka Protection Direct of MO Lacks Customer Service RE: Extended Warranty Contract Options
Service Protection Direct
(800) 986-3609
300 N Tucker Blvd
Saint Louis, MO 63101-1914
DBAs
Advanced Assurance
Dealer Warranty Program
Protection Direct
SPD Warranty Program
Txen Partners, LLC
United Warranty Solutions
Service Protection Program
Your BBB has recently received regular inquiries regarding mailings and pitches made by extended warranty service contracts, mostly via mail. One such company is the above-mentioned group which has received numerous complaints at the BBB St. Louis.
Complainants primarily allege misleading sales or advertising practices, in many cases claiming that they were led to believe that this firm was associated with the manufacturer or dealer, when they are not, difficulty canceling contracts and obtaining refunds, that the firm failed to cover needed repairs, poor customer service and that they received harassing sales calls or solicitations, even after the consumer requested that they cease.
BBB ADVICE: Know the Facts about Auto Service Contracts
If you are shopping for a new or used car, you may be encouraged to buy an auto service contract. Auto service contracts have become increasingly popular as a way to provide consumers a means to deal with unforseen vehicle repair problems. Before signing on the dotted line, BBB urges consumers to be sure they understand the terms of the contract and know who is responsible for providing the coverage.
According to the Federal Trade Commission, an auto service contract is a promise to perform (or pay for) certain repairs or service. Sometimes called an "extended warranty," a service contract is not a warranty as defined by federal law. A service contract may be arranged at any time and always costs extra; a warranty comes with a new car and is included in the original price. This separate and additional cost distinguishes a service contract from a warranty.
Before deciding whether to buy an auto services contract, BBB suggests you ask the following questions:
Who backs the service contract? It may be the manufacturer, dealer, or an independent company. Many service contracts sold by dealers are handled by independent companies called administrators. Administrators act as claims adjusters, authorizing the payment of claims to any dealers under the contract.
What's the cost of the auto service contract? Usually, the price of the service contract is based on the car make, model, condition (new or used), depth of coverage and length of contract. The cost of the service contract can range from several hundred dollars to more than $2,000. In addition, you may need to pay a deductible each time your car is serviced or repaired.
What is covered and not covered? Few auto service contracts cover all repairs. Watch out for absolute exclusions that deny coverage for any reasons. For instance, if the contract specifies that only "mechanical breakdowns" will be covered, problems caused by "normal wear and tear" may be excluded.
How are claims handled? When your car needs to be repaired or serviced, some service contracts permit you to choose among several service dealers or authorized repair centers. Others require the car owner to return the vehicle to the selling dealer for service. Find out if you will need prior authorization from the contract provider for any repair work or towing services. Ask how long it will take to obtain authorization and whether you can get authorization outside of normal business hours.
What are your responsibilities? Under the contract, you may have to follow all the manufacturer's recommendations for routine maintenance, such as oil and spark plug changes. Failure to do so could void the contract. To prove you have maintained the car properly, keep detailed records, including receipts. Find out if the contract prohibits you from taking the car to an independent station for routine maintenance or performing the work yourself. The contract may specify that the selling dealer is the only authorized facility for servicing the car.
What is the length of the service contract? If the service contract lasts longer than you expect to own the car, find out if it can be transferred when you sell the car, whether there's a fee, or if a shorter contract is available.
Consumers should check with BBB for a reliability report on the business offering the contract, and with any regulatory agencies that oversee this type of company. Make sure you read and thoroughly understand the agreement and check that all verbal promises have been included. Do not sign a contract with blank spaces that could be altered or changed. Finally, once the contract is signed, keep a copy of it for your records.
TIP NUMBER TWO
Donald Chouinard, His Companies, DC Wealth Management, Inc. & DC Associates, Inc. of Kalispell Bilked Investors Out of Over $1.5 Million
Issued September 18, 2009 by MT Commissioner of Securities & Insurance
HELENA, MT - Montana Commissioner of Securities and Insurance announced that it shut down an alleged Ponzi scheme operated by a Kalispell man who bilked investors out of at least $1.5 million, including some of his own friends.
The agency filed a Notice of Proposed Agency Action and issued a Temporary Cease and Desist Order against a Kalispell securities salesperson, Donald Chouinard, and his companies, DC Wealth Management, Inc., and DC Associates, Inc. Commissioner Lindeen's Cease and Desist Order prohibits Chouinard and his companies from committing further violations of the Securities Act of Montana and the Montana Insurance Code.
Commissioner Lindeen's action results from an extensive investigation that was conducted after consumers complained to her office after investing in what they thought was a "day-trading" program, but instead became a Ponzi scheme in which investors got bogus proceeds taken from money contributed by newer investors. In particular, Chouinard convinced one investor to obtain a $100,000 loan and invest with him because he could guarantee a 40% return in 30 days.† Instead of investing the $100,000 in the "day-trading" program, Chouinard used $50,000 to pay off a previous investor, deposited $25,000 into his personal joint-checking account, and gave the other $25,000 to his attorney.
The agency also alleges that Chouinard, who was a broker/dealer salesperson and investment adviser for LPL Financial Corporation (LPL), traded in their LPL accounts without authorization, traded excessively, and forged their signatures to authorize the trades. The excessive trades resulted in nearly $250,000 in commissions for Chouinard.
ADVICE from MT Dept of Securities and Insurance Office
If a broker does excessive buying and selling within your investment account, you may end up paying more in commissions than you earn on your investment. It's a good idea to regularly check your monthly brokerage statements to see what you are earning, what commissions you are paying, and what changes there have been in your account holdings.
Chouinard failed to provide the investors with statements or tax documents for their "day-trading" investments. Instead, he routinely informed the Complainants about the values of their investments orally or via email. The complaints allege Chouinard also misrepresented the values of their investments-in one case by as much as 10,000%.
Commissioner Lindeen's complaint charges Chouinard and his companies with violating the antifraud provisions of the Montana Securities Act. Commissioner Lindeen's office is seeking to revoke Chouinard's Montana securities license and suspend or revoke Chouinard's Montana insurance producer license, as well as fines and restitution for investors including 10% interest from the dates of the wrong-doing. Lindeen's office said the penalties in the case could amount to millions of dollars, because the fine for violating the Securities Act is $5,000 per violation and the pleading outlines dozens of violations.
Montanans who may have been solicited by or have invested with Donald Chouinard are asked to immediately report it by calling toll-free at 800-332-6148 or in Helena at 444-2040.
TIP NUMBER THREE
LATEST SECRET SHOPPING SCAM ON BBB RADAR: MERCHANT MONITORS LTD. OF OH Calls itself a ‘local Secret Shoppers Agency’
THANKS TO BBB OH FOR THIS WARNING
Personal letters and checks to consumers ask them to pose as potential customers to an assigned place of business to evaluate the effectiveness, efficiency and customer service of some retailers. A small amount of the money is to be kept as a training fee.
Merchant Monitors Ltd. has sent personal letters to consumers nationwide informing them that they have been chosen to represent the company as a secret shopper and that they fit the criteria of and individual who is prepared to supplement their income by taking advantage of the opportunity. The letter also stated that this is a ‘paid’ training assignment and to contact the task coordinator for detailed instructions. The telephone number included is registered out of Ontario, Canada.
The job assignment states that the consumer would pose as a potential customer to the assigned place of business in order to evaluate the effectiveness, efficiency and customer service of the particular business establishment and to note their experience on a Customer Service Evaluation form that was included in the letter.
Consumers received a check in the amount of $4,970.00 and had to complete purchases at Wal-Mart, JC Penney, Travelex and Money Gram. The consumer is to deposit the check into their bank account and then money should be withdrawn and used for purchases at the assigned stores as stated in the letter. Part of this assignment include using a Travelex and Money Gram service to wire as much as a couple thousand dollars back to their ‘employer’ and to evaluate the effectiveness and efficiency of the service. Consumers could keep $300 as payment for this training assignment.
Merchant Monitors Ltd. is using a contact address of 5019 Victor Drive, Medina, OH, address. This address does not belong to this company, but belongs to Medina Family Chiropractic.
This is a classic scenario of a scam involving fake checks. The scammer typically requires the victim to deposit a check into their bank account then wire money back to the scammers. While the check may initially be deposited into the victim’s bank account – leading to a false sense of security – the fake check will ultimately be discovered within a couple of weeks and the bank will take the funds out of their account to cover the loss. The victim of the scam is out whatever money they sent to the scammers and be responsible for paying the bank back if their account is overdrawn.
The following information if provided by the Federal Trade Commission to protect yourself against counterfeit check scams:
1. Throw away any offer that asks you to pay for a prize or a gift. If it’s free or a gift, you shouldn’t have to pay for it. Free is free.
2. Resist the urge to enter foreign lotteries. It’s illegal to play a foreign lottery through the mail or the telephone, and most foreign lottery solicitations are phony.
3. Know who you’re dealing with, and never wire money to strangers.
4. If you’re selling something, don’t accept a check for more than the selling price, no matter how tempting the offer or how convincing the story. Ask the buyer to write the check for the correct amount. If the buyer refuses to send the correct amount, return the check. Don’t send the merchandise.
5. As a seller, you can suggest an alternative way for the buyer to pay, like an escrow service or online payment service. There may be a charge for an escrow service. If the buyer insists on using a particular escrow or online payment service you’ve never heard of, check it out. Visit its website, and read its terms of agreement and privacy policy. Call the customer service line. If there isn’t one — or if you call and can’t get answers about the service’s reliability — don’t use the service. To learn more about escrow services and online payment systems, visit www.ftc.gov/onlineshopping
6. If you accept payment by check, ask for a check drawn on a local bank, or a bank with a local branch. That way, you can make a personal visit to make sure the check is valid. If that’s not possible, call the bank where the check was purchased, and ask if it is valid. Get the bank’s phone number from directory assistance or an Internet site that you know and trust, not from the check or from the person who gave you the check.
7. If the buyer insists that you wire back funds, end the transaction immediately. Legitimate buyers don’t pressure you to send money by wire transfer services. In addition, you have little recourse if there’s a problem with a wire transaction.
8. Resist any pressure to “act now.” If the buyer’s offer is good now, it should be good after the check clears.
If you think you are a victim and have been targeted by a counterfeit check scam, report it to the following agencies:
*Federal Trade Commission, www.ftc.gov or 877-FTC-HELP (877-382-4357)
*U.S. Postal Inspection Service Visit: www.usps.gov/websites/depart/inspect
or call your local post office. The number is in the Blue Pages of your local telephone directory.
*Your state or local consumer protection agencies Visit www.naag.org for a list of state Attorneys General, or check the Blue Pages of your local telephone directory for appropriate phone numbers.
TIP NUMBER FOUR
Givenright Research, Inc. of WA ADOPTION SEARCH & REUNION SERVICES CO. ABANDONS CUSTOMERS
Complainants Still Looking For Answers
2211 S Star Lake Rd Apt 27-103
Federal Way, WA 98003-2869
(206) 653-7602
www.givenright.com
Thanks to WWA, AK and OR BBB for this Warning
DuPont, Wash. – Sept. 16, 2009 – Adoptees, birth parents and other relatives in search of their biological kin are complaining against GivenRight Research Inc, a genealogy company that promises to reunite long-lost family members.
BBB serving Alaska, Oregon, and Western Washington has processed 14 complaintson the company in the last 12 months. Due to the seriousness of the complaints, and the 9 unanswered or unresolved complaints, GivenRight Research Inc has a BBB Rating of "F": www.bbb.org/western-washington/business-reviews/genealogists/givenright-research-in-federal-way-wa-22015770?&nostat&gid=0&gen=0&lid=1.
The company's motto is "No Find, No Fee." However, complainants assert that when they entered into a contract and paid the company a fee to find an estranged relative, the results were not sent to them or the information received was inconclusive. On www.givenright.com, the company's disclaimer states "we have no-find no-fee available by contract only, otherwise your fees are set forth whether we find your party or not." The disclaimer also states "there are NO REFUNDS unless we feel that to do so [sic]."
According to Washington state licensing records, GivenRight Research Inc is registered to Jennifer K. Robinson. Although the company appears to be located in Federal Way, their Web site states that they specialize in Texas adoption searches; yet complaints received by BBB stem from across the Unites States.
To file a complaint with your BBB, against GivenRight Research Inc or another genealogist, visit www.bbb.org.
TIP NUMBER FIVE
TRAVELERS: Be Aware of International Calling Fees if Using Out of Country Payphones or Hotel/Motel Phones
Slip is in Hard to Find Terms and Conditions Using 3rd Party Accounts
Ready to travel out of country? Maybe your cell phone might not work in certain areas, or you may need to use a hotel/motel phone or payphone in lieu of any other devices. If you have to call long distance and/or swipe your credit card to use the phone, be aware that many third-party phone options, especially out of country, can charge hefty fees for services. Many times the terms and conditions for using such phones might not be posted, might be relayed to you when you begin your calling transaction (as part of the set-up or calling steps), and/or in some cases might not be revealed at all, and may end up being hidden (in which case, you may wish to choose to not use the service at all.) There are also times you might not even have revealed to you the phone company you are or will be using until you start getting charges on your phone bill when you get home!
One such company in this industry that generates complaints via BBB is BBG Communications, which charges a pretty penny for calls made outside the United States. Complaints reflect that customers are billed big bucks for short calls outside the states with no clear notice or explanation of charges. Customers also complain that it is hard to reach the company to speak with them about issues.
The company states that if you use a BBG lobby phone outside the states, you should dial zero to find out the rate before making a call.
How do you avoid hidden fees and/or exorbitant charges while traveling? The best way is to purchase a reliable calling card prior to travel. Otherwise, here are some additional tips courtesy of the Baltimore Sun News:
• Skype! This is a free service permitting calls from computer-to-computer, requires only a microphone and is probably one of the best options for keeping communication lines open while traveling.
• Talk to your cell phone provider (and if you’re up for a new plan, be sure to check with our directory) about your options using your own phone.
Not all phones work in all international locations and without advanced planning, could generate very expensive roaming charges.
• Ask if they can “pro-rate” an international plan for the length of time of your trip. This is a good option because your cell number remains the same and you have all the your saved names/numbers programmed in your phone! BEWARE! Flashing an expensive cell phone is the same as flashing your best watch or a diamond bracelet – a TARGET for thieves! Consider downsizing before you travel.
• Rent a phone (when you land at the airport or online) which means you are using a local phone with local cell phone provider.
o This option is generally good only if you are staying a few weeks and not traveling to other countries.
o You will probably be charged by the day or week plus additional calling minute charges.
o Incoming calls are usually lower than outgoing calls so have your family/friends call you!
o Don’t let ‘em sell you a year long contract for a temporary phone!
• Purchase a local phone with a domestic (local) calling plan. This is great option for prolonged trips like study abroad.
• Consumers who plan to use an iPhone abroad, visit wireless.att.com before travel. Otherwise, those great gadgets and apps could generate startling and unexpected charges.