Published: February 05, 2008 12:31 pm         

BBB consumer/business tips

February 2008

Contacts: Michael Coil at (219) 918-2060 or Marjorie Stephens at (219) 918-2067

This list is current as of Feb. 1, 2008. Readers should take into consideration the importance of the practice in question and the total performance of the company. For complete information, please visit www.bbb.org.

If you hear of something that sounds too good to be true, give us a call first and we’ll check it out for you. Consumers and businesses are often our direct link to scams occurring in and around northern Indiana.

1. The overpayment scam is back with a vengeance! It works like this. Consumers put something up for sale, usually online. The crook responds and offers to pay more than the asking price, but the consumer is asked to wire the difference to someone else, which is routed back to the crook. An Indiana consumer advertised a hutch online. She had doubts and thought it might be a scam. Two Bloomington students were taken.

2. Clear Your Debt promises to negotiate settlements with creditors. They have also claimed to be a "Christian" organization, making consumers feel comfortable in turning over banking and credit information. An Indiana consumer paid $260 monthly for 6 months. The company even instructed her to hang up on creditors. This Texas company has the BBB’s lowest rating. Thanks to the Austin BBB for their investigation.

3. Father’s Promised Land Properties offers to help consumers stay out of foreclosure. When they applied for accreditation through the BBB, their advertising was reviewed, and information was requested regarding the company, principals, operations, fee structure, "money-back guarantee," and references. Because of the company’s lack of cooperation in providing this information, accreditation was denied, and the company is currently receiving the BBB’s lowest rating.

4. Homeless American Veterans claims to help homeless vets find housing in Indiana. Giving a post office box as an address, callers are also given a tax ID number that is not registered with the IRS. The organization is not registered as an Indiana corporation. Calls to the organization are forwarded to a voice mailbox, which always seems to be full.

5. Canadian Health & Care Mall is selling prescription drugs by email. They give Louisiana and Canadian addresses. They aren’t there. They claim to be a licensed pharmacy. They aren’t. They give names of doctors and universities with which they are affiliated. The BBB checked. The universities say all claims are false. The FDA advises against purchasing from foreign websites. Thanks to the Louisiana BBB for their investigation.

6. Summit Capital is calling Indiana consumers offering a new medical card. The caller asks for banking info. Caught off guard, one Indianapolis senior gave the caller his account numbers. Now he has to go through the trouble of changing his accounts. This Florida company has the BBB’s lowest rating.

7. G F Services promises federal, state and private foundation grants and scholarships. An Indiana consumer sent her $469 processing fee and received nothing. The BBB knows of no one who has actually received a grant from this company. This Florida company has the BBB’s lowest rating.

8. G A Financial is dropping flyers at Hoosiers’ homes, claiming to offer debt consolidation loans, ranging from $1,000 to $300,000. There is a $35 up-front fee. This company is not properly licensed or bonded in California, where the company is located. An Indiana consumer received the flyer and decided to check them out with the BBB. Good for her! GA has our lowest rating.

9. New Millennium Bank offers secured Visa and MasterCard credit cards for individuals wishing to establish or repair their credit. After paying $39, the consumer is asked to send between $300 and $5,000 to secure the account. When consumers complain, the company refers to the signed agreement. 205 complaints have been filed against this NJ company, and they have the BBB’s lowest rating.

10. Another email scam is stating, "It is by the grace of God that I write you…" "Rita Harry," the sender, goes on to say that her husband worked for Texaco for 20 years, depositing 8.5 million pounds in a "Financial House" in Europe. He died in 2003, and Rita is in a Russian hospital with cancer. Consumers who respond are asked for bank account info so money can be deposited in their account, allowing the consumer to "fund churches, orphanages and widows. Once the account info is given, "Rita" wipes you out!

11. Other email scams continue to abound. Have you received anything from the IRS about a refund? From the BBB about a complaint? Or an business, organization, or government agency with an established or reliable record? Beware! It’s another scam. It’s been happening to numerous business owners and consumers across the country, including Indiana.

When in doubt, check it out…..on the other hand, play it safe. Always check before buying or signing any contract.