Utah BBB Blog

These scammers have updated their plea, now they want to get money from within the U.S., instead of Nigeria or Iraq.

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This morning, at home, I received a call from Lube Doc, a lube shop located in Orem, Utah. It was the owner of the firm, Brent Norton, calling to thank my husband for bringing our car into their shop a couple days earlier.

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Inventing a new office in the State of Utah is one way to try to scam consumers out of their hard-earned money!

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Have you wondered where the scam artists get all that information to send you the email and your credit card number. Here's an email with some insight!

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We’re working with a University of Utah honors class to help the BBB develop general information for our reports on specific industries. Twenty-one industries have been chosen and these students will receive complaints (all personal information will be redacted and they’ll sign confidentiality agreements with the BBB), statistics, and a list of businesses in that industry in our database (accredited and non-accredited businesses).

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More spam in your email box? It's National Cybersecurity Awareness Month. Together we can make it go away!

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The email below was forwarded to me with this question: Are there really people dumb enough to be fooled by this? Since when does the FBI send emails saying, "get back to us if you don't want us to arrest you"?

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Each day we get three or four emails from consumers as a result of our “scam” button on our home page, www.utah.bbb.org. Over the past year they’ve become repetitive, so let’s talk about this again.

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The numbers are staggering: complaints are up 35% compared to the same time period last year. In the first half of this year we received more than 10,000 complaints from consumers across the United States about Utah companies (29% of the complaints come from Utahns).

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I order things on the Internet quite frequently. I think the convenience of having that package delivered is sure beats driving to three or four stores to find what I want. For instance, I went to an outdoor concert last week and after sitting for two hours on the ground, we decided that we needed those short camp chairs – the ones that are about 9” off the ground. Sounds like an easy thing to find – but three stores later we hadn’t found anything we liked or imagined.

We went home and I surfed the Internet and, lo and behold (in under five minutes) – the chairs we wanted were available online. The company also has store delivery, so I can have them delivered to the store and pay for my gas versus shipping charges to my door if I like(the company is only a couple miles away). And, the company has an “A” rating with the BBB.

However, for many consumers ordering things over the Internet, their experience turns out to be very costly. Consumers of 4 Wheel Supply, Inc., out of Eagle Mountain, Utah, have experienced this pain. The company sells accessories and parts for trucks. The costs involved are between $130 and $350. Consumers report to the BBB that they have ordered items and never received them.

Some consumers state that they are contacting their credit card company to dispute the charges and get their money back; others paid with a debit card – so they are unable to get a refund without 4 Wheel Supply, Inc. issuing it.

The Federal Trade Commission does have a rule that applies to these complaints—the Mail Order Rule. This rule, which applies to Internet transactions, requires that a company that states they can ship an item in a certain time frame, do so, and if there is no time frame stated it should be shipped within 30 days. I think some consumers would think 30 days is too long, but if it is back ordered or drop-shipped from another company, that time might be necessary.

The BBB constantly warns consumers to check out companies before purchasing with them. So, the next time you want to order something online – go to www.bbb.org first!

Now that the warm weather has returned, the flyers left on my door and door-to-door sales people have come out of the woodwork.  The BBB regularly reminds consumers to do their homework before deciding to do business with any company, whether you’re going to them, or they’re coming to your door.  This time we’d like to offer some tips to the businesses that are coming to the doors of consumers in Utah.

• If you are going door-to-door in Utah it is very likely that you’ll be required to have a business license in each community.  Check with the city to see what licensing or registration is required.  Find out if there are limitations such as time-frames when you can go door-to-door, what “no soliciting” means (most cities have laws that you should not knock on that door!) if it is on the door and make sure you have an accurate map so you know what community you are walking in.

• Have some form of identification from the company you work for that you can show the consumer. 

• Don’t be offended if the person doesn’t open the door or if they tell you they aren’t interested.  I’m sure you’ve been told that not everyone will want to hear your pitch.

• If the customer says that they only have a certain amount of time to talk to you, please respect their schedule.  Arrange to come back if you can’t make your presentation in that short amount of time.

• Don’t pressure any consumer.  Treat the person as you would want to be treated.  If the consumer says no, don’t push them to accept the offer.  That’s when complaints are filed that sales people are pushy.  ‘No’ means ‘go away!’

• Tell the truth.  Only make claims that are true and can be substantiated.  The consumer should ask you to write down any claims not in the contract and initial those claims, so be honest.

• If you don’t feel good about what you’re telling the consumer, find another job.  Don’t say something you know isn’t true or verifiable.

Each year we receive hundreds of complaints from consumers who feel that they were pressured into signing a contract.  Make sure that you are not the sales person who gets that complaint against them.

The Better Business Bureau (BBB) has gotten quite a few calls this week about a new “Senior Enhancement Program.”  We don’t know exactly what it is, because it’s savvy seniors who called us instead of calling the company.  But, here’s what we do know:

They want to meet with seniors and state that they might be eligible for $400 a month, just for being a senior citizen. 

What’s the scam you ask?  Well, it could be a company trying to get seniors to sell them something.  Or, it could be worse: a scam artist trying to commit ID theft by asking for personal information (in order to get the $400 – which would be non-existent).

Be as smart as the consumers who have called us today – don’t give out any personal information, realize that if it sounds too good to be true it probably is, and remember you don’t get anything for free!

Report questionable offers such as these to the BBB – www.bbb.org, 801-892-6009 or 1-800-456-3907.

For nearly 100 years, now, the Better Business Bureau (BBB) has worked with businesses to help them to regulate themselves.  More and more over the past few years it appears that companies are popping up with the sole purpose of scamming people.  They just want the cold hard cash from hard-working Americans. 

About five years ago the BBB noticed a couple companies that were selling diet products using a negative option.  They sold their products via the Internet and charged consumers a low up-front fee (usually under $5) and then hit the consumers with a monthly fee (usually somewhere around $70 - $90) after a short trial period.  Two of the first companies that we noticed were Ultralife Fitness and JAB Ventures LLC.  Both the Utah Division of Consumer Protection and the Federal Trade Commission  took action against these companies.

Unfortunately, there are now hundreds of the same types of offers out there – they include diet pills (hoodia, acai berry, amla berry and green tea to name a few), offers to make money using Google, and obtaining government grants.  We issued a warning about these offers, but the complaints keep pouring into BBBs across the country. 

The companies use a trial offer as the hook to get consumers to bite and give their credit or debit account number.  They hide the terms and conditions down at the bottom of the page (or worse yet use only a link), so that the only money the consumer thinks they’ll “lose” if it isn’t a legitimate offer is the couple bucks that they are paying to get a “free” CD or bottle of pills or whatever.  In reality, consumers can lose hundreds of dollars if they aren’t careful!

One of the companies doing this is googlemoneytree.com.  This company is located in Utah.  The State of Texas recently asked for a temporary restraining order against this company and several other companies, and Jonathan Eborn individually (collectively known as the defendants).

The State of Texas alleges that the “defendants are engaged in an elaborate scheme designed to deceive consumers so that they will sign up for defendants’ work from home program.”  The full text can be accessed on the State of Texas’s website. 

The Better Business Bureau system has hundreds of thousands of reports on companies across the United States and Canada (www.bbb.org), which can be accessed 24/7.  Yet consumers are still being taken advantage of each day because they didn’t check our reports.  If there was one thing I could remind consumers to do it would be to check out each company BEFORE you do business.  That goes for online sales and business you conduct face to face. 

Payday loans are a hot item all over the country.  Over the past several years the interest rates that are being charged for these loans have been the subject of lots of controversy, resulting in their being outlawed or limited in some states, counties, or cities.

The BBB of Utah has accredited seven payday lenders.  These companies have met the BBB’s accreditation standards.  In 2008, only one complaint was filed against these seven companies. 

Unfortunately, it’s the companies that aren’t accredited that are generating complaints.  We have two payday lending companies that are causing us great concern.

The first, 247advances.com, advertises that it has an office in Utah, when in fact the company is not located in Utah.  The company has informed the BBB that they are based out of Malta. They do not have an address in the United States, therefore the BBB is unable to help consumers with complaints. To date we have 18 complaints where customers can not get their issues resolved. 

One customer reports this response from the company “As was clearly explained in the loan agreement - we do not discuss terms over the telephone, in terms of payment, on your scheduled due date you have 2 options, you may extend the loan by paying the $74 interest only, or repay the full balance of $274 to close the account. All payments will be taken from the same checking account that the loan is sent to. When you wish to pay the full balance, please advise us via the website at least 3 days prior to the pay date when you wish to make the payment. If we do not receive a pay off request, we will extend the loan, a further $74 interest charge will be incurred and you will have the same options on the following pay date. We do not offer payment plans, installments or partial payments. Kind regards, Customer Services.”

The customer can’t call the company—the only option she has is to keep emailing them.  And note that there are no partial payments, the loan must be paid in full.

The other payday lending company of current concern goes by several names, outbackcash.com, Together Cash, ezcashmedia.com and Red River Ventures.  This payday lender states on their website that they are "a wholly Native American owned business operating within the exterior boundaries of the Cheyenne River Sioux Reservation, a sovereign nation located within the United States of America."  The location in Utah is not a physical address, therefore all complaints are being transferred to the BBB serving South Dakota.  Consumers should be aware that this company may not be required to follow local, state or even federal laws.

It seems that payday lenders are using Utah as a fictitious address to reassure consumers that they are a good company to do business with.  The BBB urges consumers to check out companies prior to doing business with them.  Spend five minutes now checking with the BBB, instead of hours later trying to fix a problem.  However, if you do encounter a problem, file a complaint. 
 

Internet payday lending can prove particularly troublesome, according to a November 2004 study by the Consumer Federation of America. Consumers are encouraged to apply for and receive loan funds deposited overnight in their bank accounts by filling out online applications and/or faxing applications and support documents. In addition to the high credit costs, which may not be openly disclosed, the study found that consumers who shop for payday loans online face other challenges:

• Lenders may be hard to locate or impossible to contact. Some hide behind anonymous domain registrations or may be located outside the U.S. The borrower can face difficulties communicating with Web lenders regarding any questions they may have or to resolve disputes that may arise.
• Internet payday lenders can bypass state usury laws and consumer protections by locating in states with lax regulations. They can make loans without complying with the licensing requirements or other protections of the borrower's home state.
• Completing online payday loan applications can expose the borrower to privacy and security risks if the lender does not abide by strict privacy policies or the Web site is not secure.

Whether you agree or disagree about whether payday lenders should be allowed to operate or charge the interest rates they do, consumers are using them every day because they can’t get loans anywhere else.  Perhaps there needs to be a better system, ensuring lower rates or better regulations.  But, until that happens – please check with the BBB on your source for a loan before you do business with them.

I’m sure you’ve seen the news reports this week about the outbreak of swine flu in Mexico and that it has been confirmed in the U.S., in at least 11 states. Janet Napolitano, the Secretary of the Department of Homeland Security, has declared a public heath emergency.

Anytime there is a global headline of a pandemic or emergency it attracts attention and people want as much information as possible to protect their families. Scammers know this and prey on these emotions to lure you into becoming a victim.

Schemes could be in the form of malware or spyware that gets downloaded onto your computer when you open an email about swine flu or it could be someone trying to scam you out of spending money to protect yourself. There are scammers selling a “Swine Flu Survival Guide” document and online pharmacies selling “swine flu vaccines.”

Don’t become a victim:

Avoid opening email from an unknown source and do not click any links in the body of an email or open any attachments. Be safe – just delete it!

Make sure your anti-virus and anti-spyware software is up-to-date and all operating system security patches have been installed.

Don’t believe online offers for vaccinations against swine flu, if you have symptoms, call your doctor.

Always rely on trusted sources for information such as the Centers for Disease Control and Prevention (CDC). Posts are at: www.cdc.gov/swineflu.

Always do business with BBB Accredited Businesses, search our Accredited Business Directory.

Fears of a pandemic are not new to us, if you remember in 2003 an outbreak of Severe Acute Respiratory Syndrome (SARS) occurred, and in 2006 bird flu was a concern. Hopefully this too shall pass and we will rely on the experts to decide what we need to do to prepare if it does not. In the meantime, make sure to exercise extreme caution on the internet or in your inbox relating to swine flu.

Each day I talk to consumers who have dealt with a company that they now have a problem with and need the BBBs assistance to resolve.  In fact, the first three months of 2009 the BBB of Utah has seen a 35% increase in complaints versus the first three months of 2008. 

I wish I could turn back the clock for these consumers and teach them how to research companies, so they wouldn’t have a complaint.  While research doesn’t eliminate all problems (companies do go out of business at the drop of a hat, new companies are started and there is no background, and issues happen with reputable companies!), however, usually there is something in the background research that should send up a red flag.

Here are a few basics to help consumers (and businesses) to research companies prior to doing business with them.

1. If you are seeking a product or service, try to get three prices (comparing apples to apples).  This goes for carpet cleaning, finishing your basement, or hiring a company to help train you how to start a business on the Internet.

2. If the company provides you with a price and says it is only good for one day (or even two or three days) walk away.  A reputable company will allow you time to research and make sure that the deal they are offering is the best deal for you.  A less reputable company will want to take your money right away so you can’t change your mind.

3. Check out the company through the BBB.  Go to www.bbb.org and enter the company’s name into the search field.  If you don’t find anything check out the phone number and even the web address.  Sometimes companies have multiple names, phone numbers and websites.  Search our Accredited Business Directory.

4. Use a search engine on the Internet, for instance Google or Yahoo.  Enter in the name of the company.  Search through the results looking for information that might influence your decision.  Enter the name of the company in quotes and enter complaints after it.  Does other information come up?  Enter the phone number of the company and see what comes up.  Keep in mind you can’t believe everything you read on the Internet!
   
   
5. If you only have a website check the registration of that website through a whois site – www.betterwhois.com is a good place to start.  This site may direct you to another domain registrar.  All domains must be registered, but companies can hide the information.  If the company is hiding the information you should find out why (perhaps it is a home address?) by asking the company.  Make sure the information for the domain registry is essentially the same as on the website (address, phone numbers, etc.).  Some companies have a web designer register the site – ask if it doesn’t match.

6. Do not believe promises for huge earnings.  If a company is promising you that you’ll make all your money back (after paying thousands of dollars up front), you need to decide whether or not you can lose the money you would be paying, PRIOR to doing business with the company.  Look at the guarantee and see if it is achievable.  If you have to complete their program, can you complete it (are the goals something that can be achieved)? Do not put thousands of dollars on your credit card that you cannot pay back tomorrow, thinking that you’ll make it back using their program.  Not everyone can make the money back and usually refunds are not received.

7. Find out where the company is located and make sure they are properly registered and licensed.  Most states require that a company register their company name (incorporate, limited liability or sole proprietorship), with the Secretary of State or Commerce Department.  Utah’s search page is located here: https://secure.utah.gov/bes/action/index.  Local business licensing is also important.  In Utah each city has business licensing and every business is required to be licensed whether they are mowing lawns, selling door-to-door, or have a retail store.  You should contact city hall in the city where the business is located to see if the company has a business license.  Other licenses may also be needed, so checking with www.Utah.gov/business may be helpful.

8. Don’t be afraid to ask the company questions.  And always remember, you have the choice which company you choose, so it is your obligation to ask questions.  Ask what you should do if you have a problem, what the refund policy is of the company, for references (if necessary) and of course for details in writing.  Always read every document the company asks you to sign.  You are bound to a contract you sign.  If you are not satisfied with the language do not sign. Never sign a blank contract.

9. Never pay online with a debit card or give out your bank account information to a company that you do not know (having dealt with them before).  Using a debit card or giving your checking account number could result in your account being overdrawn, if the company withdraws more than you thought they were going to.  Not all people are ethical, so protect yourself.  Using a credit card gives you a level of protection, you can dispute the charge.

10. Finally, if it sounds too good to be true – it is!  Walk away quickly and don’t look back.  Don’t let friends, neighbors or relatives talk you into something that seems too good.  Do your own research so you feel comfortable.