Resurgence of Fraudulent Offers in the Tri-State

By Beth | March 16, 2010

STIMULUS SCAMS: We recently received a call from a retired citizen.  He was called by someone claiming to be from the federal government offering a “stimulus check” for $7000.00.  They knew his home was paid for and mentioned this during the conversation.  The catch is that he was asked to pay over $300.00 when the check was delivered, via either FedEx or UPS, as stated by the caller.  The number in question had a 202 area code (Washington, DC).  Our staff let him know that this sounded very much like a misrepresentation of a government agency or program like those we’ve heard of before. 

For more: BBB Lists Top 10 Scams and Rip-Offs of 2009: Free trial offers and scams that take advantage of tough economic times dominate the list 

NOT YOUR YELLOW PAGES: We recently alerted our community of a scam targeting businesses in our area.  We have been informed by one of our local business owners that he received this call just days after reading the press release.  This time, the individual stated he was calling from the advertising department of Yellow Pages online.  The call came from a 248 area code (Michigan).  The business owner was asked to answer questions about the business, but since he had read our press release he refrained from disclosing any information. 

For more: Tri-State BBB Cautions Businesses Regarding Calls Claiming to Update BBB Files/Solicit Yellow Page Listings

AUTO WARRANTY TROUBLE: We had written posts last year (February 2009; May 2009) warning consumers that all warranty offers may not be what they seem. It has been some time since we’ve heard from a Tri-State resident who has received one of these, but last week a caller let us know she sent a company money some months ago for an extended warranty only to find she wasn’t covered when her vehicle needed repairs recently.  The business, Auto One Warranty, has an F rating with the BBB in Los Angeles. 

TEXT MESSAGES FROM “CHASE”: One of our area residents called last week to let us know about a text message he received.  Coming from an 877 number, the message included information about a “Chase Prepaid Debit” card.  The individual stated he did not have a Chase card, but called the number anyway to see what it was about.  An automated service prompted him to enter his credit card number and expiration date.  Knowing it was not on the up and up, he hung up and call his BBB!  He was right to refrain from disclosing this information. 

Read related posts here: Smishing: Coming to a Cell Phone Near You!  If you receive a questionable offer by phone or mail, call your BBB.

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Consumers Tell BBB Locally Produced Dog Bones Can Cause Serious Illness, Death of Pets

By Beth | March 15, 2010

St. Louis, Mo., March 11, 2010 – A popular pet treat distributed by a meat company in Washington, Mo. and sold in stores across the United States is under attack by dog owners who blame the product for injuring or killing their animals.

The Better Business Bureau (BBB) says consumers should be very cautious when giving “Real Ham Bone For Dogs” to their pets.  The bones are distributed under the Dynamic Pet Products label of Frick’s Quality Meats of Washington.

Several consumers said their dogs became seriously ill or died when the animals ate pieces of the bones, causing damage or blockage to internal organs.

A veterinarian who surgically removed bone fragments from one of the dogs said, “Things like this shouldn’t happen. If you can’t say it’s safe, it probably isn’t something you should have in stores.”

The company has denied any wrongdoing and a manager there says most consumers are fully satisfied with the bones.

Four consumers have filed BBB complaints against Dynamic Pet Products.  Other consumers say the company denied their requests to pay medical bills.

A woman from Richardson, Tex., told the BBB the meat company paid for a new dog after she claimed her bull terrier died after eating one of the bones.  Under terms of her agreement with the company, the settlement is confidential.  The woman described her dog’s death as “violent” and “horrific.” 

Michelle L. Corey, BBB president and CEO, said consumers appear to have a legitimate reason to be concerned.  “There simply are too many of these cases to ignore. Consumers have a right to expect that items sold commercially for their pets will not end up causing them harm.”                                           

Sara Frick-Mades, director of plant services for Dynamic Pet Products, told the BBB in an email that the company would not release information on numbers or types of complaints it has received about the product.  “I can tell you that the praises and compliments far outweigh the complaints or concerns received,” she said.

The website for Dynamic Pet Products, dynamicpetproducts.net, shows a photo of a large dog with a bone in its mouth.  The website and product marketing materials shows the business’s cartoon mascot, a running dog with clenched teeth, wearing a red superhero cape.  “Give the dog a bone . . .,” says the website.  “Nine out of ten dogs choose us!”  The site says Dynamic Pet Products was started in 2001 “to offer some of the best pet products possible to the public.  We’re proud of our track record and reputation for offering some of the best products in class!”

The website notes that the bones are “smoked.”  Dr. Tony Buffington, professor of veterinary clinical services at Ohio State University, said that the more cooked a bone is, the greater the likelihood of the bone splintering and potentially causing problems.  He said it is important to weigh the risks against the benefits in giving any food product to your pet.  He said pet owners should always use caution when giving a bone to a dog.

The bones are sold in stores across the country, including in the St. Louis area. They retail for about $3 each.  The bones are sold wrapped in plastic with labels that say “100% FOOD GRADE INGREDIENTS.”  Just beneath those words, in smaller type, is a warning to pet owners:

“Supervise your pet while consuming any natural bone product,” the warning says in part.  “Not recommended for dogs with digestive problems or aggressive chewers. Remove bone immediately if splintering occurs or small fragments break off.” The label also says that the “Pet owner assumes liability associated with the use of this or any natural bone product.”

Most pet owners interviewed by the BBB said they did not read the label. They said they assumed the bones were safe because they are sold in grocery and other stores.

A dog owner from
Hebron, Ind., said she purchased a Dynamic Pet Products “Real Ham Bone” from a local grocer in February last year.  She said she gave the bone to her 75-pound Husky-Rottweiler mix, but took it away after she noticed it appeared to be splintering.  Less than an hour later, the dog suddenly became lethargic and appeared ill, she said.  When the animal had not recovered by the next morning, she took it to her veterinarian, who ultimately performed surgery to remove multiple bone fragments that had caused blockage in the animal’s intestine.  “She was in pretty bad shape,” the woman said.  “She nearly died.”

The woman’s veterinarian told the BBB that she used her hand to clean “a bunch of pieces of bone” from the dog’s intestine and moved other pieces to a point where they could be excreted by the animal.  The woman said the company’s insurance carrier declined to pay the $1,250 veterinary bill.

A woman from O’Fallon, Mo., who also filed a complaint with the BBB over the bone, said that in March 2008 she gave the same products to a boxer and a Jack Russell terrier.  “It was my first and last time,” she said.  “I wouldn’t want to try it again.”  She said that soon after giving the dogs the bones, they both began to vomit stomach material that included splintered pieces of bone.  She said the animals were ill for two days. She said she contacted the company, which told her the product was safe. She said they offered her coupons for the more of the bones, but she rejected the offer.

A man from Memphis, Tenn., said a veterinarian had to surgically remove “a lot of cartilage” that was obstructing the intestine of his Boston terrier after the dog chewed on a “Real Ham Bone” for a short period of time last July.  The owner said the problem occurred even though he had closely monitored the animal and the bone “never fragmented. The bony part was in good condition when I disposed of it,” he said.  He said he initially planned to ask the company to pay the $1,000 veterinary bill, but became discouraged after reading Internet reports that the company had rejected requests from other pet owners that they be reimbursed.

A dog owner from Albuquerque, N.M., said he bought a Dynamic Pet Products ham bone from a Santa Fe grocery store last month and gave it to his 6-year-old dachshund.  He said the animal had been in “perfect health” before he gave it the bone.   Not long after the dog had chewed on the bone, it became ill, vomiting several times.

The Albuquerque owner said he thought the dog seemed tired, but appeared to be getting better the next day when he left for lunch.  When he returned, the dog was dead and bled from its mouth when he lifted it.   He said a veterinarian told him it appeared an object had ruptured the dog’s stomach or intestine.  “One day he was there and the next day he was gone,” he said of the dog.

A pet owner from
Long Beach, Calif., told the BBB that medical scans of her 9-year-old cocker spaniel showed an intestinal blockage when the animal became ill after eating portions of a Dynamic Pet Products ham bone.  Bills for the treatment totaled $4,000, she said.

A Brandon, Fla., woman sent the BBB copies of extensive veterinary reports compiled during surgery and follow-up treatment of her pet beagle after the animal was given a Dynamic Pet Products ham bone.  The reports indicated an 8 centimeter intestinal blockage caused by “small, chewed bony fragments.”  The animal subsequently died. The woman said the company’s insurer said it would not pay her veterinary bills.

In most cases, no necropsies were done on animals that died after eating the bone. But a 2008 necropsy on a 7-year-old male Akita at the University of Georgia College Veterinary Medicine noted a “severe ulceration” of the animal’s colon caused by ingested bone.  The examination also revealed that the bone had caused an obstruction in the colon. The dog’s owner told the BBB the company refused to pay $4,000 in veterinary bills, saying it was not responsible.

An article on the website WebMD, entitled “Foods Your Dog Should Never Eat,” suggests that pet owners not give bones to dogs. “Although it seems natural to give a dog a bone, a dog can choke on it,” the report says. “Bones can also splinter and cause an obstruction or lacerations of your dog’s digestive system.”   

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Tri-State BBB Cautions Businesses Regarding Calls Claiming to Update BBB Files/Solicit Yellow Page Listings

By Beth | March 12, 2010

The Tri-State BBB received a call from one of its Accredited Businesses recently, concerned about a phone request received to update BBB files.  The business contacted the BBB after receiving a call from a person with a thick accent requesting the names of partners and other information that the BBB does not typically request. It was also mentioned during the call, that this information was needed to provide a yellow page on-line listing.

“BBB representatives do contact businesses periodically to update their Reliability Reports, but typically only ask for accurate contact, address and start date information by phone or by initially sending a standard business questionnaire to the business.  Calls may also be placed periodically to invite businesses to apply for Accreditation, but are not soliciting for yellow page on-line listings”, says Tom Bozikis, Vice President of Bureau Operations.

The BBB keeps Reliability Reports on all businesses, regardless of Accreditation, to provide consumers who enquire accurate contact, location, Accreditation and rating status.  BBB reports can be viewed by visiting www.evansville.bbb.org.

If a business has received a call of concern or would like to verify that a call received was from a BBB representative, they may contact the Tri-State BBB at 812-473-0202.

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One-Stop Recall News Website

By Beth | March 11, 2010

Frequent visitors to our blog have seen alerts from the U.S. Consumer Product Safety Commission or businesses regarding product recalls. (View some recent examples below.)  Part of our mission at the Tri-State BBB is informing consumers of current marketplace issues, and communicating any possible threats to our community is a priority. 

And so we are excited to share another resource with our readers, one that will enable you to quickly find information about recalled products of interest to you.  Search for new recalls of food, vehicles, medicine, and more at Recalls.gov, a joint effort by several agencies to provide information on federal recalls.

Here are some of the most recent news items:

Risk of Strangulation Prompts Recall to Repair Roman Shades by Ethan Allen

National Pretzel Co. Annouces Precautionary Recall of Honey Mustard Onion Seasoned Pretzels Because of Possible Health Risk

Tires Recalls: PEP BOYS ( 10T005000 )

Child Safety Seat Recalls 

Motor Vehicle Recalls 

Related posts from your BBB:

Massive Stroller Recall 

Important: Toyota Recall Correction 

Girl Scout Cookie Recall

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Don’t Be Lured Into Sharing Your Personal Info in Exchange for a Big IRS Refund!

By Beth | March 10, 2010

Just in time for tax season, consumers are seeing an increase of fraudulent communications from individuals claiming to be with the Internal Revenue Service (IRS).  Some are informing recipients that they are eligible to receive a refund totaling approximately $2000, and in order to receive this they must complete a form that requires them to disclose personal information.

The agency has reported that there have been fraudulent attempts to capture personal data using the IRS name and seal, luring in individuals by promising a hefty refund. 

And so what should you do if you receive an email claiming to be from the IRS?

Click here for more from the IRS, including a sample fraudulent email, how to avoid identity theft, and common threats using government agency seals.

Topics: Identity Theft, Scams | No Comments »

Students: Protect Your Credit Score From the Beginning!

By Beth | March 9, 2010

Our friends at the Cincinnati BBB have shared some great information for students who are taking their first steps towards financial independence. The freedom that comes with moving away from home may also be accompanied by a temptation to make hasty financial decisions. Unfortunately, not all are aware of possible drawbacks to opening a credit card or buying big ticket items, for instance.  Read below for some quick tips for students who may be new to budgeting, credit, and bill paying.  Contact your BBB with questions. 

Benefits of Establishing Credit in College 

College students should know that it is good to establish a strong credit history in college before entering the real world. It in fact could save you money and headaches in the future.  But it is important to know what you are agreeing to and how it will affect you in the future.  Click here for more information about new credit card laws.

Click here for more from bankrate.com.

What habits lower my Credit Score?  

Credit Myths 

Click here for more from Money.CNN.com

For more information, read Student News: Credit Cards and You

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Do You Have a Contract with US Fidelis? Read Here.

By Beth | March 8, 2010

Last year the BBB warned consumers to be cautious if considering purchasing a vehicle warranty with US Fidelis. (Click here to view the blog post.)  For our readers that did enter into a contract with the company, read the alert from our friends at the St. Louis BBB below!

BBB Ready to Help Consumers in Aftermath US Fidelis Bankruptcy Filing

St. Louis, Mo., March 2, 2010

 

The Better Business Bureau (BBB) is urging dissatisfied customers of US Fidelis to continue to pursue refunds and settlements with the company even though it filed for bankruptcy on Monday.

 

“We at the BBB remain committed to assisting anyone who needs help working through this difficult period,” said Michelle Corey, BBB president and CEO.  She said the BBB has been at the forefront in assisting consumers who said they have been treated unfairly by the Wentzville-based vehicle service contract company, “and we will continue to do everything possible to make sure that these customers are not abandoned.”

The BBB suggests that consumers with questions about their contracts first contact US Fidelis and the third party administrators who are managing their vehicle service contracts.  If they cannot get satisfaction, they should contact the BBB’s St. Louis office and the Missouri attorney general’s office.   They also may want to file a claim with the U.S. Bankruptcy Court in St. Louis, the BBB said.

US Fidelis, once regarded as the nation’s top seller of extended auto service contracts, filed for bankruptcy protection on March 1.  In less than a year, between April 2009 and late February 2010, the number of employees dropped to slightly more than 100 from a peak of 1,100.

“The collapse of US Fidelis is a classic story of a business that seems to have put its overly aggressive push for profits ahead of its customers’ needs,” said Corey. “When that happens, a business can become a house of cards.” 

A customer service representative with Tier One Warranty, one of the administrators for which US Fidelis sold contracts, said the bankruptcy filing should not affect the handling of service contracts for consumers.  “Absolutely not,” she said.

US Fidelis is owned by brothers Darain and Cory Atkinson. The 7-year-old company first came under serious public scrutiny last April when the St. Louis BBB issued a news release raising concerns about that company and several similar businesses operating in the St. Louis area.  At that time, the BBB reported that it had received more than 1,100 complaints against US Fidelis in the previous 36 months. Consumers told the BBB they felt misled and pressured into buying vehicle service contracts that they either did not need or which they later learned did not provide the coverage they had expected.

The April 2009 BBB warning prompted a flurry of publicity about the company and the industry, with local and national media reporting on customer problems.

Three months later, the BBB issued a second news release, noting that complaints against US Fidelis had actually increased despite promises from CEO Chris Riley that officials would “clean up everything” with the company.

At that time, Corey said the BBB had been waiting patiently for US Fidelis to begin improving its customer relations.  “When we see their complaints drop, we’ll know then that they are making progress,” she said. 

“So far, we haven’t seen that.”

When the bankruptcy petition was filed, the BBB had recorded more than 1,700 complaints against the company in the past 36 months. The bankruptcy filing came on the heels of a news report in the St. Louis Post-Dispatch noting that the company recently had stopped issuing refunds to customers.

At about the same time the company stopped issuing refunds, US Fidelis stopped responding to complaints filed with the BBB.  Records show that US Fidelis last responded to a BBB complaint on Jan. 28, 2010.  In the month that followed, customers filed nearly 60 complaints against the company.

The BBB’s Corey said the lack of response signaled a disturbing about-face for the business. “We can only hope this is something that is short-lived and that US Fidelis soon will return to addressing concerns raised by its customers.”

By late last fall, financial problems began to result in employee layoffs. Earlier this year, the company announced it had stopped selling service contracts altogether.

The 440-page bankruptcy filing identifies about 1,500 creditors, including hundreds of US Fidelis customers who may be owed cancellation refunds. Other major creditors and the amounts owed include Chicago-based MEPCO Finance Corp., $14.5 million; a Pennsylvania TV advertising agency, $7.3 million; the law office of John Ashcroft, $668,000, and Rusty Wallace Racing, $535,000.

According to the filing, the Atkinson brothers or their affiliated real estate companies owe US Fidelis more than $65 million.  If aggressively pursued in the bankruptcy court, that money could be used to satisfy creditors, including consumers with claims against the company.

Related post: BBB Receives More than 1,200 Complaints and Reports Against Extended Auto Warranty Company and NASCAR Sponsor US Fidelis

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National Consumer Protection Week: Find out how BBB can help you become a savvier consumer

By Beth | March 5, 2010

March 7 is the kickoff to National Consumer Protection Week (NCPW) and Better Business Bureau is a proud supporter of this nationwide effort to educate the public on how to become savvier consumers. For anyone looking for advice on how to spend money wisely, your Better Business Bureau is here to help, not just during National Consumer Protection Week but all year long.

For NCPW, hundreds of national and local organizations work together to educate consumers on the importance of taking control of their personal finances.  The theme of this year’s NCPW is Dollars and Sense, Rated A for All Ages and highlights consumer education for every stage of life – from grade school to retirement.

“The economy is still in a slump and, now more than ever, consumers need to take control of their spending habits and be vigilant against fraud and scams,” said Alison Southwick, BBB spokesperson. “We encourage everyone to take time to get educated during National Consumer Protection Week and keep BBB in their back pocket as a tool for protecting their hard earned dollars in the coming year.”

Following are just a few ways that BBB can help consumers shop smarter and safer.  BBB is here to help if… 

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Don’t Get Duped When Selling Your Timeshare

By Beth | March 4, 2010

In a tough economy, struggling families look for ways to reduce their expenses. One popular option is to unload any timeshares so they can recoup their investment and stop paying maintenance fees. Many businesses specialize in reselling timeshares, but Better Business Bureau warns that some companies are using deceptive sales tactics to bilk thousands from already cash-strapped timeshare owners.

While timeshare owners are looking to unload the financial burden, unfortunately, not as many vacationers are buying. Timeshare sales dropped 40 percent in 2009, according to the American Resort Development Association. As a result, timeshare owners who are eager to sell are increasingly susceptible to offers that are too good to be true.

“Because of the economy, many timeshare owners want to cash out now but no one is buying,” said Alison Southwick BBB spokesperson. “Unfortunately, some unscrupulous timeshare resellers are taking advantage of the situation by misleading timeshare owners into paying thousands of dollars in the hopes of unloading their timeshare quickly.”

Companies like Resorts Condo Management, Creative Vacation Solutions, Platinum Property Exchange and Premier Timeshare Solutions have earned F ratings with BBB for convincing timeshare owners that they already have interested buyers but require thousands of dollars in upfront fees—such as closing costs—from the sellers and ultimately fail to complete the promised sale.

One man from Lincoln, Nebraska, who complained to BBB was promised by PTS that the business had a buyer for his timeshares, but if the sales did not go through, he would get his money back. He paid PTS a total of $7,710. The sale never went through and he never got his money back, despite the guarantee from the company.

BBB offers the following advice to timeshare owners who are looking for help in selling their timeshare:

For more advice you can trust on how to stretch your dollar in a tough economy, contact your BBB.

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BBB Warns Against Online Payday Lenders That Claim the Laws Don’t Apply to Them

By Beth | March 3, 2010

Arlington, VA – March 2, 2010 – Better Business Bureau is warning cash-strapped families to beware of some online payday lenders that claim they are not beholden to state or federal laws regarding licensing requirements, debt collection practices or caps on interest rates.  

“Desperate times are leading people to the Internet to apply for payday loans and many are falling deeper into debt after getting tangled up with a lender who has zero regard for the law,” said Stephen A. Cox, President and CEO of the Council of Better Business Bureaus. “Unlike a payday loan that you might get from a local business, online payday loans require your bank account number and, as a result, the borrower is at the mercy of the lender as more money than they counted on is withdrawn from his or her account.”  

Hundreds of people have complained to BBB after signing up for a payday loan on sites like OnceClickCash.com, 500Fastcash.com, rbtloans.com and Ameriloan.com. Complainants state that they agreed to what they believed was a one-time payday loan — typically a few hundred dollars to be paid off in two weeks. They supplied their bank account information to the lender and the money was promptly deposited.  

The arrangement quickly turns into a debt spiral. Complainants state all of their subsequent payments went toward paying off recurring finance charges and never toward the principal. As a result, they report paying two and three times the amount of the original loan and still having the same amount of principal to pay off. One Massachusetts woman who received a loan from Ace Cash Services stated she made over $1,700 in payments to pay off a $225 loan. A borrower in Pennsylvania claimed to be subjected to a 547 percent interest rate on a $300 loan by a lender called United Cash Loans. 

Many complainants were surprised to learn that the online lender was not licensed by the state and charged interest rates well over what was allowed by their state usury laws. When confronted, the lender typically responds that they don’t have to follow state or federal laws — often claiming that they are based in another country or on Native American reservations and are sovereign nations. 

Following an investigation and lawsuit by the West Virginia Attorney General against online payday lenders, officials stated that they had evidence to prove the lenders who claimed tribal sovereignty were not actually part of the tribe but were merely “renting” it for the purposes of claiming shelter from state and federal laws. 

A story on online payday lending in the Los Angeles Times cites that state officials and consumer advocates find it impossible to track this unregulated industry but, “suspect that it involves thousands of Web sites generating billions of dollars in revenue nationwide.” 

“The bottom line here is that if you are handing over your bank account information online to get a payday loan without doing your research, you are setting yourself up to pay hundreds and even thousands of dollars more than you bargained for,” added Cox.   

When looking for a payday loan online BBB recommends the following: 

Consider all of your options. Payday loans can be extremely expensive if you are unable to pay the loan off quickly. The Federal Trade Commission recommends looking into a short term loan from your bank, contacting your current creditors quickly to explore payment options, working with a credit counseling center or at the very least, shopping around for the best interest rate and terms. Because of concerns with online lenders, try to find a brick and mortar location before settling on a lender. 

Look for the red flags.  Unscrupulous online lenders often wave the same red flags including not being forthcoming about their location or contact information. Also be cautious of any lender that doesn’t ask you for any background information outside of your bank account number.  

Research the lender with BBB. Always check an online payday lender’s reliability report online before you hand over any bank account information.   BBB Reliability Reports are available for free online and will tell you how many complaints BBB has received, how the company responded to complaints and BBB’s overall letter-grade rating. 

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