Privacy Issues and ID Theft are Top Concerns of Online Shoppers, According to New Survey by BBB

A new Better Business Bureau (BBB) survey conducted by Kelton Research finds that six in 10 (60 percent) American adult online shoppers are worried about their personal information being sold or reused when asked what has ever made them hesitant about completing a transaction online. Nearly the same amount (59 percent), admit they’ve had anxiety about their credit card information being stolen.

Despite concerns, consumers are increasingly turning to the convenience of online shopping during the holiday season. In a recent 2007 holiday spending forecast, Forrester Research, Inc. estimated online shoppers would increase seasonal spending nearly 20 percent, to $33 billion, this year. The National Retail Federation recently published a survey noting that 72 percent of retailers are planning special offers to entice online shoppers on Cyber Monday (the Monday after Thanksgiving). In 2006, Cyber Monday sales beat Black Friday sales (the day after Thanksgiving) by nearly 25 percent, $608 million versus $457 million.

“Even though increasingly more holiday shoppers have confidence in making online purchases, basic trust in business issues such as privacy and ID theft are clearly still top concerns for many consumers,” said Steven Cole, president and CEO, Council of Better Business Bureaus. “Survey results show that fears over the use and safety of personal information including credit card numbers, telephone numbers, and home and e-mail addresses are the main reasons online shoppers second-guess their decisions when making online purchases.”

In addition to privacy and identity theft concerns, many online shoppers also indicated that they have hesitated shopping online over the concern of receiving spam and/or junk e-mails (45 percent). Less online shoppers were concerned about the difficulty of navigating the site (26 percent) and the amount of time it takes to ship the item (25 percent).

“Although online shopping is fast and convenient, unfortunately, you can’t tell just by looking at a Web site whether a company is trustworthy and dependable, much less even legitimate. Consumers want a safe online environment, and they can help themselves by being a savvy online shopper this holiday season with a little research and by taking a few safety precautions,” added Cole.

BBB offers the following advice to help make your online shopping a safe and easy experience this holiday season:

• Protect your computer – Update your computer system with the latest spam filters, anti-virus and anti-spyware software, and a secure firewall.
  
• Use trustworthy Web sites – Always start with BBB to check on the seller’s reputation and record for customer satisfaction. Look for a “trustmark” from BBBOnLine and click on that seal
• to confirm that it’s valid.
  
• Protect your personal information – Read the site’s privacy policy to understand what personal information is being requested and how it will be used. If there isn’t one posted, consider that a warning that your personal information may be sold to others without your permission.
  
• Trust your gut – Offers on Web sites and in unsolicited e-mails can often sound too good to be true. Always go with your instincts and don’t be afraid to pass up a “deal” because it might cost you in the end.
  
• Beware of phishing – Legitimate businesses do not send e-mails claiming problems with an order or an account to lure the “buyer” into revealing financial information. Pick up the phone and call the contact number on the Web site where you made the purchase to ask if there was a problem with your transaction.
  
• Confirm your online purchase is secure – Look in the address box for the “s” in https:// and in the lower-right corner for the “lock” symbol before paying. If you have doubts about a site, right-click anywhere on the page and select “Properties.” This will let you see the real URL (Web site address) and the dialog box will reveal if the site is not encrypted.
  
• Pay with a credit card – It’s best to use a credit card because under federal law you can dispute the charges if you don’t get what you were promised. You also have dispute rights if there are unauthorized charges on your credit card, and many card issuers have “zero liability” policies under which you pay nothing if someone steals your credit card number and uses it.
  Keep documentation of your order. When you’ve completed the online order process, there may be a final confirmation page or you might receive confirmation by email – don’t delete these, save them!
  
• Check your credit card statement often – Don’t wait for a paper statement; check your credit card statements for suspicious activity by either calling the credit card company or by checking your statement online.
  
• Know your rights – Federal law requires that orders made by mail, phone or online be shipped by the date promised or, if no delivery time was stated, within 30 days. If the goods aren’t shipped on time, you can cancel and demand a refund. There is no general three-day cancellation right, but you do have the right to reject merchandise if it’s defective or was misrepresented. Otherwise, it’s the company’s policies that determine if you can cancel the purchase and whether you can get a refund or credit.

Avoiding Problems with Merchandise Returns

While many recipients of holiday gifts will no doubt be ecstatic about the gifts they receive, many others will head to the store to return gifts the first chance they get. Unfortunately, many people find there are unpleasant consequences if they do not know the store's return policy. Among common myths are that stores must take back any item they sell. Consumers should know that there are no laws requiring stores to take back merchandise, unless it is defective or misrepresented. Stores' return policies should be clearly posted.

Here are some things to remember when giving or returning gifts:

• Make sure to keep receipts. If giving a gift, ask for a gift receipt and enclose it with the present.


• Read the retailer’s policy before you purchase products. Make sure you understand whether you or the recipient of your gift can get a refund, exchange or store credit for unwanted merchandise. Also, if returns are permitted, ask what procedures and timeframe need to be followed.


• Understand what the return policies are for on-sale and clearance items, which may be different than merchandise sold at full price.


• Don’t remove electronics or similar products from their boxes before wrapping because the original packaging may be required for a return.


• Some merchants charge a restocking or "open box" fee for returns of electronics products or large-ticket items. Ask if that is their policy.


• Be sure to look for return policies when buying online or from catalogs. Sometimes merchandise can be returned to a store; otherwise, you may be charged a shipping fee to return or exchange an item.


• Remember that many things purchased online, such as software downloads, are not refundable. Therefore, be absolutely sure you are prepared to pay for anything you download.

Consumer Charitable Giving Guide for the Holidays for the Holiday Season

Tis’ the season for giving and there are many ways you can give back to your community this holiday season. Whether you’re donating money, gifts, or your time, the BBB Wise Giving Alliance has guidance to help make sure your contributions have the most benefit for those in need this holiday season.

According to the Giving USA Foundation, donations totaled $295 billion in 2006; individuals accounted for 83.3 percent of this amount. In addition to donations, more than 61 million Americans volunteered their time for charitable and national service organizations.

If you plan on being one of the millions of Americans to donate time or money this holiday season, the BBB Wise Giving Alliance offers the following advice:

When in doubt, check it out. When an unfamiliar organization asks you for a donation, don’t give without gathering details about the charity, the nature of its programs and its use of funds. Also contact the BBB Wise Giving Alliance or go to www.bbb.org/charity for a BBB Wise Giving Report on the charity.

• Think before you give. If you are solicited at the mall or on the street, take a minute or two to “think.” Ask for the charity’s name and address. Get full identification from the solicitor and review it carefully. Ask to see written information on the charity’s programs and finances.


• Giving later might be better. Never feel pressured to give on the spot. Legitimate charities will welcome your money tomorrow. If the solicitor pressures you with intimidation or harassing phone calls, don’t hesitate to file a complaint with BBB.


• Watch out for cases of mistaken identity. With more than one million charities in the U.S., it’s not surprising that some charity names sound alike. Be careful that the one soliciting you is the one you have in mind.


• Don’t accept vague claims. If something is being sold to benefit a charity, be wary of vague statements such as “all proceeds go to charity” or “your purchase will benefit a charity.” Look for a disclosure that indicates the actual or estimated amount of the purchase price that the charity will receive to fund its programs.


• Unordered merchandise is free. If a charity sends you greeting cards, address labels or other merchandise with an appeal for donations, you are not obligated to make a donation or pay for the items.


• Watch out for charity fraud. Legitimate charities do not demand donations; they willingly provide written information about their programs, finances or how donations are used; and they never insist you provide your credit card number, bank account number or any other personal information.


• Donate toys, food or services. Consider donating food, toys, clothing or other items needed during the holidays. Volunteering your time is another useful and much appreciated option.


• Remember, not all soliciting groups are charities. If you want to take a charitable deduction for federal income tax purposes, make sure to verify the organization’s tax-exempt status first. You can check out a charity’s tax-exempt status at http://apps.rs.gov/app/pub78.

For more trustworthy information and advice from the BBB Wise Giving Alliance on how to make informed donor decisions this holiday season go to www.bbb.org/charity.

Consumers Encouraged to Avoid Debt “Hangovers”

BBB Offers Tips to Use Credit Cards Responsibly

Ridgeland, Miss. November 5, 2007 – With holiday shopping in full swing, credit card charges are surging. Consumers appreciate the convenience and safety of credit card transactions. The “buy today, pay later” philosophy has become a holiday tradition.

“Credit cards are useful tools when used responsibly," said Bill Moak, President/CEO of the Better Business Bureau (BBB) of Mississippi. "The challenge is to remember the ‘pay later’ part of your credit card agreement. The BBB encourages consumers to carefully review credit card options in order to avoid a post-holiday credit ‘hangover’.”

This is particularly important if you are considering applying for a new credit card. US households receive an average of six card solicitations per month which can be tempting this time of year, the BBB advised.

“Our BBBTips™ on Credit Cards is designed to help guide consumers to make credit card decisions that are right for their particular financial circumstances,” said Moak. The BBB system's new educational resource is available online at www.bbb.org/tips/clearpoint. BBBTips™ on Credit Cards is intended to assist experienced cardholders as well as those seeking to qualify for their first credit card.

Topics include:

• Various types of credit cards, reward programs and other enhancements;
• The pros and cons of credit cards;
• Credit terms and definitions;
• Understanding credit card solicitations and applications;
• Deciding which credit card is right for your situation;
• Evaluating balance transfer offers;
• Steps to take if you cannot make a payment.

“Consumers need to carefully examine all credit card offers before deciding what suits their budget and spending patterns. We join with the BBB to provide practical information about credit cards to help consumers be credit ‘wise’ and creditworthy," said Dan Oelrich, President and CEO of ClearPoint.

The BBBTips™ program supplements other helpful information provided by Better Business Bureaus to promote an ethical marketplace. In 2006, BBBs in the United States and Canada provided more than 90 million instances of service to consumers and businesses. At the Mississippi headquarters, more than 400,000 information requests and 2,700 complaints were handled during the past 12 months.

For assistance from the BBB of Mississippi, visit http://www.ms.bbb.org/ or call 800.987.8280.
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BBB Advises Caution with Wildfire Donations

Many Americans want to help the thousands of Southern Californians displaced by the wildfires, and the most common way people across the country can do this is by making donations to the many relief agencies and charities already at work.

However, as with every natural disaster, there are some unscrupulous people who will attempt to take advantage of the public’s eagerness to help victims and the BBB Wise Giving Alliance offers the following advice for donors to ensure their donations go to trustworthy relief efforts.

“In the face of any disaster, Americans will immediately step forward with donations to aid the victims and their families,” said Art Taylor, CEO of the BBB Wise Giving Alliance.

“Unfortunately, as we saw after Hurricane Katrina, scammers will try to take advantage of the generosity of the public; that’s why it’s important to take your time and do your research before donating to a charity relief effort.”

The BBB Wise Giving Alliance offers the following advice to make sure your donations go to worthy charities and relief efforts:

• Before making a contribution, go to www.give.org to obtain detailed evaluative reports on many of the relief organizations providing assistance.


• Be wary of charities that are reluctant to answer reasonable questions about their operations, finances and programs.


• Do not hesitate to ask for written information that describes the charity’s program(s) and finances such as the charity’s latest annual report and financial statements.


• Find out what the charity intends to do with any excess contributions remaining after they have fully funded the disaster relief activities mentioned in solicitations.


• Do not give cash. Checks or money orders should be made out to the name of the charitable organization, not to the individual collecting the donation.


• Keep an eye out for fake charities that imitate the name and style of well-known organizations in order to confuse people and potentially steal personal information such as credit card numbers.


• Don’t give in to excessive pressure for on-the-spot donations. Be wary of any request to send a “runner” to pick up your contribution.


• Think twice about donating to any charity that is inexperienced in carrying out relief efforts but is suddenly soliciting for aid for Southern California. Although well intentioned, such organizations may not have the ability to quickly deliver aid to those in need.


• Be wary of appeals that are long on emotion, but short on describing what the charity will do to address the needs of victims and their families.


• Do not give your credit card number or other personal information to a telephone solicitor or in response to an e-mail solicitation.


• To help ensure your contribution is tax deductible, donations should be made to charitable organizations that are tax exempt under section 501(c)(3) of the Internal Revenue Code. Go to IRS Publication 78 on www.irs.gov for a current list of all organizations eligible to receive contributions deductible as charitable gifts.

For more information on the BBB Wise Giving Alliance and to view more than one thousand BBB Wise Giving ReportsTM on charities across the nation go to http://www.give.org./

BBB: Carefully Consider Online Degree Programs

Online degree programs are an option in an emerging trend for those interested in adding credentials and qualifications to their resumes. In 2006 more than three million students were enrolled in at least one online course. It is estimated that in 2008 one in 10 college students will be enrolled in an online university.

Although an online education can be convenient and popular, the Better Business Bureau (BBB) of Mississippi warns that some can also be a source of fraud and frustration.

“What used to be a small-time ‘mom-and-pop’ fraud is now a professional criminal operation,” says Bill Moak, President/CEO of the BBB Mississippi . “There are now more than 400 diploma mills and 300 counterfeit diploma web sites doing business of more than $500 million annually. Many of these fraudulent web sites portray beautiful, picturesque campuses with many students when, in reality, the degree diplomas are possibly printed in someone’s basement.”

The BBB reminds prospective online students to watch for the following signs that the could actually be dealing with a diploma mill:

• Little or no work is required to be completed in order to receive a degree.


• Special pricing is offered to those receiving more than one degree at a time (such as combined bachelor’s and master’s degrees).


• The name of the degree program is very similar to the name of a well-known, prestigious college or university.


• Administration building addresses include P.O. boxes or suites.


• Pricing is stated per degree instead of per credit hour.

The most important step in choosing an online degree program is to make sure that the college or university is accredited by one of the six regional accreditation boards. The
U S Dept. of Education maintains a data base of accredited post-secondary schools at www.ope.ed.gov/accreditation.

Do-Not-Call List Numbers Not Expiring (Yet)!

An urban myth is circulating that the federal “Do Not Call” listings are about to expire. Internet emails would have you believe that the federal list, which went live in 2003, is about to expire. In truth, the first expirations will occur in 2008, five years after the numbers were registered. More than 3.4 million people visited the new DoNotCall.Gov Web site on the day it launched, June 27, 2003. Twenty-three million people had signed up within the first month.


Here are some important facts for consumers:

• The Do Not Call registry is good for any home or business telephone number.


• Phone numbers which are changing due to the new area code will be automatically changed within the Do Not Call database. There is no need to re-register these numbers.


• Cell phone numbers may be registered, although presently they are prohibited from being targeted by telemarketers.


• The Do Not Call list is available at http://www.donotcall.gov/ or by calling 1-888-382-1222.


• If you want to find out when your registration expires, visit https://www.donotcall.gov/FAQ/FAQConsumersNew.aspx and click “Verify Your Registration.”

Remember, the Do Not Call list will not stop the following calls: Companies with which you have a “prior business relationship”; political organizations; charities and polling or survey companies.

Business Travelers Beware: Free Wi-Fi Scam Strikes at Airports

In order to keep up in today’s world, a business needs to make sure its employees stay connected, even on the road. Many airports and other public spaces offer free wireless, or Wi-Fi, connections for the public to log onto the Internet from their laptop computers. The Better Business Bureau (BBB) warns that hackers are now taking advantage of this convenience and setting up fake Wi-Fi connections designed to steal your personal information and files without you even knowing.


How it works
Although hackers can and have set up fake Wi-Fi connections in a number of venues, usually they will target consumers at airports. When searching for connections, consumers may see a network connection available that could be simply named “Free Wi-Fi.” Thinking it’s the free connection offered by the establishment, they’ll log on. Unfortunately, the network may actually be an “ad-hoc” network, or a peer-to-peer connection. The user will be able to surf the Internet, but they’re doing it through the hacker’s computer. And the whole time, the hacker is stealing information like passwords, credit card and bank account numbers, and social security numbers. Beyond simply stealing keystroke information as the user enters various types of data, if the PC is set to share files, the hacker could even steal whole documents from the computer.

Airports across the nation continue to report on Wi-Fi security issues. Officials in Atlanta, New York LaGuardia and Los Angeles airports have all reported the existence of ad-hoc networks advertised as free Wi-Fi connections. An investigation revealed that Chicago O’Hare had 20 ad-hoc networks present that were potentially designed with the intent of hacking into unsuspecting user’s computers and networks.

The BBB offers the following advice on how to keep yourself safe when you go wireless:

• Never connect to an unfamiliar ad-hoc network—even if the name sounds genuine. A hacker can change the name of his network to anything he wants, including the name of the legitimate Internet connection offered by the airport. Just because it has the same name as the Wi-Fi advertised in the airport, don’t believe it. For more information on how to distinguish between an ad-hoc network and a normal Wi-Fi network with Windows Vista or XP visit http://support.microsoft.com/.


• Make sure that your computer is not set up to automatically connect to non-preferred networks. Otherwise your computer could automatically connect to the hacker’s network without your knowledge.


• Turn off file sharing when you’re on the road to prevent hackers from stealing entire documents, files and unencrypted e-mail from your computer.


• Create a Virtual Private Network (VPN) for your business. A VPN establishes a private network across the public network by creating a tunnel between the two endpoints so that nobody in between can intercept the data. Many companies allow remote users to connect to corporate networks as long as they use VPN. This keeps the users' communications just as secure as if they were sitting at a desk in the building.

BBB Warns College-Bound Students and Parents to Beware of Financial Aid Schemes

The Better Business Bureau (BBB) is warning college-bound students and their parents to be wary of financial aid fraud perpetrated by companies promising big bucks for college tuition, but who ultimately take your money and leave you with nothing.

Consumer complaints against scholarship, loan and grant services to the 114 BBBs across the U.S. increased by 60 percent in 2006.

“Funding a college education is expensive, and finding money for college can be an intimidating process,” said Bill Moak, President of the BBB Mississippi.. “The fallout from this year’s student loan scandal, combined with the efforts of tireless scammers, means there is a real trust crisis in the financial aid industry. There are many unscrupulous businesses and outright scams taking advantage of overwhelmed parents who are just trying to put their child through school.”

Along with a significant rise in complaints in 2006, the BBB has seen a steady flow of loan, grant and scholarship complaints so far this year from consumers fed up with the industry. Following are the most recent examples of complaints and common scams taking advantage of college-bound students and their parents.

Financial Aid Seminar Scams
Parents from New York to California have contacted the BBB saying they paid a Utah-based company as much as $1,000 for help finding financial aid and never heard from the company again.

Parents report their college-bound child received an email from College Money Matters stating they’d “been accepted” to attend a free financial aid seminar. The seminar was essentially a sales pitch and, for a fee, the company would submit the student’s Free Application for Federal Student Aid (FAFSA) form and find college scholarships and grants for the student. Victims report they paid $700 to $1,000 and never heard from the company again. Not only did they not receive the promised help for finding grants and scholarships, but many discovered that their child’s FAFSA form was never even filed.

College Grant Scams
The BBB continually hears from consumers who have received emails or letters with offers for “Free Grant Money” – saying they qualified for private or government grant money as financial aid for debt relief or to help pay off college bills.

When victims received the grant in the form of a check, they were instructed to deposit the check and then wire a smaller amount of money back to cover processing fees. Because checks looked professional, it often took several weeks for banks to discover they were counterfeit. Not only did victims have to pay the banks back for money they withdrew on the counterfeit checks, they were also out the money they had wired to the scammers.

The Wisconsin BBB reports that a University of Wisconsin student was recently a victim of a grant scam. The student was promised $25,000 in grant money. After initially receiving a counterfeit check for $5,000, he was told that in order to receive the remaining grant money he had to send them $2,500 through stored-value cards. He had transferred $500 and was planning to transfer the rest but the scam was discovered by his bank.

“Parents nationwide are devastated and very angry about being taken advantage of,” added Moak. “Some have saved for years to help give their children a college education. And now, money that could have gone directly toward tuition and expenses has instead gone toward lining the pockets of scammers.”

How to Avoid Scholarship Scams
The BBB offers advice to avoid being snared in scholarship traps, recommending that you be suspicious if a representative tells you:

• "The scholarship is guaranteed or your money back." In reality no one can guarantee that they will get you a grant or scholarship. And the refund guarantees that are offered usually have so many conditions or strings attached that it is almost impossible for consumers to get their money back.


• "You cannot get this information anywhere else." Actually, scholarship information is widely available in books, from libraries and financial aid offices and on the Internet, if you are willing to search for it.


• "We will do all the work." Only parents and students can really determine and provide the financial information needed to complete the forms.


• "You have been selected by a national foundation to receive a scholarship." If you have not entered a competition sponsored by the foundation, this claim is highly unlikely.


• "May I have your credit card or back account number to hold this scholarship?" This is never a requirement for a legitimate scholarship offer.


• "The scholarship will cost some money." Legitimate scholarship offers never require payment of any kind.

For more advice and information on how to avoid scholarship and grant fraud, and for objective Reliability Reports on companies in the financial aid industry, go to http://www.bbb.org/.

Are You Falling Behind on Your Mortgage Payments?

Mortgage foreclosures are up; interest rates are up; and the number of houses for sale that are languishing on the market is up. About the only thing that is "down" these days is the troubled homeowner who is having difficulty making his or her mortgage payment.

The Better Business Bureau has developed a new educational resource - BBBTips™ for Troubled Homeowners --to assist those who fear they can longer afford to meet their mortgage obligation.

"Whether you are a couple of months behind in your mortgage payment or a couple of weeks behind, there are positive steps you can take to protect the value of your investment. The BBB wants troubled homeowners to know that they are not alone and they are not without options," said Steve Cole, president and CEO of the Council of Better Business Bureaus.

"Troubled mortgage-holders are no exception. BBBs are assisting with an increasing number of complaints about foreclosure 'rescue' businesses that promise homeowners a fail-safe solution. Victims report unknowingly signing over the deed to their house; having to pay rent to live in their own home; or confronting a buy-back deal that exceeds the value of their home," Cole said.
BBBTips™ for Troubled Homeowners outlines the options that are available to financially-pinched homeowners, from those who are anxiously awaiting a "reset" of their adjustable rate mortgage to those who may already be on the road to foreclosure.

The BBB system's new educational resource is available online at www.bbb.org/tips/clearpoint.

Topics include:

• Reasons behind the current rise in mortgage foreclosures;


• Advice for homeowners on assessing their personal situation;


• Steps to take if you can't make your monthly mortgage payment;


• Seeking assistance from a non-profit housing counselor; and


• Avoiding foreclosure "rescue" scams.

BBBTips™ for Troubled Homeowners is sponsored by ClearPoint Financial Solutions, Inc.™, a System-wide member of the Better Business Bureau. This is the latest release in a series of BBBTips™ resources on credit and debt issues.

"We join with the BBB to provide practical information to help homeowners who are worried about losing their homes. The sooner they develop a plan of action, the greater their chances to improve their financial situation," said Dan Oelrich, President and CEO of ClearPoint.

The BBBTips™ program supplements other helpful information provided by Better Business Bureaus to promote an ethical marketplace. In 2006, the 129 BBBs serving communities across the United States and Canada helped consumers and businesses with more than 105 million instances of service.

Beware of Debit Card Fraud

Banking industry losses due to debit card fraud exceed $600 billion annually. This is being done by skimmers – criminals who steal card information and use it to make purchases or withdraw cash from accounts – who make PIN and signature purchases as well as (mainly) ATM transactions. The skimming takes several forms: hacking into payment networks, attaching a skimming device to an ATM or merchant terminal, installing cameras to capture data, or simply looking over shoulders and memorizing PINs.

The Better Business Bureau (BBB) of Mississippi offers the following tip to help consumers avoid falling victim of debit card fraud:

• Monitor Your Statements. Closely monitor bank statements and balances. ; report problems to your bank. Contact your bank immediately if your card is lost, stolen, or subject to fraudulent use. Keep receipts for checking bank statements; if they contain your full account number, shred them before discarding


• Protect Your PIN (Personal Identification Number). Keep a record of card numbers, PINs, expiration dates, and toll-free phone numbers (in a locked, secure place) for banks for easy use in case of theft. Memorize your PIN, and do not make it available to others. Never write your PIN on your card, and do not use numbers which are easy for you to remember, such as your birthdate. Remember, crooks can often guess these numbers after doing a little easy research on you. Do not allow people to look over your shoulder when entering your PIN in machines. Do not give out your PIN over the phone (even if the caller claims to be from a law enforcement agency).


• Eliminate Blank Spaces on debit slips (such as the "tip" line on restaurant bills) so that the total amount cannot be changed.

For more information about avoiding debit card fraud, the American Bankers' Association provides information on its website at http://www.aba.com/Consumer+Connection/debitcardfraud.htm.

BBB Warns Consumers of Nationwide Locksmith Swindle

The Better Business Bureau (BBB) is warning consumers to beware of untrustworthy locksmith companies that are ripping off consumers across the country.

Victim complaints to the BBB reveal that several locksmith companies, all using similar methods, are significantly overcharging consumers, charging consumers for unnecessary services, using intimidation tactics, and failing to give refunds or respond to consumer complaints.

“Ironically, these companies operate under names like ‘Dependable Locksmith’ but in reality they exploit the vulnerable situation of consumers who are locked out of their house or car,” said Steve Cox spokesperson for the BBB System. “We’ve found that some locksmiths have made taking advantage of consumers’ misfortune part of their business model.”

Complaints about locksmith services to the 114 BBBs serving the U.S. increased almost 75 percent from 2005 to 2006, and have continued to come in steadily during the first half of this year.

The BBB has identified Dependable Locksmith – which operates under more than a dozen different names – as a particularly disreputable locksmith. This company poses as a local locksmith in cities across the country and advertises in the yellow pages using local phone numbers and fake local addresses. A consumer might think they’re dealing with a local locksmith but their phone call is actually connected to a call center located in the Bronx borough of New York City.

Consumers are quoted a reasonable price over the phone but when the locksmith arrives – typically in an unmarked vehicle – he demands significantly more money than originally quoted, often only accepting cash.

A complaint from Cleveland, OH, where Dependable Locksmith was operating under the name “Superb Solutions,” alleges the company quoted fees of $39 and $84 for separate jobs, but the bill ended up at $471, which included add-on fees such as a $65 breaking in fee and a $58 fee to uninstall old locks.

Another complainant reported that the locksmith sent to let her into her car demanded she pay twice the price quoted over the phone. The locksmith offered to drive her to an ATM to get cash – feeling unsafe, the victim refused. The victim was ultimately forced to write a check made out personally to the locksmith as he would not let her into her car until she did so. She cancelled payment on the check the next morning, but eventually filed a police report after the locksmith harassed her with continuous phone calls about payment.

The BBB has also heard many complaints from victims who say they were charged for unnecessary services. For example, complainants suspect locksmiths sent over by Dependable Locksmiths of pretending they couldn’t simply pick the lock so that they could charge more and install all new locks in homes.

Some of Dependable Locksmith’s aliases include, Superb Solutions, Locksmith 24 Hour, Inc., USA Total Security, Priceline Locksmith, and S.O.S. Locksmith.

Two other locksmith contractors fleecing consumers are Basad, Inc. – which operates under more than 50 names nationwide, such as A-1 Locksmith Service, A-1 24 Hour Locksmith, A-1 Lock & Key Locksmith, and AAA Locksmith 24 Hour – and Liberty Locksmith. Similar to Dependable Locksmith, they pose as local locksmiths and run full-page yellow pages ads with multiple phone and address listings. The phone numbers appear to be local, but connect to national call centers such as Liberty’s in New York City, while the addresses end up belonging to other established businesses in the local area, or are simply non-existent.

Liberty Locksmith had been a BBB member in Tulsa, OK, but during normal BBB member validation processes, it was discovered that the addresses provided by the company were false. In June 2007, the BBB terminated the membership of Liberty Locksmith for providing false information in its membership application and providing misleading advertisements to the public.

Like others, Liberty Locksmith and Basad, Inc. use common cons such as quoting one price over the phone, but then charging significantly more on site.

“These companies are very good at posing as trustworthy locksmiths,” said Mr. Cox. “Before you find yourself in the unfortunate position of being locked out of your car or house, do your research and find a truly dependable locksmith in your area. Ask around and always check with the BBB first to find reputable businesses.”

If you feel you’ve been taken advantage of by Dependable Locksmith, Liberty Locksmith, Basad. Inc., or others, please contact the BBB to file a complaint, or do so online at http://www.bbb.org./

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Know the Facts about Reverse Mortgages

For older homeowners who are looking for a way to tap into the equity they have built up in their homes over the years, a reverse mortgage can be a good solution. Reverse mortgages allow homeowners to turn their home equity into spendable cash without having to make monthly interest or principal payments.

Under a reverse mortgage, the lender sends the borrower money via a lump-sum payment, a line-of-credit, monthly check or a combination of all three. The homeowner is not required to pay back any of the loan advances or interest until the loan term is over. Generally, no repayment is due until the borrower no longer occupies the house.

Before venturing into a reverse mortgage the Better Business Bureau, along with the Federal Trade Commission suggest that homeowners consider the following facts:

• Reverse mortgages are rising-debt loans. The interest is added to the principal loan balance each month, because it is not paid on a current basis. The amount you owe increases over time as the interest compounds. Some reverse mortgages have fixed-rate interest; others have adjustable rates that can change over the lifetime of the loan.


• Reverse mortgages use up some or all the equity in your home, leaving fewer assets for you and your heirs.


• There are three types of reverse mortgages — Federal Housing Administration (FHA)-insured, lender-insured, and uninsured — and these vary according to their costs and terms. Check the features of each to select the type that is best-suited for your needs. Before considering any reverse mortgage, consult with family members, your attorney, or financial advisor.


• Reverse mortgages typically charge loan-origination fees and closing costs. Insured plans charge insurance premiums, while some plans have mortgage servicing fees. You may be able to finance these costs if you want to avoid paying them in cash. But, if you finance the costs, they will be added to your loan amount and you will pay interest on them.


• Your legal obligation to repay the loan is limited by the value of your home at the time the loan is repaid. This could include any appreciation in the value of your home after your loan begins.

The federal Truth in Lending Act (TILA) is one of the best protections you have with a reverse mortgage. TILA requires lenders to disclose the costs and terms of reverse mortgages. This includes the Annual Percentage Rate (APR) and payment terms. If you choose a credit line as your loan advance, lenders also must tell you of charges related to opening and using your credit account.

Before signing any contracts for a reverse mortgage, be sure to check on the reliability of the company with the BBB at http://www.bbb.org/. The BBB also provides complaint and dispute resolution assistance for consumers to seek recourse and achieve a fair settlement if they have been treated unfairly in the lending process.

For more specific information about reverse mortgages contact the Home Equity Information Center of the American Association of Retired Persons (AARP) or go to http://www.aarp.org/money/revmort//.

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AKC, BBB Warn of Puppy Scams

The American Kennel Club® (AKC®) and the Council of Better Business Bureaus (CBBB) are warning consumers about scams targeting unsuspecting puppy buyers.

Both the AKC and the CBBB have recently received a number of reports from consumers throughout the nation who have lost money after responding to online or newspaper classified advertising. Commonly, the scammer —posing as a breeder—will place an ad offering free or inexpensive puppies. Communicating solely through emails, the scammer may claim that he/she is affiliated with a religious organization and is being relocated to a foreign country and needs to re-home the puppies.

“The consumer can be taken in by the sincerity of the scammer, who’ll say that they don’t care about money and just want to find a good home for their beloved puppies,” said Bill Moak, President of the BBB Mississippi. “But then the fees for shipping the pet mount up and the consumer can lose hundreds of dollars before realizing they’ve been conned and will never get their puppy.”

“This is certainly not the only scam to be aware of, but it is a common one,” says AKC spokesperson Lisa Peterson. “Because of the emotional investment, consumers are more vulnerable to being taken advantage of when it comes to a cute cuddly puppy than with any other purchase. A dog is a major investment -- a living, breathing being who will rely on you for 10 years or more. Take time to educate yourself on the hallmarks of a legitimate and responsible breeder.”

The AKC and BBB offer the following advice:

• Do your research. Ask if the breeder is a member of an AKC-affiliated club and contact that club to verify membership or check recent listings of available AKC Litters from breeders at: http://www.akc.org/classified/index.cfm. You can also check with the BBB (http://www.bbb.org/) and the AKC (919-233-9767) to see if there are any complaints about the breeder. Request references and speak to other people who have purchased dogs from this breeder—especially if the breeder does not live near you.
  
• Beware of breeders who seem overly concerned with getting paid. Any reputable breeder will be far more concerned with the appropriateness of the potential pet home than what and when they are getting paid. Make sure you have clear expectations – ideally in writing – of how and when the pup will be paid for. Be especially wary of any breeder who insists that you wire money and who calls to ask for more money to be wired to cover last minute shipping fees.
  
• Don’t be fooled by a slick web site. Unscrupulous breeders and even outright scams can be represented by professional-looking web sites that lure you in with fraudulent pictures of adorable puppies. At the very least speak with the breeder on the telephone and ideally meet the breeder, the puppy and the dam in person. If you locate a breeder online, never send money without checking their references and credentials first. The AKC recommends that you first contact the national organization for the breed (Parent Club). It is essential to visit the breeder at their home to see the entire litter and the care and conditions given to the puppies prior to purchasing.
  
• Take your time. Beware of breeders who claim to have multiple breeds ready to ship immediately. It’s highly unlikely that your perfect puppy will be available for shipping on the very day you call. Gestation and socialization of a litter takes months -- no puppy should be separated from the dam before 8 weeks of age.
  
• Report a scam. Anyone who has experienced a dog-related scam should report it to their local authorities as well as their local BBB (http://www.bbb.org/) to file a complaint. Consumers can also direct questions and concerns to AKC Customer Service at 919-233-9767, or e-mail info@akc.org.
  
• “If you are sure you are dealing with an actual breeder who has a dog to sell, there are still things to be aware of,” adds Peterson. “If you expect the dog you are buying to be AKC-registrable, you must obtain documentation when you pick up the dog. Be wary of excuses such as ‘AKC hasn't sent the papers yet.’ If a breeder is doing his paperwork in a timely manner, there is no reason the AKC Dog Registration Application form should not be available, so wait until you receive it before you pay for and take home your puppy. Once you have completed the financial aspect of the transaction, there is little recourse for an unsatisfied buyer.”
  
• To learn about the hallmarks of a responsible breeder, visit:
  http://www.akc.org/press_center/facts_stats.cfm?page=responsible_breeder

How to keep your kids safe in the age of MySpace

In an age where it is commonplace for kids to know more about technology and the Internet than their parents, do you know how and where your children spend their time in cyberspace?

In a report entitled Online Victimization of Youth: Five Years Later, researchers found that approximately one in seven youth (10 to 17-years-old) received a sexual solicitation or approach over the Internet.

With kids using the Internet at school, with friends, and at home, it is important for parents to be aware of what their children are doing online, what the risks include, and what you can do to keep them safe.

Social networking groups like MySpace, Facebook, and Friendster can be a great forum for teenagers to express themselves and make friends that might have common interests. However, such groups can also be dangerous if young people get involved with predators. Many of these websites allow users to create profiles with contact information, pictures, and journals.

Child abductors and other criminals may use such websites to lure kids into meeting in-person by lying about their age and interests. While MySpace, Facebook, and Friendster cater to teens, other sites advertise themselves as offering chat for “Kids.” Don’t be taken in by the name. They often do not screen for age and allow adults, pretending to be children, to participate.

Make sure to not only check on the names of the sites used by your children, but to visit the sites and use them. Remember, if a site allows your child to post information such as an email address, a full name, or a street address, your child can be contacted by anyone who sees that post online.

If your child is under 13 years of age, a site that allows posting without prior parental permission is probably in violation of the Guidelines of the Children’s Advertising Review Unit (“CARU”) and of Federal law. If you have any question or complaints regarding websites used by your children, contact CARU at http://www.caru.org/. Additional information has been published by the National Center for Missing and Exploited Children at http://www.missingkids.com/missingkids/servlet/PageServlet?LanguageCountry=en_US&PageId=1478.

Savvy Strategies for Surviving a Fender Bender

The Better Business Bureau (BBB) says that just as consumers must be vigilant about checking out credentials when choosing contractors to do needed repairs on their homes, consumers should be just as prudent after an accident in checking out which collision repair center is the most qualified to fix one of their most expensive possessions. With more than 35,000 auto body repair shops nationwide, there are a lot of choices.

And there is a lot of demand. According to the U.S. Department of Transportation’s most recent statistics, there were nearly 6 million reported non-fatal motor vehicle traffic crashes in 2005. Most of these vehicles likely ended up at a collision center, where the average repair bill was $2,200 to $2,300 and where 80 to 92 percent of the work involved auto insurance claims.

“Although an insurance company may make some recommendations, drivers have a choice when selecting an auto body repair shop," says Bill Moak, President of the BBB Mississippi. "Choosing a trustworthy shop is very important for ensuring the best possible results.”

The National Auto Body Council (NABC), a not-for-profit organization representing all segments of the collision repair industry, agrees. “Despite many stereotypes about auto collision repair shops, the reality is that the industry has a high degree of professionalism and integrity,” said Chuck Sulkala, Executive Director the NABC and a second generation owner of an auto body repair business in Boston.

“One of the things that is least understood by motorists is that when a damaged car is brought in for repairs, the repair contract generally is only between the vehicle owner and the repair shop, not the auto insurance company,” said Sulkala. “It’s usually the owner’s responsibility to choose a trustworthy, quality oriented shop that will repair his or her car safely and protect its resale value.”

Choosing a shop can be confusing. So the CBBB and the NABC have teamed up to help consumers better manage the collision repair experience with tips on choosing a trustworthy shop, saving money on a replacement rental car and knowing how to settle any disputes. More information on “Wiser Drivers Wise Up” is available at .

Choose a Trustworthy Collision Repair Shop
Compare collision centers before you need one. In addition to asking friends and relatives for recommendations on shops that have performed quality work for them in the past, check the shop’s qualifications by asking about advanced technician training from a national organization such as the Inter-Industry Conference on Auto Collision Repair (I-CAR) or National Institute for Automotive Service Excellence (ASE) certification.

Verify commitment to ongoing training and customer satisfaction. One way is to look for decals or plaques indicating the shop’s current membership status in industry associations, local business groups and consumer agencies such as the Alliance of Automotive Service Professionals (AASP), Automotive Service Association (ASA), Society of Collision Repair Specialists (SCRS), National Auto Body Council (NABC), and the Better Business Bureau. Verifying information on the BBB Web site at http://www.bbb.org/ will indicate whether the shop maintains a good reputation.

Arrange a Replacement Rental Car. Ask the shop to pre-arrange a rental car. Since the average car is in the repair shop for two weeks, ask if the shop can make recommendations for a rental car company and if they can make arrangements for a replacement rental car to be ready when you drop off your car.

Save on the cost of a replacement rental car. If your auto insurance policy includes replacement rental car coverage, which usually is only a couple dollars a month, you may get a rental car for little or no money. Keep in mind that one full-year of replacement rental car coverage may be less than the cost of a one-day rental car if you have to pay out of pocket. See an insurance professional for details.

Get Everything in Writing Upfront. Review price estimates for work and parts. Get a written repair and price estimate of the work to be performed, as well as an explanation of why specific recommendations are necessary to correct the collision damage before the job begins. Also obtain an itemized list for all parts and services, with prices, identifying any used or re-manufactured parts.

Ask about a warranty. Professional, reputable repair shops will stand behind their repair work by offering a warranty. Usually this warranty is for a specific time – from 30 days to lifetime – and covers the labor, materials used and installation. The actual parts will be covered by the manufacturer’s warranty.

Don’t shop for price alone. The lowest estimate could indicate that the shop’s estimator has improperly assessed the vehicle’s damage or that the shop specializes in “quickie” repair jobs and poor quality. If you get a quote that is significantly different from another shop, ask the estimator to explain why the quote is so different before you make a decision about where to have the car repaired.

Your satisfaction is important. Inquire in advance about the auto body repair shop’s policy in the event you are dissatisfied with the repair. Will they fix it at no additional charge and how long will the extra repairs take? Once the repair is completed, tell the technician or business owner before leaving the repair shop if you notice any problems with the body work of your automobile. It is best to bring up any concerns immediately in order to confirm a problem is a result of incorrect repair work. If you do happen to notice a problem after you get the car home, call the repair shop immediately and let them know that you will be returning your automobile for additional repairs.

The collision repair business is a $38.2 billion industry, with paint and body repair shops accounting for more than half of the collision repair market at $20.8 billion, according to the 2006 Collision Repair Trends: Industry Statistics & Analysis, published by the Automotive Aftermarket Industry Association (AAIA).

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Credit Repair Fraud Proliferates

The truth is, no one can legally remove accurate and timely negative information from a credit report. But the law does allow you to request a reinvestigation of information in your file that you dispute as inaccurate or incomplete.

There is no charge for this. Everything a credit repair clinic can do for you legally, you can do for yourself at little or no cost. According to the Fair Credit Reporting Act, you are entitled to a free copy of your credit report if you've been denied credit within the last 30 days, and you can request a free copy of your credit report annually for free by visiting www.annualcreditreport.com. You can also dispute mistakes or outdated items for free. Ask the credit reporting agency for a dispute form or submit your dispute in writing, along with any supporting documentation.

If you decide to respond to a credit repair offer, the Better Business Bureau suggests you beware of companies that:

• Do not tell you your legal rights and what you can do -- legally -- for free;
• Recommend that you not contact a credit bureau directly;
• Want you to pay for credit repair services before any services are provided; or
• Advise you to dispute all information in your credit report or take any action that seems illegal, such as creating a new credit identity by obtaining a federal employer identification number to use instead of a social security number. If you follow illegal advice and commit fraud, you may be subject to prosecution.
  

Also, remember that it's a federal crime to make false statements on a loan or credit application, to misrepresent your Social Security Number, and to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses.

Understanding Your Credit Score

Information in your credit report or credit file is used to formulate your credit score. This number, which can range between 300 and 850, depending on the credit reporting agency, summarizes your creditworthiness. It helps potential lenders, landlords, employers to quickly gauge your credit history and predict how likely you are to make your credit payments on time. They look at your credit score to decide what kind of risk they assume if they approve your application.

Each credit reporting agency uses a different scoring model so your credit score may vary from agency to agency. Nonetheless, the scoring models are mostly influenced by the following: how you pay your debts and how much debt you owe. When formulating your score, each agency pays close attention to:

• Your payment history. Do you pay your credit accounts on time? Are there bankruptcies or other negative items on your record?
• How much you owe. What is the total owed on all of your account? What percent of your available credit are you using? Is your debt load manageable?
• The length of your credit history. For how many years have you demonstrated responsible credit management?
• Have you recently applied for or opened new credit accounts?

Most people have a credit score in the 600s and 700s. Scores above 700 are a sign of financial health and can earn you relatively low "prime" interest rates and favorable lending terms. People with scores about 760 are charged the lowest rates.


If your credit score is below 600, lenders will view you as high risk. They could turn down your credit application. You may have to use a "sub prime" lender who will offer you less favorable payment terms. You will be charged much higher interest rates and will probably have to make a larger down payment.

If you are married, be aware that you and your spouse do not share a credit score. In fact, each spouse has a separate score that reflects his or her own past credit history.

For more information about credit, visit http://www.bbb.org/alerts/article.asp?ID=616. For a chart that explains how credit scores are derived, click here: http://en.wikipedia.org/wiki/Image:Credit-score-chart.svg.

Spotting Rogue Movers Before They Have Your Goods

Spring is in the air and for sale signs are sprouting up along with crocuses and daffodils, as many families prepare to change residences. Those who decide to relocate may opt to leave the moving to professionals instead of doing it themselves. Be warned though, rogue movers are operating coast to coast, blending into the crowd of legitimate movers and luring unsuspecting consumers.

The Better Business Bureau System logged more than 9,000 complaints in 2006 against movers. While there are thousands of reputable moving companies, there are times when the experience is not so positive.

Rogue movers can be hard to spot. They often give low-ball estimates over the phone or Internet without ever visiting your home or seeing the items you want to move. Once your household goods are on their truck, they demand more money before they will deliver or unload them. Consumers tell BBBs that their goods have been held hostage and many have been forced to pay more than the initial estimate they agreed too in order to get their goods back.

The BBB and the Federal Motor Carrier Safety Administration suggest that your best defense is to recognize a rogue mover before they have your household goods. Here are some “red flags” to look for:

• The mover or broker does not offer or agree to an on-site inspection of your household goods.
• They only give you an estimate over the phone or Internet. The estimates often sound too-good-to-be-true. In reality, they usually are.
• The moving company’s only form of acceptable payment is cash or a large deposit before the move.
• The company’s Web site has no local address and no information about licensing or insurance.
• The company claims all goods are covered by their insurance.
• The mover does not provide you with a copy of “Your Rights and Responsibilities When You Move,” a booklet movers are required by Federal regulations to supply to their customers in the planning stages of interstate moves.
• Offices and warehouse are in poor condition or nonexistent.· On moving day a rental truck arrives rather than a company-owned and marked fleet truck.

The BBB advises consumers to:

• Obtain a cost estimate in writing, preferably after a walk-through of your home or apartment.
• Don’t select a mover based on price alone. In many cases, you get what you pay for.
• If you have a bad feeling about your mover’s tactics or charges, stop the move before your household goods are loaded on the truck; and,
• Start planning your move by reviewing BBB business reliability reports at www.bbb.org to help you find trustworthy carriers before making any hiring decisions or signing any contracts.

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Integrity Awards Winners Announced

Three Mississippi companies have been awarded Integrity Awards by the Better Business Bureau of Mississippi and the Mississippi Business Journal.

The winners in each of three size categories were announced Thursday, March 29 at the Mississippi Telecommunications Center in Jackson. An estimated 170 people were on hand to witness the presentation of the 5th Annual Mississippi Business Integrity awards. Winners were chosen from among 13 finalists. They included:

• Category 1 (1-10 Employees): Central Appliance, Pascagoula
• Category 2 (11-99 Employees): Quality Manufacturing Group, Columbia
• Category 3 (100 or more Employees): CenterPoint Energy, Ridgeland
  

Two individual awards were presented – the Torchbearer Award and the CEO of Integrity Award. The Torchbearer Award, recognizing a business leader who has demonstrated integrity and ethics over a career, was presented to Hartley Peavey of Peavey Electronics in Meridian.

The CEO of Integrity Award, which goes to a CEO chosen from among the finalist companies in current or past competitions, was awarded to Anthony Topazi of Mississippi Power in Gulfport.

This year’s finalists and winners become part of the “Circle of Honor”. Other 2007 Circle of Honor inductees include: The Citizens Bank of Philadelphia, DNA Services of Jackson; Estabrook Toyota Lincoln Mercury of Pascagoula, Health Management Associates (MS Division) of Flowood, Lamia’s Boutique of Madison, Shoppingbargains.com of Starkville, Specialty Windows of Hattiesburg, Tempstaff of Jackson, Westgate Cleaners of Hattiesburg and WJTV Television of Jackson. New this year was the Integrity First Award, recognizing an especially outstanding entry response packet. That honor went to Quality Manufacturing Group of Columbia.

“We had a wonderful response to the Integrity Awards this year,” said Bill Moak, President of the Better Business Bureau of Mississippi. “The judges had many great entries. “They prove that success in business does not mean that you must make ethical compromises, and that a company’s ability to survive challenges is directly related to its commitment to a strong commitment to being a good corporate citizen.”

The winners will go on to compete in the International Torch Awards for Marketplace Ethics. Winners will be announced in early 2008 by the Council of Better Business Bureaus.

The BBB Mississippi serves consumers and businesses in 76 Mississippi counties with a variety of services including issuance of business reliability reports; dispute resolution, including handling of complaints, arbitration and mediation; advertising review; and consumer education. The organization is supported by its nearly 2,700 member businesses. The BBB’s services are available online at www.bbbms.org or by calling (800) 987-8280.

BBB Warns of Deceptive Travel-Related Promotions

Better Business Bureaus across the United States and Canada are warning consumers about an increase in deceptive travel-related offers.

Consumers are contacting the BBB to inquire about travel companies that promise "too-good-to-be-true" travel deals. These offers arrive unexpectedly in consumers' mailboxes, or over the telephone, office fax machine or Internet.

Typically, the consumer is told that they have won a "free" trip and must call a number to claim their prize. Or they receive a fax at their place of business promoting an unbelievable vacation deal that looks as if it came through inter-office channels. Others were contacted by someone offering a travel club membership, allegedly worth thousand of dollars.

According to BBB experiences, some bogus promoters have been known to take consumers' money, without providing the travel or trip that was promised. Other promoters advertise rock-bottom prices, but hide certain fees until the deal is sealed. Some promise luxurious accommodations and services, but deliver far less. Still others don't reveal that the deal includes an obligation to sit through a timeshare pitch at the destination. Finally, some promoters guarantee consumers that they can get a full refund if they decide to cancel the trip, but fail to make good on their promise.

"This is the time of year when consumers are planning their spring break and summer vacations. We urge travel planners to verify the reliability of the business that is offering the travel services or accommodations, and obtain in writing all travel package details before you pay any fee, no matter how small," said Bill Moak, President of the Better Business Bureau of Mississippi.

Consumers are encouraged to obtain the names, addresses and telephone numbers for the lodgings, airlines and cruise ships advertised in a vacation promotion.

"Armed with that information, you can check with the BBB or a recognized travel organization to find out whether the business has been the subject of customer complaints. BBBs offer reports on travel-related businesses in both the U.S. and Canada," said Moak.

Fraudulent travel deals can be hard to distinguish from legitimate ones. Their intent is to lure people into buying vacations that they otherwise would not consider.

The BBB recommends that consumers get the details of the promotion in writing, including the refund and cancellation policy, before they send a check or provide credit card number information. If asked to provide a credit card or bank account number for verification or identification, the BBB says to reconsider. This information can be used to make fraudulent charges or debits to the consumer's accounts.

If you are tempted to respond to online travel solicitations, the BBB recommends that you not judge the agency solely by the appearance of its Web site. Online travel scams are increasing in part because it is easy to disguise your identity in cyberspace.

"Don't assume that everyone who contacts you online is who they say they are," said Moak.

BBB, MBJ Announce Integrity Awards Finalists; Awards March 29

Thirteen Mississippi companies have been selected as Finalists for the 5th Annual Mississippi Business Integrity Awards. The winners will be announced at a luncheon at noon March 29 at the Mississippi Telcom Center in downtown Jackson. The awards are being conducted by the Better Business Bureau of Mississippi in partnership with the Mississippi Business Journal, with judging being conducted by the Rotary Club of Madison-Ridgeland.

The winners will have the opportunity to compete for the International Torch Awards for Marketplace Ethics. Finalist companies will be inducted into the BBB’s Circle of Honor.

2007 Finalists (in alphabetical order) include: CenterPoint Energy, Ridgeland; Central Appliance Company, Pascagoula; The Citizens Bank, Philadelphia; DNA Services of America, Jackson; Estabrook Toyota Lincoln Mercury, Pascagoula; Health Management Associates, MS Division; Lamia’s Boutique, Madison; Quality Manufacturing Group, Columbia; Shoppingbargains.com, Starkville; Specialty Windows, LLC, Hattiesburg; Tempstaff, Inc., Jackson; Westgate Cleaners, Hattiesburg; and WJTV Television, Jackson.

Two individual awards will also be presented at the event: The Torchbearer Award, recognizing a business leader who has established a record of ethical leadership suitable for others to follow; and the CEO of Integrity, chosen from among current or past finalist or winner companies.

For tickets to the Integrity Awards event, or for more information, call (800) 987-8294 or email operations@bbbms.org.
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BBB Warns that Iraqi Dinar Investment is Creating Concerns and Complaints

The Council of Better Business Bureaus is warning consumers across the United States and Canada to be wary when considering foreign currency investment, particularly alleged investment deals for the Iraqi Dinar.

The Better Business Bureau of Chicago and Northern Illinois has seen a recent spike in consumer complaints focused on Dinar investment. The BBB continues to field an increasing number of complaints from around the world, with many coming from military personnel claiming fraud over Dinar investment deals.

According to BBB Chicago and Northern Illinois President & CEO Steve J. Bernas, “our office has received 77 complaints concerning United World Exchange from consumers in 33 states and eight countries including Singapore, Australia, Malaysia, Canada and Iraq.

United World Exchange, purportedly of Oak Brook, IL, doing business as “US Dinar,” has been selling Iraqi Dinars through their website – www.usdinar.com – on the premise that buying the Dinars could be a great investment if the value of the Iraqi money were to increase.
Potential investors claim to have bought Iraqi Dinars for anywhere between several hundred to several thousand dollars, with the hope that this may possibly be a lucrative investment for them if the value of the Dinars goes up.

Consumers report that United World Exchange/US Dinar is allegedly selling Iraqi currency online and is not providing consumers with what they have purchased, nor are they giving the potential investors their money back.

Bernas went on to say many civilian contractors and soldiers serving in Iraq have also filed complaints with the BBB from abroad and most have reported the same type of experience. He also noted that United World Exchange/US Dinar has stopped responding to the BBB.

A BBB representative visited the supposed Chicagoland location of United World Exchange/US Dinar. However it turns out the address is for a company renting office space. No representative for the United World Exchange/US Dinar was available on site.

“Anyone who trades in foreign currency should be an expert in that vehicle and you are better off participating in the growth of the American economy by investing in a good growth mutual fund,” commented William E. Braun, Jr., CFP(r), Financial Educator/Counselor, Fleet and Family Support Center at Naval Station Great Lakes.

Bernas added, “The alleged investment opportunity is especially concerning because it involves taking advantage of all investors including our men and women who are serving in our military both overseas and in this country.”

Consumers who have purchased Dinars and have not received them are urged to report the issue to the Chicago and Northern Illinois BBB office via their Web site, www.chicago.bbb.org or by calling 312.832.0500.

BBB, Partners to Hold "Community Shred It Days"

Shredding is considered to be a key element in your efforts to protect yourself against Identity Theft, which has become the nation's fastest-growing white collar crime.

To help raise awareness of the need for people to shred their sensitive documents, and in observance of National Consumer Protection Week, the Better Business Bureau of Mississippi (BBB) is teaming up with a number of state and local organizations, businesses and government agencies to hold four "Community Shred It Days" events on Feb. 9 and 10, 2007. Onsite shredding trucks from Shred-It! document shredding service will be parked in the parking lots of the locations listed below from 9 a.m.-4 p.m.. Individuals may bring up to five bags of documents per person. (No businesses, please.)

The events will be held at the following locations:

Feb. 9, 9 a.m.-4 p.m.

Southaven: Wal-Mart Supercenter
6811 Southcrest Parkway
Southaven, MS 38761

Jackson: The Home Depot
6325 I-55 North
Jackson, MS 39213


February 10, 2007, 9 a.m.-4 p.m.

Hattiesburg: Wal-Mart Supercenter
6072 Highway 98 West
Hattiesburg, MS 39402

Gulfport: Wal-Mart Supercenter
9350-A Highway 49
Gulfport, MS 39503

"We urge consumers to bring any documents with their name, address, account numbers or other information to one of these four locations to be destroyed free of charge," said Bill Moak, BBB Mississippi President and CEO. "You'd be surprised how much information you give out when you throw it away."

Often, crooks can get valuable information about you from your trash, such as bank statements, pre-approved credit card solicitations, and bills. The practice of "dumpster diving" (when crooks rifle through your garbage looking for information) is on the rise. Examples of some types of old documents you might want to consider shredding include:

• Bank, Credit Card and Investment Account Statements.
• Cancelled checks.
• Credit Card Solicitations.
• Address lists, such as those from your child's class at school or from groups to which you belong.
• Utility bills.
• Anything with your name, address, or personal information.

Community Shred Days are sponsored by these organizations: Mississippi Attorney General's Office; Better Business Bureau of Mississippi; Mississippi Secretary of State's Office; Mississippi State University Extension Service; Mississippi Leadership Council on Aging; Shred-It; Wal-Mart; The Home Depot; Coca-Cola and BancorpSouth.

Multilevel Marketing Plans Could be Pyramid Schemes!

Multi-level marketing plans, also known as "network" or "matrix" marketing, are a way of selling goods or services through distributors. These plans typically promise that if you sign up as a distributor, you will receive commissions -- for both your sales of the plan's goods or services and those of other people you recruit to join the distributors. Multilevel marketing plans usually promise to pay commissions through two or more levels of recruits, known as the distributor's "downline."

If a plan offers to pay commissions for recruiting new distributors, watch out! Most states outlaw this practice, which is known as "pyramiding." State laws against pyramiding say that a multilevel marketing plan should only pay commissions for retail sales of goods or services, not for recruiting new distributors.

Why is pyramiding prohibited? Because plans that pay commissions for recruiting new distributors inevitably collapse when no new distributors can be recruited. And when a plan collapses, most people -- except perhaps those at the very top of the pyramid -- lose their money.

To help you avoid becoming involved in a pyramid scheme, the Better Business Bureau suggests the following:

• Avoid any plan that includes commissions for recruiting additional distributors. It may be an illegal pyramid.
• Beware of plans that ask new distributors to purchase expensive inventory. These plans can collapse quickly -- and also may be thinly-disguised pyramids.
• Be cautious of plans that claim you will make money through continued growth of your "downline" -- the commissions on sales made by new distributors you recruit -- rather than through sales of products you make yourself.
• Beware of plans that claim to sell miracle products or promise enormous earnings. Just because a promoter of a plan makes a claim doesn't mean it's true! Ask the promoter of the plan to substantiate claims with hard evidence.
• Beware of shills -- "decoy" references paid by a plan's promoter to describe their fictional success in earning money through the plan.
• Don't pay or sign any contracts in an "opportunity meeting" or any other high-pressure situation. Insist on taking your time to think over a decision to join. Talk it over with your spouse, a knowledgeable friend, an accountant or lawyer.
• Do your homework! Check with the Better Business Bureau and state Attorney General about any plan you're considering -- especially when the claims about the product or your potential earnings seem too good to be true.

5th Annual Business Integrity Awards Announced

The Better Business Bureau of Mississippi (BBB) is seeking nominees for the prestigious 5th annual Mississippi Business Integrity Awards, sponsored by the BBB of Mississippi and the Mississippi Business Journal. Nominations for the awards program are open to any for-profit Mississippi business or corporation, and will be taken through January 31, 2007.

"This program has grown into a Mississippi tradition which highlights positive business practices,” said Bill Moak, BBB Mississippi President and CEO. “If you know of a business which deserves recognition, we encourage you to nominate them.”

More than 200 companies have been nominated during the previous four competitions. Nominees are judged in four size categories based on the number of employees. The winners of the 2006 competition were: Insight, Ltd., The Cirlot Agency; Cellular South, and Mississippi Power Company.

2007 winners will be announced at a luncheon event in March at the Mississippi Telcom Center in downtown Jackson. The BBB will also present two individual awards for business leaders: the Torchbearer Award (presented to a business leader who has demonstrated integrity over a career), and the CEO of Integrity Award (presented to a CEO from among finalist companies).
Nominations may be sent via email to operations@bbbms.org or by going to http://www.bbbms.org/integritynom.asp.

You may also call (800) 987-8294 to request a nomination form. The deadline for nominations is January 31, 2007.

There is no cost to enter the competition, and nominations may be submitted by businesses or consumers. The four winners will be entered into the Better Business Bureau’s international Torch Awards for Marketplace Ethics.

The award is open to all for-profit businesses that serve retail and wholesale markets. Businesses with governmental entities (local, state or federal) as primary markets are not eligible, nor are government agencies and not-for-profit organizations. Businesses based in other states, but with Mississippi operations, are eligible. Businesses do not have to be members of the Better Business Bureau to be eligible, but they must have a satisfactory record with the BBB to be considered.

“If you know of a company with high standards, you should nominate them and help them get the recognition they deserve,” Moak said. For more information, call the BBB Mississippi at (800) 987-8294.

Refund Anticipation Loans May be Costly!

Tax refunds represent a windfall for many people eager to receive needed cash. With increased popularity in the last several years, tax preparers are offering what are called “Refund Anticipation Loans” (RALs) to taxpayers who file electronically. RALs allow you to get cash in just a day or two and pay the money back with your refund.

The problem is that the lender fees associated with RALs can translate into annual percentage rates (APR) of about 60 to 650%, far greater than the cost of other kinds of loans. RAL's also are more likely to negatively affect the working poor, hitting them at a time when holiday purchases made on credit are about to hit their wallets.

"Ironically, many people don't know that they can get their actual tax refund in as little as two weeks if they file their taxes electronically," said Bill Moak, President of the Better Business Bureau (BBB) of Mississippi. "If you can wait a few weeks longer, it makes good financial sense."

Here are three alternatives you may want to consider:

• Wait a couple of weeks.
  If you go ahead and file your return electronically, your refund will be processed and in your hands with little or no additional charges. And, if you get your refund direct deposited into your bank account, it may be even sooner. Even if you have urgent bills to pay, is it worth it to take out a new pricey loan to take care of an old bill?
• Consider reducing or eliminating your tax refund.
  If you have received a tax refund it means that each paycheck you get is less than it could be. By making adjustments in your W-2 form, by increasing your “personal allowances,” you can increase your paycheck, so that you get more money spread out over the whole year, rather than in one lump sum at tax time. This means that, by the time you file your tax return, almost all of the money you would be borrowing against your tax return would already be in your bank account.
• Get free tax assistance.
  The IRS Volunteer Income Tax Assistance (VITA) program, which operates with IRS-trained volunteers, can be found in libraries, community centers, and other locations during tax time. For the nearest VITA site, call (800) TAX-1040.