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.