The Better Business Bureau of Utah (BBB) received more than 16,000 complaints this year. We’ve able to resolve 79% of these complaints, with the help of the companies in question. Below is a list of the top ten complaint categories for 2009, to help customers become more savvy when they spend their hard earned money.
- Trial Offers/Negative Option Plans
A trial offer for under $5.00 is too good to be true. The consumer signs up for a “free” trial of a pill to lose weight, get government grant information, make money with Google, or numerous other products or services. Consumers are then automatically charged monthly fees for more of the product or other products they weren’t aware of.
BBB Advice: Read the terms and conditions (don’t just skim, sometimes companies put dollar amounts as words – twenty nine dollars and ninety nine cents – instead of $29.99, which is easier to spot) carefully before you give payment information. Don’t use a debit card that can drain your account and cause fees for insufficient funds (after charges that you weren’t aware of are deducted).
- Door-to-Door Alarm Sales
Complaints state that consumers were not informed about the length of the contract or the total of the fees for a security system in their home.
BBB Advice: Read the contract that you are required to sign, it should state how much the monthly fees are and how long you are obligated to continue to pay the company (length of the contract). Get any promises from the salesperson in writing.
- Government Grant Services
The government does give grants, but not to help consumers pay their bills and get out of debt. Blogs, emails and Web sites lure customers to pay monthly or annual fees to get access to information about government grants.
BBB Advice: The U.S. Government offers free information about grants. The government does not pay bills or have programs to help you get out debt.
- Business Opportunities
Consumers state that for hundreds to thousands of dollars they were told that they could learn how to flip houses, become a Forex trader, sell stocks, sell other products from home, etc.
BBB Advice: If you can’t afford to lose the money that you have to pay the training program company, don’t get involved. Make sure you get any money making promises (e.g. you’ll make all your money back in two months) in writing prior to signing the contract (either via e-signature or signing and faxing the document). Ask what percentage of people who start the program complete it and what is the average income of participants.
- Web Designers
Complainants state that time frames given are not met and designs that the company makes are not what the consumer anticipated.
BBB Advice: Ask for time frames in writing (with specific dates) and what happens if that date is not met. What is the refund policy (will they give you your money back, a prorated amount or none at all) and what is your obligation (getting the company information). Ask for references and call these past or current customers.
- Online Shopping Sites
Non-receipt of products is one of the main complaints the BBB receives from consumers regarding online companies.
BBB Advice: Know details about the company before you buy. What are their shipping and refund policies, where are they located and do you have a way to contact them if there is a problem. Never buy with a debit card – use a credit card which gives you some protection (you can dispute the charge).
- Work-at-Home Companies
Stuffing envelopes is still a scam. Making jewelry or potholders and selling them to a company for pennies won’t earn you quick money.
BBB Advice: If it sounds too good to be true, it probably is. Check with the BBB if it sounds like easy money or check with the U.S. Postal Service.
- Fraudulent Checks
If you haven’t gotten a fake check yet, you’ll probably get one in 2010! Numerous reasons for the checks are invented: Overpayment (they want to buy your boat, car or iPod), Mystery Shopping, Foreign Lottery or House Rental.
BBB Advice: Remember that banks are required by law to give you the money from any check deposited within three to five days. That does not mean that the check is good. If you receive a check that is an overpayment or for something that sounds too good to be true, don’t participate. That check may not bounce for several weeks and you will be stuck with all the fees associated with it when it does.
- Credit Card Companies
Increased interest rates sparked a lot of complaints this year, mainly from consumers who say they were faithful in paying the minimum balance as required – on time.
BBB Advice: Read your credit card bill and any inserts with it each month. Companies are required to notify you of increases in interest rates and you can opt-out (although that does stop your ability to charge).
- Payday Loans
Complaints state that consumers are unable to reach the company that they got the payday loan from (the company is out of the state or even out of the country!), and money keeps getting withdrawn from their account.
BBB Advice: If you need a payday loan company, make sure it is a reputable company (always check www.bbb.org first) that has a physical location you can visit to discuss any concerns. Read up on what the law is regarding the payday loan company’s requirements.
The Better Business Bureau of Utah is a 501 (c)(6) not-for-profit corporation serving the entire state of Utah. The organization is funded primarily by membership dues from more than 2,800 local business and professional firms. The BBB promotes integrity, consumer confidence and business ethics through business self-regulation in the local marketplace. Services provided by the BBB include reliability reports on companies and charitable organizations, general monitoring of advertising in the marketplace, dispute resolution services, and consumer/business education programs. All services are provided at no cost to the public, with the occasional exception of arbitration. Visit www.utah.bbb.org or call 801-892-6009.