Telephone Collection Scam Related to Delinquent Payday Loans

The Internet Crime Complaint Center (ICA), has reported an increase telephone collection scams related to delinquent payday loans.


The typical payday loan scam involves a caller claiming the victim is delinquent on a payday loan and must make payment to avoid legal consequences. Callers pose as representatives of the FBI, Federal Legislative Department, various law firms, or other legitimate-sounding agencies, and claim to be collecting for debt collection companies. The scammer relentlessly calls the victim, and refuses to provide information regarding the alleged loan, and often becomes abusive when questioned.

A new variation of this scam has been popular recently where the caller tells the victim there are outstanding warrants for their arrest for non-payment and hacking into a named business with the intent of obtaining customer information. During the perpetration of this crime, the caller demands payment via debit/credit card; in other cases, the caller further instructs victims to obtain a prepaid card to cover the payment.

If you are contacted by someone who is trying to collect a debt that you do not owe, you should:

• If you have received a legitimate loan and want to verify that you do not have any outstanding obligation, contact the loan company directly;

• Contact your local law enforcement agencies if you feel you are in immediate danger;

• Contact your bank(s) and credit card companies and request an alert be put on your file;

• Report any online fraud to the ICA and BBB

For more consumer tips you can trust, visit http://www.bbb.org/

"Robocalls" bothering your cell phone?

Have you received a pesky automated call on your cell phone recently? Due to thousands of complaints filed from consumers, the Federal Communications Commission (FCC) created the Telephone Consumer Protection Act (“TCPA”). This act imposes clearer requirements on how businesses may obtain consent before making a telemarketing call or sending a telemarketing text to your wireless phone.

Telemarketing calls on cell phones can be a large hassle because often calls can eat up the minutes in consumers' wireless plans. These autodialed and prerecorded calls are known as “robocalls.”

Under new rules U.S. communications regulators voted to adopt last Wednesday, telemarketers will have to get written consent before placing automated calls to consumers. Telemarketers also must provide an automated opt-out mechanism during each robocall so that consumers can immediately tell the telemarketer to stop calling. These new rules eliminate the "established business relationship" exception, which had allowed robocalls to be placed to the land-line home phones of consumers with "prior or existing" associations with companies represented by telemarketers.

To register a number for the national Do-Not-Call list, visit the Federal Trade Commission’s official do not call registry at http://www.donotcall.gov/

For more information on this act, visit http://www.fcc.gov/guides/robocalls

For more consumer tips you can trust, visit http://www.bbb.org/

Better Business Bureau Joins Government Partners for Consumer Protection Event

Consumer protection information and brochures will be among the free items available from the Better Business Bureau serving Chicago and Northern Illinois (BBB) from 8:30AM to 3:00PM on March 8, 2012, in the lobby of the James R. Thompson Center, 100 W. Randolph St. in Chicago, as the BBB joins federal, state, and local government agencies and national consumer advocacy organizations in the 14th annual National Consumer Protection Week (NCPW), March 4-10, 2012.


National Consumer Protection Week focuses on giving consumers the tools they need to make smart financial decisions in today’s marketplace. This information can help people get the most for their money, whether they are trying to stretch their paychecks, find a quick fix for a spotty credit history, or distinguish the difference between a real deal and a potentially fraudulent product or service.

"The Better Business Bureau is proud to be part of this year’s National Consumer Protection Week campaign,” said Steve J. Bernas, president & CEO of the Better Business Bureau serving Chicago and Northern Illinois. “In times like these, information is one commodity that retains its value. We invite everyone to visit www.bbb.org for tools they can use to make smart choices in the marketplace.”

The BBB offers the following tips on making smart financial decisions:

• Check Them Out. Check out a business before you spend money on any product or service. Visit www.bbb.org to view the BBB’s free Business Review on the company
• Three Bid Rule. Obtain bids from three companies and carefully compare before you begin construction or any other type of work on your home or business.
• Signing Contracts. Never sign any contract that has blank spots or contains incomplete information about the work to be accomplished.
• Don’t Pay to Work. Jobs that require you to make some type of payment upfront before work begins are typically scams.
• Shred It. Protect yourself against identity theft. Shred all documents that contain any financial information. Including offers for new credit cards and loans.

The “For Consumers” section of the BBB Web site (www.bbb.org) provides consumers hundreds of specific, easy-to-understand tips including: how to get a free credit report, how to spot a telemarketing scam, dealing with debt, deterring and detecting identity theft, avoiding auto repair scams, and how to file a consumer complaint with the appropriate authorities.

For more information on consumer safe shopping or National Consumer Protection Week, visit http://www.bbb.org/

Valentine's Day E-Cards

Sending an electronic card or e-card for Valentine’s Day, is not only cost-effective, but very popular and easy. However the Better Business Bureau serving Chicago and northern Illinois (BBB) urges consumers to use caution when opening e-cards this Valentine’s Day.

People are expected to send millions of electronic Valentine’s Day cards this year. If you unexpectedly receive an e-card, be careful. Instead of carrying words of love, it might contain a computer virus.

The BBB asks to remember the following if you receive an e-card this Valentines:

• Unexpected e-cards are often the culprits that spread computer viruses.

• Suspicious emails often direct the recipient to click on a link to retrieve an e-card.

• Once the user clicks on the link, a virus is downloaded to the computer and it becomes infected.

• Those sending these types of malicious e-mails are using the names of some of the most popular electronic greeting card companies in their messages and Web links.

• Be cautious and not click on links you find in e-mails. Instead, go directly to a Web site by typing its address into a Web browser and go there on your own, bypassing links that could be malicious.

For more trustworthy information on shopping with companies you can trust go to www.bbb.org

Better Business Bureau Warns: This Valentine's Day Express Yourself with Care - Complaints Against Florists Up 47%

CHICAGO, IL - January 31, 2012 - Valentine’s Day means big bucks for florists. It is a bigger holiday than Mothers Day, Easter, and Christmas; making it their busiest day of the year. The Better Business Bureau serving Chicago and northern Illinois (BBB) cautions those looking to send flowers for their special someone to be careful when selecting a florist.


Complaints about Florists increased 47 percent in 2011 compared to 2010. Last year 588 individuals filed complaints; in 2010 that number was 398 according to the Better Business Bureau serving Chicago and Northern Illinois.

“When buying flowers consumers should be especially careful when making the purchase online or over the phone,” said Steve J. Bernas, president & CEO of the Better Business Bureau serving Chicago and northern Illinois. “Consumers need to review the description of the floral arrangement or any other gift purchased online or in conversation with the florist or sales person.”

Pay careful attention to the options offered such as size of arrangement, color of flowers, color of vase, delivery in a box or vase, and inclusion of an enclosure or gift card. Note that all the options mentioned may not be available on all sites or may involve additional charges. While you think you're ordering from a local florist, you may actually be on the phone with someone hundreds or thousands of miles away.

“Another important point is to make sure that your order is clear and detailed. Review the guarantee on the site or with the salesperson. This will help alleviate your concerns about quality or delivery,” states Bernas.

The BBB offers the following advice for safe and successful shopping for Valentine’s Day:

• Do your homework. Before ordering flowers, chocolates or any other gifts for Valentine’s Day check out the company’s Business Review at www.bbb.org in order to help prevent disappointment with the product or customer service.

• Allow time for shipping. Check with the retailer or check the web site to make sure that you have allowed enough time for delivery by your specified date. Make sure that this date is specified clearly and guaranteed when you order.

• Be wary of any email received from an unknown sender. Do not open any unsolicited email and do not click on any links provided. Fake e-cards coming from scammers/hackers may send you an infected card or send you to a link where you are could compromise your computer’s safety.

For more information on shopping with companies you can trust, visit www.bbb.org

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As a private, non-profit organization, the purpose of the Better Business Bureau is to promote an ethical marketplace. BBBs help resolve buyer/seller complaints by means of conciliation, mediation and arbitration. BBBs also review advertising claims, online business practices and charitable organizations. BBBs develop and issue reports on businesses and nonprofit organizations and encourage people to check out a company or charity before making a purchase or donation.

Get Smart Before Picking Up Dumbbells

With New Year resolutions, consumers are hitting gyms, fitness centers and training studios en masse. For those in need of workout wisdom, Better Business Bureau suggests exercising caution when choosing personal trainers.


• Run background checks. Ensure potential trainers are properly certified. To verify accreditation on personal training certification programs, check with the National Commission for Certifying Agencies. Also, find out if trainers are continuing education with specialty certifications or programs.

• Spot the right trainers. Before purchasing training packages, request free sessions to help evaluate workouts and rapport. Also, discuss goals and training options. Don't feel pressured to purchase additional sessions that don't fit fitness needs.

• Work out the details. Make sure trainers have proven track records of success. Ask for client testimonials and referrals, preferably from those with similar backgrounds and fitness goals.

• Trim waists, not wallets. Examine possible post-introductory price increases. To reduce costs, ask about discounts for multiple sessions and group appointments. Read all refund and cancellation policies carefully; many personal trainers require payments upfront and clients may forfeit sessions for cancelling.

Visit bbb.org for up-to-date BBB Business Reviews on health clubs, personal trainers and more.

Last Minute Charitable Giving: Five Questions to Ask

The BBB recommends donors ask the following five questions before giving:

1) Is this a charity I can trust?

Look at the appeal carefully; some charities’ names sound the same. Do not be fooled by names that look impressive or that closely resemble the name of a well-known organization. A common scheme used in charity fraud is name-pirating of well-known organizations to gain the trust of donors. Check it out first. If someone says they are with a certain charity, call the charity directly and verify that who you spoke with or what you receive really is affiliated with them. Also, visit the BBB’s website www.bbb.org/charity to find out whether the charity meets the 20 BBB Standards for Charity Accountability. These standards address charity governance, finances, fund raising, donor privacy, and other accountability issues.

2) How will the charity use my donation?

Ask questions about how your donation will be used. Beware of appeals that bring tears to your eyes but tell you little about what the charity is doing about the problem it describes so well. For example, if the charity says it is helping the homeless, do they explain how and where this is taking place? (Shelter, food, medical care, etc.) Watch out for statements such as “all proceeds will go to the charity.” This can mean that only the money left after expenses, such as the cost of written materials and fund raising efforts, will go to the charity. These expenses can be high, so check carefully.

3) Is my donation tax deductible?

If you want to take a charitable deduction for federal income tax purposes, make sure the organization is tax exempt as a charity under section 501(c)(3) of the Internal Revenue Code. A charity appeal will usually include a reference to this. To verify a charity’s tax status, access an IRS database of organizations by viewing Publication 78 on the IRS website at www.irs.gov.

4) Can the charity actually use what I am donating?

All charities welcome the receipt of monetary donations, but some also solicit in-kind donations such as clothing, food, and toys. If you are planning to donate items to a worthy cause, make sure you know the in-kind contributions your charity prefers. For example, a food bank may prefer food items that are not perishable such as canned goods, and a toy drive may be seeking new and not used toys.

5) Am I feeling pressured to give?

Do not succumb to pressure to give money on the spot, either immediately over the phone via credit card or by allowing a “runner” to pick up a contribution. Also, never donate in cash. Always use a check or credit card to document the donation and to stop payment or dispute if you discover a problem. Take the time to research the charity fully; the charity that needs your money today will welcome it just as much tomorrow.