Showing posts with label Better Business Bureau. Show all posts
Showing posts with label Better Business Bureau. Show all posts

BBB Cautions: Refunds and Exchanges are a Privilege Not a Right for Consumers

What do you do if you receive a Christmas present that doesn’t fit? Or one that you don’t want? Returns and exchanges are common, but the BBB cautions consumers that these actions are privileges a business provides, and not a consumer’s right.
“If you find yourself with an unwanted gift, many stores will allow refunds or exchanges for the sake of good customer relations,” explains Steve J. Bernas, president and CEO of the Better Business Bureau serving Chicago and Northern Illinois.  “However, customers need to remember these actions are privileges stores may allow. They are not consumer rights.” 

Bernas urges that no matter whether the item was purchased in a brick-and-mortar store or online, it is wise look up and understand the return policies to avoid surprises and confusion. Here are several tips and hints to make the process easier for all involved.
  •    The most important first step is to determine where the item was purchased.  If you have a gift receipt, it makes the return situation much easier.  However, if you don’t have a receipt, you need to prove that the item was purchased at a given store.  Another more basic issue is the question of whether or not the store will take back the item for either a refund or exchange without proof of purchase.
  •   Refund and exchange policies differ. Each store, and in some cases different departments within stores, may have varying refund and exchange policies.  These can depend upon the product or usage.  Policies about returns and exchanges are usually available from the cashiers, stated on the sales slip, or available online. 
  • Expect to pay some fees.  Return shipping charges are common.  You may also be subject to restocking fees.  Again, it pays to know the store’s policy ahead of time.
  •  Time limits may apply.  Many times stores have a time limit on how long you can keep an item and still return it.  This is usually stated on the receipt or on the company’s website.
  •   Unsure, ask the gift giver. If you are not certain where the gift you want to return was purchased or if you don’t have a receipt, ask the gift giver where the item was purchased.  If that person has a receipt, perhaps they could exchange it for you.  If this isn’t possible for personal reasons, you unfortunately have a dilemma.  You can try to return it to the store where you believe the item was purchased.  However, they do not have to accept it back for either a refund or an exchange. 


“When questioning a return or exchange policy, look at the situation from the store’s perspective, Bernas noted. “How does that retailer know that the gift was purchased there?  What evidence do you have that you aren’t trying to cheat the store?” 

And Bernas noted that not all stores have liberal refund and exchange policies.  Many have strict requirements about what can be returned and the time frame of when it can be returned.  Also, some stores are charging a restocking fee even if you do have a receipt. 

“Companies with liberal return policies recognize the customer relations value of them,” he explained.  However, for them to continue these policies, it’s best not to abuse the privilege.  An example of abuse would be purchasing six or seven similar items to try on, recognizing that you will only be keeping one of them.  This type of product prospecting abuses the privilege the store offers to its customers with its exchange and refund policy.” 

Nominations Being Accepted for the BBB 2016 Torch Awards for Marketplace Ethics

Nominations are now being accepted to honor exceptional businesses with the Torch Awards from the Better Business Bureau serving Chicago and Northern Illinois.  These awards are presented annually to outstanding businesses in recognition of their commitment to high standards in relationships with their customers, employees, suppliers, competitors, and the surrounding communities.

Like the BBB Torch logo, the Torch Awards honor and help to illuminate the importance of a corporate conscience and the responsibility for creating a fair and honest marketplace.

The Torch Awards nomination process is open to all for-profit Chicago and northern Illinois based businesses. Nominations can come from individuals or businesses.

An individual may nominate the company he or she works for, owns or is affiliated with; as well as any company that individual does business with, or any company, which the nominating individual believes, meets the Torch Award criteria.  A company can also be nominated by an organization (i.e., Chamber of Commerce, academic institution, ethics organization, trade association, etc.).

Candidates for the 2016 Better Business Bureau’s Torch Award for Marketplace Ethics will be evaluated by a prestigious independent panel of judges from the business and academic communities against these criteria:

  • High ethical standards of behavior toward customers, suppliers, shareholders, employees, and communities.
  • Demonstrated ethical practices surrounding their buyer/seller relationships.
  • Marketing, advertising, communications, and sales practices which reflect a true representation of what is being offered in the market place.
  • Acknowledgment of ethical marketplace practices by industry peers and in the communities where they do business.
  • Management practices and policies that give long-term value to shareholders, customers, employees, and vendors.
  • Training programs that assist employees in executing ethics policies.

Companies are judged in five categories based on the following employee numbers: 1-9; 10-99; 100-999, 1,000-7,499 and 7,500+.  Recognition and awards ceremony will be held on Thursday, November, 19, 2015 – 11:00 a.m. at Loews Chicago O’Hare, 5300 North River Road, in Rosemont, IL.

To nominate a company, or for detailed information on judging criteria, go to www.bbb.org/chicago and click on the torch award link on the lower right side of the page. You may also e-mail Nina Castle at ncastle@chicago.bbb.org  or mail to BBB Torch Award, 330 N. Wabash Ave., #3120, Chicago, IL 60611.  Entries must be postmarked no later than Wednesday, September 30, 2015. Winners will be selected by October 16, 2015 and will be notified by phone following completion of judging.

The Better Business Bureau Offers Tips on Navigating Black Friday and Cyber Monday


Black Friday and Cyber Monday, the Friday and Monday after Thanksgiving, are the most popular holiday shopping days of the year.
Whether heading to the local malls or shopping online to avoid the large crowds, the Better Business Bureau serving Chicago and Northern Illinois (BBB) warns buyers to be aware of scammers and hackers.  

“People get caught up in the craze of holiday shopping,” said Steve J. Bernas, president & CEO of the Better Business Bureau serving Chicago and northern Illinois. “Whether it is Black Friday or Cyber Monday it is important to take precautions to ensure that scammers do not ruin the holidays.”

Tips for Black Friday shoppers:

  • Research before you shop - If you find a great coupon, be sure to print it and bring it to the store with you. Check out Business Reviews at www.bbb.org to make sure you are dealing with a reputable business that will guarantee the sale prices they claim to have.
     
  • Know Store Policies - Knowing the store policies on returns can help you determine where to buy. Many retailers may include restocking fees and shorter return deadlines.

  • Ask for Gift Receipts - Gift receipts generally include a description of the item purchased but do not disclose the price paid. Without proof-of-purchase, the recipient may be turned down for returning or exchanging the item, or risk receiving an exchange at a lower price.

Online shopping tips for Cyber Monday:

·         Shop on trustworthy websites – Shoppers should start with the BBB to check on the seller’s Business Review for customer satisfaction at www.bbb.org  Always look for the BBB seal and other widely-recognized “trustmarks” on retailer websites and click on the seals to confirm that they are valid.
 
·         Protect your personal information – Take time to read the site’s privacy policy and understand what personal information is being requested and how it will be used. If there isn’t one posted, it should be taken as a red flag that personal information may be sold to others without permission.

·         Beware of deals that sound too good to be true – Offers on websites and in unsolicited e-mails can often sound too good to be true, especially extreme low prices on hard-to-get items. Consumers should always go with their instincts and not be afraid to pass up a “deal” that might cost them dearly in the end. If it sounds too good to be true, it probably is.

·         Confirm that your online purchase is secure – Shoppers should always look in the address box for the “s” in https:// and in the lower-right corner for the “lock” symbol before paying. If there are any doubts about a site, the BBB recommends right-clicking anywhere on the page and select “Properties.” This will let you see the real URL (website address) and the dialog box will reveal whether the site is not encrypted.

·         Pay with a credit card – It’s best to use a credit card, because under Federal law, the shopper can dispute the charges if he or she doesn’t receive the item. Shoppers also have dispute rights if there are unauthorized charges on their credit card, and many card issuers have “zero liability” policies under which the card holder pays nothing if someone steals the credit card number and uses it.

·         Keep documentation of your order - After completing the online order process, there may be a final confirmation page or the shopper might receive confirmation by e-mail. The BBB recommends saving a copy of the Web page and any e-mails for future reference and as a record of the purchase.

Don’t forget those less fortunate this holiday season. If deciding to donate an item to a charity or cause, make sure items are in good condition and the recipient organization accepts such items to help further its cause. Find all charities that meet BBB standards at www.bbb.org/charity

For more advice on staying safe online this holiday season, visit www.bbb.org


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Play Safe Buying Bears/Packers Championship Tickets

The Better Business Bureau serving Chicago and Northern Illinois alerts fans purchasing tickets to the upcoming Chicago Bears-Green Bay Packers NFC championship game on Sunday to be cautious when buying tickets online.

According to StubHub.com the secondary–ticket market is a $10 billion dollar a year industry which includes professional brokers, speculators and season ticket holders. Because many of these sellers are not licensed or bonded and are often found on unregulated online auctions, online classifieds, and bulletin boards using person to person sales sports fans need to be more skeptical and on the alert.

“Chicago Bears fans need to do their research before spending large amounts of money on NFC Championship tickets,” said Steve J. Bernas, president & CEO of the Better Business Bureau serving Chicago and Northern Illinois. “Sports fans are often blinded by their devotion to their team and run the risk of putting their trust in a seller that doesn’t deserve it.”

In the past twelve months alone, there have been 171 complaints filed and more than 20,000 inquiries to the BBB about companies in the “Ticket Sales – Events” category.

If you are considering buying tickets on the secondary market, the Better Business Bureau offers the following tips to ensure a successful transaction:

·         Check to make sure the broker is licensed as required in the state of Illinois.
·         Avoid paying cash for tickets in person from a stranger in case the tickets
may be counterfeit.
·         Do not ever wire funds for payment.
·         Deal only with brokers that provide clear details concerning the terms of the transaction.  For instance, you should know up-front the amount of the surcharge for each purchase; whether the tickets are guaranteed; how they will be sent to you and the timeframe for delivery; and the broker’s refund, rescheduling and cancellation policies. 
·         Check if the ticket broker is a member of the National Association of Ticket Brokers (NATB) and the Better Business Bureau.
·         Visit several Web sites to compare prices and ticket availability for the event you’re interested in attending. 
·         Do not buy tickets from Internet sites that are not secure or lack a privacy policy; fail to disclose their refund, rescheduling and cancellation policies; do not provide a telephone number and fixed place of business; or insist on cash payment.
·         Verify the location of the seats on a seating chart provided by the venue to avoid purchasing non-existent seats or seats with obstructed views.
·         Pay with a credit card or another secure form of payment so you can dispute the charge with your credit card issuer or bank.

“The most common way sports fans are getting scammed online is by either paying for counterfeit tickets or tickets that never arrive,” added Bernas. “Even if the tickets do surface, they are sometimes not for the seats the seller advertised – which can mean being stuck with seats that aren’t next to each other, up in the nosebleed section, or with an obstructed view.” 

For more information on finding ticket brokers you can trust, visit www.bbb.org

Top 10 Scams of 2010

Scammers in 2010 continued to prey on people's difficult economic conditions and concerns about the general economy as well as follow the financial misfortunes of individuals, according to the Better Business Bureau's (BBB) summary of dishonest business dealings for the past year.

This listing is based on the number of times people requested information and inquiries through personal phone calls or the BBB website, as well as complaints.  These instances of service by the Better Business Bureau serving Chicago and Northern Illinois, including inquiries and complaints about specific businesses.

"Scammers continue to follow the money trail and target the desperate emotions of people," said Steve J. Bernas, president and CEO of the Better Business Bureau serving Chicago and Northern Illinois. "This year the Top 3 scams were again related to personal finances.”
  
The list of the Top 10 most common scams in 2010 include:

1.      Work-At-Home and Fraudulent Employment Opportunities
2.      Credit Repair and Debt Negotiations/Settlement Services
3.      Advance Fee Lenders
4.      Mortgage Foreclosure Rescue/Loan Modification Scams
5.      Timeshare Resellers
6.      Mystery/Secret Shoppers
7.      Grant & Government Job Finding Entities
8.      Not so “Free” Trials
9.      Phishing, Smishing, and Vishing
10.  Check Scams

"We believe the reason we hear more about these Top 3 scams is because people lose money and then complain, rather than being tempted by deals and checking them out before sending money," explained Bernas. "This usually ends badly for people, who never get their money back."

Explanations of these scams are:

1. Work-at-Home and Fraudulent Employment Opportunities - These scams offer big dollars for little work or effort. However, when an interested consumer “applies,” they almost always ask for money up-front to pay for materials, training kits, or investment money. After sending payment, most consumers either have their checks deposited and never hear anything again, or obtain something that is completely useless. Internet employment opportunities looking for “shipping”, “billing managers” or “payment processors” frequently turn out to be fraudulent listings that are looking for victims to commit money laundering by accepting and forwarding payments.

2. Credit Repair and Debt Negotiation/Settlement Services - Due to the continuing economic situation, many consumers seek credit repair or debt negotiation/settlement companies. However, everything a credit repair clinic can do for you legally, you can do for yourself at little or no cost. Here are the important facts:
  • These services can not ask for money in advance, automatically get legitimate negative reports off your credit report or guarantee to cut your debt by a specific percentage.
  • Be extremely cautious about a service that recommends you not pay creditors so it can negotiate.  This could negatively affect your credit report.

3. Advance Fee Lenders - The victims are often contacted by phone or e-mail or respond to fake newspaper or online ads. They are offered quick and immediate loans despite past credit history and with little or no background check. The one requirement is the payment of advance fees. It is illegal for any business to request any fees to be paid up front prior to disbursing a loan. After the victim wires the money, he never sees his loan funds or advance fee payment again.

4. Mortgage Foreclosure Rescue/Loan Modification Scams – Because foreclosure information is publicly available, many scammer contact desperate homeowners and promise to save their homes while loan modification companies promise to renegotiate your loan and reduce your payments. It is unlawful for foreclosure consultants to collect money before (1) they give you a written contract describing the services they promise to provide and (2) they actually perform all the services described in the contract.

5. Timeshare Resellers – Consumers are generally contacted by phone or mail and told that their timeshare is in a “hot” market or they have a buyer willing to purchase their timeshare, but first they need to pay a hefty fee in advance or enter into contracts that same day. In a standard real estate transaction, fees are paid from the proceeds of the sale. In a timeshare scam, victims do not end up selling their timeshare and they generally do not hear from the company again.

6. Mystery/Secret Shoppers - Websites or newspaper ads often asks that you “register” and pay a fee in order to receive information about a certification program, a directory of mystery shopping companies, or baseless guarantees of obtaining mystery shopping positions. Most don’t exist, have already expired, or have nothing to do with legitimate secret shopping offers.

7. Grant & Government Job Finding Entities - Offers of “free” government grants or assistance with research, grant applications, or government employment should all be regarded with caution. The majority of these entities charge for services, applications, or information that can be easily obtained for free by doing online searches or visiting school financial aid offices.

8. Not so “Free” Trials – Online offers often do not disclose the billing terms and conditions or do not have such details prominently displayed online. Consumers often end up being repeatedly billed for products and services they didn’t want.

9. Phishing, Smishing, and Vishing – “Phishing” is a crime that uses spam e-mails to deceive consumers into disclosing their personal or financial information.

”Smishing” is the practice of sending a phishing message to steal credit card or identity information via cell phone text messaging.

The latest form of identity theft is “vishing” which uses Voice over Internet Protocol (VoIP) to gain access to private and personal financial information. Recipients hear automated recordings that alert them to fraudulent or suspicious activity on their credit card or bank accounts which instructs them to call and input their personal information.

10. Check Scams – Consumers receive a check in the mail, allegedly for winning a sweepstake, lottery or promotion. They are urged to deposit the check, and then write another from their own account to cover alleged taxes or fees. The check that was deposited turns out to be worthless while the check sent by the consumer is good, and that money ends up being unrecoverable.

“Remember, before giving any company credit or debit card information, the BBB recommends reviewing the website fully to avoid potential billing nightmares,” said Bernas. “These scams and others are preventable with the right resources.”  

For more information on these top 10 scams, visit www.bbb.org .
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Check the Privacy Policy on ‘Dear Santa’ Websites

The Better Business Bureau serving Chicago and Northern Illinois discovered almost 7,000 domain names are registered that include  the name Santa Claus, offering children a wide range of opportunities to persuade St. Nick via email that they were nice in 2010.  Before allowing children to share any personal information with a “Letter to Santa” website, the BBB Children’s Advertising Review Unit (CARU) recommends adults carefully review such sites to determine who is seeking the information, how it will be used and whether it will be shared with third parties.

All websites directed to children – or websites designed with a special children’s section –  should have a privacy policy that explains the site’s information collection practices. The privacy policy should include the name of the company and the company’s complete contact information.

“Even Santa is required to comply with CARU’s Online Privacy Protection guidelines and the Federal Children’s Online Privacy Protection Act,” said Steve J. Bernas, president & CEO of the Better Business Bureau serving Chicago and northern Illinois. "Even though some parents may be intimidated by technology, they need to supervise their child's computer use in the house as well as educate their kids on how to be safe online."

Websites should also state whether the company shares information with third parties, including advertisers, and whether the company publically discloses the information or retains the information for any future purpose.

CARU offered the following ‘Dear Santa’ site review tips:

  • Keep Shared Information Limited. Websites directed to children should not ask a child to disclose more information than is reasonably necessary to participate in the activity – a first name and email address, for instance. Limit the personal information children share with Santa and omit physical addresses; Santa already knows where all the children live.

  • Age Appropriate Content. Check websites for unwelcome content. Some sites are geared toward adults and may contain language or advertising adults may not want children to see.

  • Avoid Off-topic Hyperlinks. Since hyperlinks can allow children to move seamlessly from one site to another, investigate the hyperlinks to assure children don’t access inappropriate content.

·         Keep the Channels of Communication Open. Let your kids know that you are always ready to talk if they are ever threatened, bullied or feel uncomfortable about an experience they had online.

“As many children are online and have numerous opportunities to link up with websites requesting personal information it is critical that parents take the time to protect personal information while staying in the holiday spirit,” added Bernas.  

Federal law requires sites collecting identifying information from children under 13 to get a parent's consent first. Parents who are concerned about the safety of specific child-directed websites and advertising can file a complaint at www.caru.org/complaint

For more information on how to keep your kids safe online, please visit www.CARU.org.

Parents can also learn how to keep themselves safe from ID thieves and hackers online at www.bbb.org

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Four Steps to Create and Keep a Holiday Budget

Unless you’re among a select group of people, sitting down and creating a budget does not sound like very much holiday fun. Nevertheless, in tough economic times, the Better Business Bureau recommends mapping out your spending in November to help ease the strain of a financial holiday hangover in January.

According to a survey by Consumer Reports, shoppers planned on spending about $699 over the holidays last year, but, in a follow-up survey, admitted to actually spending closer to an average of $811, 16 percent more than planned. Creating a budget, and being disciplined enough to follow it, is one of the best ways to avoid overspending during the holidays. 

“While sitting yourself down and crunching numbers isn’t the most festive way to spend an evening, because of the current economic climate many can’t afford to spend with abandon,” said Steve J. Bernas, president & CEO of the Better Business Bureau serving Chicago and northern Illinois. “Building a budget and sticking to it over the holidays will stave off a painful financial burden.”

The following are four steps recommended by the BBB to consider when creating a budget this holiday season:

Step One: Consider your Income.
The first step is to measure how much money is coming in.  Add up your monthly salary along with your spouse’s and any child support payments, dividends or interest payments and other sources of income.

Step Two: Add Up Regular Monthly Expenses.
Adding up expenses is usually harder than determining your income because there are so many more factors to consider. Start with your rent or mortgage, utilities and credit card payments. Also factor in other expenses for gas and car maintenance, healthcare and groceries. A full list of monthly expenses to consider is available at www.bbb.org  

Step Three: Estimate Extra Holiday Expenses.
A lot of little purchases have a way of adding up over the holidays and it’s important to consider all of the expenses of the season including:

  • Gifts - Make an itemized list of everyone you want to buy presents for and estimate how much you’re willing to spend for each. This includes presents for family, friends and coworkers. Also consider the cost for holiday cards and postage.

  • Entertaining - Entertaining is big over the holidays. Think about who you’ll be having over and also budget for any food or beverages you might need to bring to someone else’s party. Also consider the costs for eating out and going to the movies—both popular expenses over the holidays.

  • Decorations - Take stock of what you already own and then consider any additional spending you might need to make for a tree, lights, ornaments, wrapping paper, etc.

  • Travel - If you’re heading out of town for the holidays, consider the cost of travel including any car maintenance or pet boarding if applicable.

  • Charitable Donations – Remember the holidays are a time of giving, so budget in how much you plan on donating to a worthy cause. You can learn more about being a savvy donor from the BBB Wise Giving Alliance at www.bbb.org/charity

Step Four: Revisit, Evaluate and Revise Your Budget Along the Way.
Once you’ve added up your income and your expenses, it’s time to compare. If more is going out than coming in, it’s time to go back over your budget and pare down expenses. Consider giving fewer gifts or less expensive ways of entertaining. Last year’s decorations are also probably just fine.

Once you’ve balanced your budget, revisit it frequently over the holidays to make sure you’re sticking to it. You might find that you overestimated in some categories and underestimated in others.

For more advice on saving money over the holidays, visit www.bbb.org

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Black Friday and Cyber Monday Tips for Safe Shopping

Black Friday and Cyber Monday, the Friday and Monday after Thanksgiving, have become the most popular holiday shopping days of the year. Whether shopping at a brick and mortar store or online to avoid the crowds, buyers should be alert for scammers and hackers.

Before leaving home to snag great holiday deals on Black Friday, the Better Business Bureau recommends shoppers look both online and in the newspaper for the best sale prices. It’s vital for consumers to not only research what stores have the best deals but also to find out if these retailers are reputable. Go to www.bbb.org to obtain free Business Reviews on any store you are planning to shop at this holiday season. The BBB also recommends shoppers bring the ads to the store on Black Friday and to also become familiar with the store’s return policies.

 “Finding exceptional bargains and deals drives many consumers to stores and online retailers after the Thanksgiving holiday—however, both have their own set of risks,” said Steve J. Bernas, president & CEO of the Better Business Bureau serving Chicago and Northern Illinois. “Taking steps to avoid the fraud in both situations will result in a much happier holiday experience for everyone—except, of course, for scammers and hackers.”

Following are the top 10 online shopping tips for holiday shoppers to help fight deceitful online retailers, scammers and hackers on Cyber Monday and the rest of the season:

1. Protect your computer – A computer should always have the most recent updates installed for spam filters, anti-virus and anti-spyware software and a secure firewall.

2. Shop on trustworthy websites – Shoppers should start with the BBB to check on the seller’s reputation and record for customer satisfaction at www.bbb.org  Always look for the BBB seal and other widely-recognized “trustmarks” on retailer websites and click on the seals to confirm that they are valid.

3. Protect your personal information – The BBB recommends taking the time to read the site’s privacy policy and understand what personal information is being requested and how it will be used. If there isn’t one posted, it should be taken as a red flag that personal information may be sold to others without permission.

4. Beware of deals that sound too good to be true – Offers on websites and in unsolicited e-mails can often sound too good to be true, especially extremely low prices on hard-to-get items. Consumers should always go with their instincts and not be afraid to pass up a “deal” that might cost them dearly in the end, and look up the company at www.bbb.org

5. 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. If a consumer receives such an e-mail, the BBB recommends picking up the phone and calling the contact number on the website where the purchase was made to confirm that there really is a problem with the transaction.

6. Confirm your online purchase is secure – Shoppers should always look in the address box for the “s” in https:// and in the lower-right corner for the “lock” symbol before paying. If there are any doubts about a site, the BBB recommends right-clicking anywhere on the page and select “Properties.” This will let you see the real URL (website address) and the dialog box will reveal if the site is not encrypted.

7. Pay with a credit card – It’s best to use a credit card, because under federal law, the shopper can dispute the charges if he or she doesn’t receive the item. Shoppers also have dispute rights if there are unauthorized charges on their credit card, and many card issuers have “zero liability” policies under which the card holder pays nothing if someone steals the credit card number and uses it. Never wire money and shop locally.

8. Keep documentation of your order - After completing the online order process, there may be a final confirmation page or the shopper might receive confirmation by e-mail. The BBB recommends saving a copy of the Web page and any e-mails for future reference and as a record of the purchase.

9.
Check your credit card statements often – Don’t wait for paper statements; the BBB recommends consumers check their credit card statements for suspicious activity by either calling credit card companies or by checking statements online regularly.

10. 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, the shopper can cancel and demand a refund. There is no general three-day cancellation right, but consumers do have the right to reject merchandise if it’s defective or was misrepresented. Otherwise, it’s the company’s policies that determine if the shopper can cancel the purchase and receive a refund or credit.

For more advice on staying safe online this holiday season visit www.bbb.org
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Five Ways to Fight Back Against Phone Bill Cramming

Sneaky little charges are making their way onto telephone bills and can go unnoticed for months.  Victims of so-called “cramming” often face a tough battle to stop being billed every month and start getting their money back.  In order to fight cramming, the Better Business Bureau recommends keeping a close eye on every bill and being extremely cautious when giving out personal information such as phone numbers.

Cramming is defined as the addition of charges to a subscriber's telephone bill for services which were neither ordered nor desired by the client, or for fees for calls or services that were not properly disclosed to the consumer. These charges are often assessed by third-party suppliers of data and communication service that phone companies are required, by law, to allow the third-party to place on the bill.

“You might think that nothing bad can happen from giving out your telephone number, but you should guard those digits like you would a credit card or social security number,” said Steve J. Bernas, president & CEO of the Better Business Bureau serving Chicago and Northern Illinois. “Monitor your monthly statements closely because even if you are very protective of your personal information, cramming can still strike.”

Cramming can come from any number of sources. Some victims may have inadvertently signed up for a subscription service – such as for “free” ringtones or a daily joke or horoscopes – not realizing they’d be billed every month. Calling a psychic hotline or entering a sweepstakes can also lead to cramming. Unfortunately, in some cases, the victim may just be an unlucky, random target.

The BBB recommends taking the following five steps to fight cramming:

  • Keep a close eye on monthly statements. Anyone can become a victim of cramming so monitoring you monthly bills is extremely important. The sooner you spot the charges, the sooner you can fight them. 

  • Know your rights. Contact your telephone provider to see if you can completely restrict third-party billing on your account.

  • Know whom you can trust online.  Before sharing any personal information online, always research the business with your BBB at www.bbb.org

  • Guard your personal information closely. Be wary when asked to provide personal information to sign up for a free trial or enter a sweepstakes. Always read the fine print on any offer so you understand how your personal information may be used.

  • Know where to complain. If you are unable to resolve the issue either through your telephone provider or directly with the business, file a complaint with the FCC for charges related to telephone service and FTC for all other cramming charges on your phone bill. You can also file a complaint with BBB at www.bbb.org

For more advice on managing personal finances and protecting your wallet, visit www.bbb.org.
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Holiday Scams - Tis the Season

The holidays are a happy time for food, family, and friendship, but they are also a time for fraud. Consumers can fall into any number of traps over the holiday season and become victim to identity thieves, hackers or deceptive merchants online. The Better Business Bureau (BBB) is warning holiday shoppers and donors to look out for five common scams this season.

“While the rest of us are pulling the decorations out of the attic, scammers are blowing the dust off of their tried and true holiday scams,” said Steve J. Bernas, president & CEO of the Better Business Bureau serving Chicago and Northern Illinois. “We can all help make these holiday scams a ghost of Christmas’ past by not falling for them anymore.”

The BBB recommends being on the lookout for the following scams this holiday season:


Scam Shopping Sites Online: 
We’re all looking for a great deal online, but some sites offer electronics or luxury goods at prices that are too good to be true. Every holiday season the BBB hears from holiday shoppers who paid for a supposedly great deal online, but received nothing in return.

BBB Advice: Always look for the BBB seal when shopping online and click on the seal to confirm it is legitimate. When shopping on sites that you aren’t household names, check the business out with the BBB before you buy at www.bbb.org  

Finding the Season’s Hottest Toys and Gadgets Online:
Every year, holiday shoppers fight over the “must have” toy or gadget of the season. When the item is sold out in stores, you can often find it online through various sites for a much steeper price; some sellers, however, may take your money and run.

BBB Advice: Shop locally and conduct the transaction in person; never wire money as payment. When purchasing items on online auctions, research the seller extensively and always listen to your doubts if the deal doesn’t sound legitimate.

Identity Theft at the Mall:
While you’re struggling at the mall with bags of presents, identity thieves see an opportunity to steal your wallet and debit or credit card numbers.

BBB Advice: Don’t let yourself get bogged down in purchases and lose track of your wallet. Know where your credit and debit cards are at all times and cover the keypad when entering your pin number while purchasing items or getting money from the ATM.

Bogus Charitable Pleas:
The holidays are a time of giving which creates a great opportunity for scammers to solicit donations to line their own pockets. Also beware of solicitations from charities that don’t necessarily deliver on their promises or are ill-equipped to carry through on their plans.

BBB Advice: Always research a charity with the BBB before you give to see if the charity meets the 20 Standards for Charity Accountability at www.bbb.org/charity

Phishing E-mails:
Phishing e-mails are a common way for hackers to get at your personal information or break into your computer. Common phishing e-mails around the holidays include e-cards and messages pretending to be from companies like UPS or FedEx with links to package tracking information.

BBB Advice: Don’t click on any links or open any attachments to e-mails until you have confirmed that they are not malicious. E-mail addresses that don’t match up, typos and grammatical mistakes are common red flags of a malicious phishing e-mail. Also beware of unsolicited e-mails from companies with which you have no association.  Make sure you have current antivirus software and that all security patches have been installed on the computer.

For more advice on being a savvy consumer this holiday season, visit www.bbb.org 
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