Home

For more information contact:
Heather Clary
Director of Communications
(859) 259-1008
heatherbbb@lexbbb.com

8/4/2009

Lexington, KY - Topics currently hitting the BBB of Central & Eastern Kentucky phone lines and e-mail box:

Phony "Pay Day" Loan Debt Collectors
BBBs nationwide are warning of phony debt collectors that are calling consumers nationwide and claiming that they have defaulted on a payday loan and will be arrested if they don’t pay immediately. Names used include the “Financial Accountability Association” or the “Federal Legislation of Unsecured Loans.” The callers are equipped with a lot of personal information about their potential victims, which could indicate a data breach somewhere. Don't fall for these calls. Legitimate debt collectors will first notify you in writing of the debt, as required by federal law. If you are concerned about identity theft, check your credit report for free at www.annualcreditreport.com to look for unauthorized accounts, and for information on placing fraud alerts on your credit reports.

Door-to-Door Contractors
Reports continue from central Kentucky homeowners being visited by traveling workers offering various home improvement work at low prices, especially driveway paving or seal coating. Homeowners who said "yes" to these unsolicited offers have reported paying a lot of money for shoddy or unfinished work, and inability to contact the worker for recourse. Carefully check out contractors with your BBB before hiring; ask for the complete name, address and phone number of business and proof of workers comp and liability insurance. Never pay entire amount up front, and get a written contract.

"AB Force" Refunds
Your BBB is getting phone calls and emails from consumers who have received a check in the mail in the amount of about $17.00 regarding the "FTC vs. Telebrands" redress settlement. They wonder if it's real. It is legitimate. The Federal Trade Commission (FTC) announced a settlement with Telebrands last January over alleged deceptive claims of weight loss if consumers purchased the "Ab Force" belt and accessories and used them to apply electronic stimulation to their abdomens. (FTC News release can be found at http://www.ftc.gov/opa/2009/01/telebrands.shtm.)

Credit Card Interest Rate "Robo-calls"
Consumers continue to complain of unsolicited calls offering to "lower your credit card interest rate." The parties calling typically won't answer the consumer's questions as to who they are and where they are. They demand the consumers' credit card information so they can get their interest rates lowered. What these callers are NOT saying is that your credit card providers do not have to work with them; and you could ask your credit card company to lower your rates on your own. Your BBB advises you not to say yes to such a call without getting the company's name, address and phone number; checking out their report with the BBB; and verifying if they are registered with the Kentucky Attorney General's office as a debt settlement/negotiation company as required by Kentucky law. Many people complain they are on the "do not call" list" and get these calls. If you have the phone number of the business calling in violation of the law, file a complaint with the FTC at www.donotcall.gov.

****

Contact the Better Business Bureau of Central & Eastern Kentucky to check out companies, charities, or to report problems and scams by calling (859) 259-1008 or toll-free 1-800-866-6668 or by logging on to www.bluegrass.bbb.org.