Advance Fee Scams

Advance Fee Scams

Be wary of ads promising guaranteed jobs, guaranteed loans, credit
repair, debt consolidation or similar claims. Many of these are
only a way to get you to send money in exchange for little or no
service.

o Be cautious when responding to advertisements which use 900
telephone numbers. You can be charged substantial and differing
amounts for calls to 900 numbers.

o Be careful with your personal information, including Social
Security Numbers, credit card numbers and bank account numbers,
among others. Fraudulent businesses could use this information to
make an unauthorized charge to your credit card or to withdraw
money from your bank account.

o Before you make any payment, ask the business to send you a
contract and other information stating the terms of the service and
whether you can cancel the service and get a refund.

o Ask how long the firm has been in business and if it is
licensed properly. Request that the company send you copies of its
business or other licenses. Review all contracts carefully. o
Contact your state or local consumer protection agency and the
Better Business Bureau to find out a company's complaint record.
o Some states have enacted laws banning or regulating these types
of businesses. To find out the law in your state or to report a
fraud, contact your state or local consumer protection agency.

o For information on the dangers of these types of scams, call the
non-profit National Fraud Hotline at 1 (800) 876-7060 (toll free).

Special Contracts

Health Clubs

When you are considering whether to join a health club, be
cautious of:

o joining clubs that have not opened - they might never open; o
low-cost "bait" ads - many "switch" you to expensive long-term
contracts;

o promises that you can cancel anytime and stop paying - check the
written contract for the terms of membership and any other
promises;

o the fine print - many low-cost ads and contracts severely
restrict hours of use and services;

o signing long-term contracts - consumer protection agencies
report that many consumers quit using the club within a few months;


o automatic monthly billing to your charge card or debit from a
checking account - these are easier to start than to stop; and o
unbelievably low one-time fees with no monthly dues.

Before you sign, be sure to:

o check with your doctor before you begin an exercise program;
o visit the club at the hours you will be using it;

o check to see that promised equipment/services are actually
available;

o talk to current members regarding their satisfaction with the
club;

o check out several clubs before you sign a contract;

o consider your commitment to a long-term program - good
intentions seem to fade as the reality of the hard work sets in;
o read the contract carefully before you sign; is interest charged
for a payment plan? Are all promises in writing?; and o check
with your local or state consumer agency or Better Business Bureau
for any laws in your state, cancellation rights or complaints
against the company.