Take care and beware, Northern Nevadans.
There are increasing numbers of unscrupulous people out there eager to swindle you out of your homes, paychecks and life savings.
Perfecting and refining age-old techniques of deception and taking advantage of Nevadans' increasing use of the Internet, fraudsters are coming out in great force to fleece the unsuspecting and the innocent, reports Tim Johnston, executive director of the Better Business Bureau (BBB) of Northern Nevada and the Lake Tahoe Basin.
"Caveat emptor... let the buyer beware," is the guiding principle of these predators who dupe their prey in a wide variety of schemes that include fraudulent contracts involving home mortgages, automobile sales, home improvement and repair, pay-day loans, and credit card and debt counseling service scams, says Johnston.
"Our office, for example, has been assisting two Carson City women who have complained they were duped into signing contracts they believe were either misleading or dishonest," he said.
One of the women, who purchased a $1,500 dehumidifier, told the BBB that the company she bought it from informed her the machine was a legitimate medical expense and she would be reimbursed by Medicare, Johnston said.
"But when she discovered that Medicare would not reimburse the expense and she had to pay the entire amount herself, she tried to return the product to the seller and get her money back under terms of the sales contract which contains a recision or cancellation provision. The people who sold her the dehumidifier won't honor the return policy, and we are helping her in attempting to get her money back," Johnston said.
The other case involves a Carson woman who paid $650 for astrological supplies and books to a firm that advertised on the Internet it is located in Sparks. The woman charged the materials she received were worthless and demanded her money back. We discovered the company was located overseas and not in Sparks, and we're helping her too," Johnston said.
The BBB also receives complaints from individuals who have purchased products on the Internet only to learn later that they have been billed for additional, unwanted services such as expensive club memberships and weight reduction programs, he added.
The proliferation of pay-day loan companies also has resulted in escalating complaints from Nevadans who allege they have been hit with exorbitant interest rates and hidden costs, Johnston said.
Some of these companies, which operate out of offices in communities across the state as well as on the Internet, charge interest rates that can reach 400 percent, and their cash-desperate customers who are unable to obtain loans from banks and savings institutions soon find themselves on "downward spirals" from which it is nearly impossible to escape, he said.
"The BBB counsels people not to use pay-day loan services. Instead, they should attempt to get loans from credit unions, non-profit organizations, their families or through credit card cash advances.
"Many of the pay-day loan firms advertising on the Internet are actually based in Canada, Russia and other countries in Europe. Once a person signs up with these people overseas, their complaints are difficult to pursue even if they have merit," Johnston warned.
Johnston also cautions people to be wary of Internet advertisements that promise home foreclosure rescue, debt assistance, mortgage modification and other forms of financial support.
"We urge everyone to walk away from companies that demand money up front before they provide this assistance, and we urge Nevadans to be wary of firms that advertise financial assistance on the Internet and don't list their physical office address and telephone number. And be very cautious of companies that are located overseas. It is almost impossible to prosecute them," Johnston said.
Johnston also alerts Nevadans to the growing menace of phony charities. These, he charged, are counterfeit organizations run by cruel hoaxers who steal the funds sent in by well-meaning citizens who believe their donations will be forwarded by legitimate charities to those afflicted by the Gulf oil spill, the earthquake in Haiti and other disasters.
There are really no new scams today, said Johnston.
What the BBB is discovering is that the historical practices of deception and guile to separate people from their money have become more sophisticated and polished. And the Internet, which is expected to register a four-fold increase in usage by 2014, is a new and effective tool in the arsenal of those who cheat and lie, he believes.
Johnston can be contacted at 775-322-0657, toll-free 888-350-4222 or at the BBB's Reno office, 991 Bible Way.