Home

12/26/2008

by Edward Johnson

Washington, DC – The celebration is over and the confetti has been cleared. It is time to make good on those resolutions you made to bring in the New Year. Chances are your resolve is to eat better, exercise more, lose weight and cut back on unhealthy habits. Chances are that some of your new resolutions are the same old ones from last year. Indeed, promises are little more than wishful thinking if you do not act on your good intentions.

Whatever your personal goals are for the New Year, the Better Business Bureau (BBB) encourages you to add one more resolution to your list: Be a better consumer. In light of the tough economic times we are in, it is all the more important that consumers seek ways to eliminate risk in their life and make sound buying decisions. In doing so, be alert to scam artists. They will try to tap into your desire to improve your lot in life. The BBB anticipates an increase in fraudulent loan offers, work-at-home promotions, ‘miracle’ weight loss schemes, false lottery notices and other tempting solicitations.

One of the most important New Year’s Resolutions consumers can make would be to contact the BBB before responding to any enticing, too-good-to-be-true promotion and before making a major purchasing or investment decision. The BBB system serves markets throughout the United States, Puerto Rico and Canada, and is the marketplace leader in advancing trust between businesses and consumers. The web site (www.mybbb.org) offers a world of information. You can obtain objective reports on more than two million businesses, consumer scam alerts, complaint filing services and tips on a wide variety of topics that help consumers make wise purchasing decisions.

In addition to checking with the BBB, consumers are advised to keep the following NEW YEAR resolutions in mind for 2009:
• Never succumb to the hard sell, “one day only” offer. Resolve to avoid sales or investment pitches demanding you “act now” or lose the opportunity forever – think things through, talk to family and friends, and check with the BBB for information.
• Everything should be in writing. Always make sure contract provisions match what the salesperson or advertisement said. Before you sign, read and understand every provision in the contract.
• With a plan, comes action. If your household operates without a budget, you may be just one paycheck away from a financial crisis. Resolve to establish and adhere to a budget that provides the means to deal with unexpected expenses, while enabling you to decrease debt and increase savings.
• You haven’t won anything! Sweepstakes and lottery scams abound. Resolve to never send money to collect prizes – legitimate sweepstakes and lotteries do not require winners to pay money to claim awards. Be leery if you receive a check, are told to deposit the “winnings” and instructed to forward money to pay taxes, or other fees. It’s pie in the sky, don’t bite.
• Easy money is never easy. Resolve to resist work-at-home promotions from unknown companies promising big bucks. Be similarly suspicious of ads from lenders “guaranteeing” a loan regardless of your income, credit history or financial situation. Advance fee loan and work-at-home offers invariably ask for money “up front” and deliver little, if any, value in return.
• Always deal with reliable merchants. Resolve to always ensure a business has a permanent address and phone number, check customer references and contact the BBB about the company’s marketplace record.
• Resolve to safeguard your personal information. Don’t give out your credit card, bank account, driver’s license or Social Security numbers to anyone you don’t know, no matter how tempting the offer.

Edward Johnson is president & CEO of the Better Business Bureau serving the metro Washington, D.C. region.