BBB Military Line, the
military arm of the Better Business Bureau, provides free resources, such as
financial literacy information, access to BBB services and scam alerts, and
complaint and dispute resolution for all branches of the U.S. military. BBB
warns of the following scams that are directed at service members:
-
High priced military loans
-- Advertisements for loans that promise a guarantee, instant approval or no
credit check will often come with hidden fees and extremely high interest
rates. Remember that legitimate lenders will never guarantee a loan before
you apply, and loans that require an upfront fee are likely a scam.
-
Veterans' benefits buyout
plans -- Buyout plans will offer a cash payment in exchange for a
disabled veteran's future benefits or pension payments. The cash amount is
only about 30-40 percent of what the veteran is entitled to. These buyout
plans can be structured in several different ways, so research thoroughly
before signing anything over.
-
Fake rental properties --
Stolen photos of legitimate rental properties are used in advertisements
that promise military discounts and other incentives. Service members will
have to pay a fee via wire transfer for security payments or a key to the
property -- and in the end they will receive nothing.
-
Phony jury duty summons --
A caller clams to work for the local court system and states that the
service member did not show up for jury duty and there is now a warrant out
for their arrest. When the victim says they never got a summons, the caller
will ask for a credit card number or Social Security number to clear up the
matter.
-
Misleading car sales --
Websites posting classified ads will offer false discounts for military
personnel or claim to be from soldiers who need to sell their vehicle fast
since they have been deployed. Upfront fees will be required via wire
transfer, or the vehicle will have problems after purchase.
-
Expensive life insurance policies -- Members of
the military are often the targets of high-pressured sales pitches that
offer unnecessary, expensive life insurance policies. Solicitors may make
false statements regarding the benefits that these policies offer.
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BBB recommends the following tips to avoid scams:
___
For 100 years, the Better Business Bureau has been helping
consumers find businesses, brands and charities they can trust. In
2012, consumers turned to BBB more than 100 million times for
reviews on more than 4 million companies and reports on 11,000
charities, all available for free at
www.bbb.org. The Council of Better Business Bureaus is the
umbrella organization for 114 local, independent BBBs across the
United States and Canada, as well as home to its national programs
on dispute resolution and industry self-regulation.
[Text from file received from the
Better Business Bureau of
Central Illinois]
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