BBB: Beware Claims of 'Free' Help Getting Stimulus Grants
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Dozens of Web sites claim that, because of the recently passed stimulus package and other actions taken by President Obama, consumers can easily get government grants to pay bills or get out of debt. Contrary to such claims, the federal government does not award grants to help consumers pay general debt and complaints to BBB show that people who sought free advice were ultimately charged as much as $69.95 every month on their credit or debit card.
Immediately following the approval of the $787 billion stimulus package, Web searches for the word "stimulus" returned sponsored-link sites like officialstimuluschecks-com and ObamaStimulusGrant-net, in addition to many news stories and Web pages discussing the bill. Ads for grant schemes used enticing testimonials such as, "I got my stimulus check in the mail in less than 30 days ... ."
[The U.S. Small Business Administration also has released a warning about companies claiming they can get stimulus money for small businesses. Anyone receiving such a solicitation is urged to contact an SBA representative.]
"The stimulus package and other efforts on Capitol Hill to jump-start the economy are dominating the headlines and unscrupulous businesses know that they can exploit the news to take advantage of financially desperate families," said Paula Fleming, vice president of communications and marketing for the regional BBB serving Eastern Mass., Maine, Rhode Island and Vermont. "These businesses are simply charging people for free information and chipping away at the bank accounts of families nationwide when they can least afford it."
Ads have also popped up on one of the most popular Web sites on the Internet. In February, ads on Facebook directed the public to Web sites such as www.davidgetsgreen-com and www.jakecutler-com, which were set up to look like blogs written by people who are sharing the secret of how they received $12,000 in grants from the government to pay off their debt.
These "blogs" lead to Web sites such as www.federalgovernmentgrantsolutions-com that prominently features a picture of President Obama and claims that "President Obama want [sic] to issue a STIMULUS PLAN for people in need of government aid and free federal money."
The Web site is for a company called Government Grant Solutions and is selling a kit that purportedly provides advice on how to apply for grants as well as access to a directory of federal and private grants. The Web site includes "testimonials" from people who claim that they were able to obtain money which went toward staving off foreclosure, buying Christmas presents, fixing their car or paying bills.
BBB has received hundreds of complaints from consumers who went to such sites. Two Las Vegas-based companies, Grant Instructor and Raven Media, have set up dozens of Web sites; the BBB has received 409 and 295 complaints, respectively, about these companies from consumers across the nation, earinginng both companies an F grade from BBB.
According to the BBB serving Utah and the BBB serving Las Vegas, complainants state that they ordered a "free" CD and were promptly charged as much as $69.95 on their credit or debit card. Some complainants said their credit card was charged by other companies as well.
These companies fail to provide refunds and some complainants ultimately had to cancel their credit cards to stop being billed as much as $69.95 every month.
BBB offers the following advice:
■ While it's true that the federal government does give out billions of dollars in grant money every year, most grants are given to help students pay for college or for specifically defined reasons such as for research or to businesses in particular industries.
■ There's no reason to pay for software or guides when applying for government grants. Such information is already available for free on government Web sites including grants.gov, Studentaid.ed.gov, govbenefits.gov and sba.gov.
■ Always check out a business' BBB Reliability Report before giving out any bank account or credit card information. Reliability reports are available for free at bbb.org.
BBB provides objective advice, free business BBB Reliability Reports and charity BBB Wise Giving Reports, and educational information on topics affecting marketplace trust. To further promote trust, BBB also offers complaint and dispute resolution support for consumers and businesses when there is difference in viewpoints. Go to BBB.org for more information.
