In September, thousands of consumers asked about discount medical card offers, and advance fee loan scams targeted businesses and individuals with promises of quick, easy loans.
Discount Medical Cards
A business that sells discount medical cards was one of the most-inquired-about businesses at the BBB in Dallas in September. Discount medical cards may seem like an attractive option for saving money, but Better Business Bureau advises consumers to do their research and ask questions before signing up. Discount medical cards are not a form of healthcare insurance and not subject to the same type of regulatory oversight as insurance, and the cards are not necessarily accepted by all physicians or pharmacies.
BBB has received complaints from consumers who signed up for discount medical card programs and were extremely disappointed with the lack of convenience and realized savings. Some complaints say that only a limited number of physicians and pharmacies accepted the cards, making their use difficult and inconvenient.
Before signing up with any discount medical card program, BBB advises that consumers should ask:
• What is the annual cost of the plan? (Don’t be swayed by exaggerated savings claims. “Up to 40 percent” does not mean a guaranteed 40 percent savings.)
• What are the benefits of the discount? What healthcare products and services are covered? Which ones are not covered?
• Which local healthcare providers and facilities accept the discount card? If the sales person refuses to provide such a list, consumers should not do business with them.
• Who do I call if I have a problem with the discount plan? Can I cancel my membership at any time? Is there a cancellation fee, and what is the refund policy?
BBB offers video tips on discount medical card programs.
Advance Fee Loans
In this uncertain economy, businesses and consumers who are having a hard time obtaining loans may fall prey to advance fee loan schemes. In this type of scheme, the schemers claim that they can help borrowers obtain loans and ask for advance fees of several hundred to several thousands of dollars, but the loans are non-existent. Several BBBs are reporting active schemes:
Stockwell Financial Services, Oklahoma City, OK -- The BBB serving Central Oklahoma reports that it has received complaints from several states including Texas. Customers complain that after paying a $900 "processing fee", they did not receive a loan. Some customers say they were told that they "failed the loan insurance application" and were asked to pay an additional $900. The address the scheme uses in Oklahoma City does not exist.
International Funds & Financial Services, Hackensack, NJ -- The BBB serving New Jersey reports that customers allege the scheme promises to secure a loan after a fee of 10% of the loan amount has been wired to an address in Alberta, Canada. In some instances the schemers ask for an additional $1,000 to cover closing costs. Any attempts to obtain the loan or refunds have been unsuccessful. Mail sent to the scheme's business address has been returned by the Post Office.
Rothwell Financial Group, Louisville, KY -- The BBB of Louisville reports that consumers schemers using this name are calling businesses and consumers across the U.S., offering loans but requiring upfront "collateral payments." The BBB is developing more information.
BBB warns that if a company can really help get a loan, any fees will not be paid up front. For more, see this warning from BBB on advance fee loan schemes.