A BBB Team member recently brought into the office an official looking document for review. Okay, so what makes it look official?
- Document is broken into grids
- Official looking seal at top
- Reference to file numbers, codes, deadlines
- Bar codes
- Government/Official sounding references (in this case, Economic Stimulus Act 2009 AND FHA references)
When the market started the downward spiral and mortgage companies became “creative” in their marketing, home owners started receiving these “official” solicitations which were simply ploys for the homeowner to refinance. My favorite is the single mom with children at home who received a copy of her deed (public record by the way) with blank piece of paper attached on which was written, “call me about this” with first name and phone number. The mortgage company denied this strategy was one of intimidation, but if not, why didn’t they just send a marketing letter on their own letterhead? Why the deception?
Another favorite ploy of not-so-up-front lenders is to send a check through the mail. When you flip the check over to endorse it for some fast bucks, you see that your endorsement is actually a signature for agreement to a loan! One of our local financial institutions uses this strategy. Their checks and interest rates vary dependent upon your credit score.
There is nothing illegal about these forms of advertising. But when consumer trust is at an all-time low, why businesses resort to this type of advertising is totally beyond my understanding. You can help your community by partnering with BBB – all it takes is a little time and maybe a stamp. By sending us copies of ads and letters that don’t seem quite right, your BBB can review and challenge any business that makes unsubstantiated, outrageous or misleading claims/offers. If you suspect you’ve received an illegal solicitation, you hang on to the originals and contact the
U.S. Postal Inspection Service.
BBB was founded on the principals of self-regulation that originated as a result of the infamous snake oil advertising. Check out our
Code of Advertising and be an advocate for responsible advertising. Notify your
BBB if you receive false advertising. You can mail us copies questionable solicitations at 1414 Key Highway, Ste. 100, Baltimore MD 21230 or via fax at 410-347-3936.
We look forward to hearing from you and talk soon! Angie
