Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, September 28, 1994 TAG: 9409290022
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
SOURCE: Sandra Brown Kelly
DATELINE: LENGTH: Medium
That's not to suggest everybody in the marketplace is up to no good. But witness what happened to one Roanoke Valley woman when desperation and opportunity converged:
Brenda, who asked that her last name not be used, had three days to come up with $1,200 to pay college tuition when she spotted a newspaper classified ad that offered to consolidate personal debts of amounts ranging from $1,000 to $299,000.
"It was the dumbest move I ever made," Brenda said in hindsight.
She called the 800 number the company had in its advertisement, discussed her situation and agreed with the company that she needed to borrow $4,000. That amount would pay off some bills and the college.
The company, Republic National Financial, which lists a Los Angeles address, faxed the loan papers to a branch library at Brenda's direction. She was to fill out the papers and return them along with her first payment to Republic using the loan company's Airborne Express account.
That sounded OK to Brenda, so she filled in the information on which debts were to be paid, signed the papers, attached a money order for $273, and sent it all off Sept. 7 by Airborne.
Republic promised to get the bills paid within seven days, but when Brenda checked with the companies to see if they received payment, none had.
"They didn't even know what I was talking about," she said.
In the meantime, Brenda borrowed the tuition money from family members and resigned herself to having learned a $273 lesson.
Republic still may be planning to send her the money she agreed to borrow, but neither she nor I have been able to reach the company to ask when to expect it.
One of the company's telephone numbers doesn't answer; the other two are always busy. I tried calling each at least 25 times, at all hours; she has done likewise. The phone company in Los Angeles has no record of such a company.
Dun & Bradstreet, a business credit report agency, was unable to locate the company Tuesday.
There apparently were no protections against this kind of thing.
"We try not to run any ad that would be a misrepresentation or illegal in the state of Virginia," said Lee Clark, Roanoke Times & World-News classified advertising manager. But sometimes it happens. The newspaper has the same information as Brenda on the company's whereabouts.
Had the mail been used for the transaction, the U.S. Postal Service could be asked to investigate. The state can't get involved, because Republic isn't registered in Virginia.
Even if it were it wouldn't mean anything, said a spokesman for the State Corporation Commission. There are no regulations to cover financial institutions that don't have physical locations in the state, he said.
Airborne Express has revoked Republic's credit after hearing of Brenda's complaint.
There were some red flags that should have gone up on an offer like this, however. One was the 800 telephone number; another was the cash payment required up front. A third was the Los Angeles address; it's doubtful that a company in a distant location could do anything for you that a local firm couldn't.
It's tough to separate the scoundrels from the saviors, though. For example, some of us in the Roanoke Valley recently received a piece of mail that on first glance appeared to have come from the federal government.
The piece of mail was one of the notched envelopes like credit card companies send to verify receipt of cards. The return address was Washington, D.C., and typed on the outside of the envelope was a line reading "1994 Social Security Update."
Inside was a postcard which, on one side, mentioned that funerals can cost 20 times the amount paid under the current Social Security Administration benefit.
If you sign the card and return it, a representative will show you how to "qualify for the Social Security supplement," the card reads.
Well, of course, it's an insurance come-on and one that has brought more than 100 complaints or inquiries, according to Postal Inspector Martin Davis in Richmond.
The postcard I got was to be returned to Dallas. Davis said the company has mail going to six locations, in Ohio, Texas, Nevada, Florida, the District of Columbia and California. He also said California is doing a preliminary investigation on National Processing Center.
He advised that returning the card is likely to do nothing but get you on some mailing lists you don't want to be on.
So plan to celebrate Consumer Week by remaining skeptical.
by CNB