Protecting Yourself from Business Scams

Everyone wants to think they can spot a scam, but scams can be sophisticated and sometimes hard to spot. Here are some tips when conducting business transactions:

• Don't be pressured into making a decision. Any offer that is only "good for today" is probably not a good offer.
• Get it in writing and read the fine print. If you are unsure what the fine print means, don't sign anything – take it to a trusted friend, relative, attorney, or counselor who can help you understand it.
• Understand the true cost of a business transaction. How much will you really pay? Is the true cost worth it to you, or are there other alternatives that could be less costly in the long run?
• If it sounds too good to be true, it probably is.

Rent-to-own businesses provide consumers with products, like furniture, for a monthly fee. Although seemingly affordable, you may end up paying exorbitant prices for these products through the long-term rental agreements. Moreover, rent-to-own businesses usually do not report to credit reporting agencies, so it won’t help to improve your credit when you make your timely payments.

You are better off making a purchase using a credit card or putting it lay-away than using a rent-to-own business. In doing so, you save money, and if you use a credit card, can obtain a credit history. But, remember to not overuse your credit cards – if your current balances are high or you are having trouble making the minimum payments, you may want to consider postponing a purchase that will increase your credit card debt.

Instant Income Tax Refunds. Some companies offering instant income tax refunds provide consumers with offers too good to be true. There are reputable companies that also offer instant tax refund loans, but these refunds are not free. Be sure to understand the cost of the offer before accepting it. Instant tax refunds or refund anticipation loans are an expensive way to get your tax refund more quickly – you may gain a week or so in getting your money, but you'll pay a high fee for the service.

Protect yourself from these companies by learning about tax laws or using the services of a tax attorney or accountant. File your tax returns electronically and ask for the funds to be transferred directly into a savings or checking account. Your return will be promptly processed and your funds will be safe and secure without the additional cost.