Better Business Bureau of Southern Arizona is warning businesses to be on the lookout for invoices from a company called AYPR Inc. which claims to be based in Duluth, Minnesota.

Those who have complained state that the company is billing for services they did not order or authorize. The company has an F rating due to questionable business practices and a pattern of complaints.

AYPR Inc. claims to publish business directories and attempts to charge companies for being listed or featured in those directories. However, in many schemes of this nature, businesses are tricked into paying for services for which they weren’t interested or were not aware they would be charged. Often times the invoice provides the name of an actual employee (either present or former) who “authorized” the charges. In many cases, the employee is not in a position to authorize purchases.

In addition to the Duluth address, which is actually a mail shipping and services store according the BBB of Minnesota and North Dakota, AYPR claims to have addresses in: Colorado, Idaho, Indiana, Louisiana, New Jersey, New Mexico, North Dakota, Oregon, Texas, Utah & Wisconsin.

Here’s how directory schemes often work. An employee is contacted usually by fax and asked to fill out a few vague questions to confirm basic company information. What the employee doesn’t realize is that by simply providing this information, they open the door to future billings. The faxes contain fine print stating that by signing and returning the form, the business is agreeing to be charged and listed in the directory, which may or may not even exist. The business is often invoiced for hundreds or even thousands of dollars.

These scammers sometimes pretend to be verifying or renewing a company’s “existing” directory listing. They send urgent invoices, create confusion and count on an organization paying to avoid being hounded. When companies refuse to pay, the scammers use high-pressure tactics such as bullying, threatening collection or legal action.

BBB and the Federal Trade Commission (FTC) have the following tips to avoid being the victim of a scam:

• Designate only certain employees to make company purchases.
• Train your staff to direct calls to only employees authorized to order supplies and services.
• Check all documentation before you pay bills. Make sure you intentionally purchased the items for which you have been billed.
• Know your rights. If you receive supplies or invoices for services you didn’t order, don’t pay. It’s illegal for a seller to invoice you, send threatening notices for merchandise you didn’t order or ask you to return the merchandise.
• Report fraud. Report this type of scam to the BBB, the FTC, the Postal Inspection Service and the Colorado Attorney General’s Office.

Credit is a convenience; it allows you to charge a meal on your credit card, pay for an appliance with an installment plan, or take out a loan to buy a house. With credit you can make a purchase when you lack ready cash, and you can enjoy the purchase while you are paying for it.

However, when dining out at a fancy restaurant or spending the night away in a hotel, it’s important to take notice of what the banking industry calls an “authorization hold.”

The issue was first identified by BBB of Southern Arizona when a customer complained that a restaurant had put through a charge equal to his bill, plus 20%, even though he had left the server’s tip in cash. Upon investigation, Dispute Resolution Specialist, Micaela Clubb, discovered that it’s a common practice.

Here’s how it works: Let’s say your restaurant bill comes to $100 and you give the server your credit card. When they run it through, they put an authorization hold on your account for $120, assuming you’re going to add a nice tip to the bill. But you leave the tip in cash on the table instead. Still, your bank or credit card company “holds” that $120 for a couple of days until the actual amount of your charge is processed, and that means you don’t have access to that $20. If you are close to your credit limit, it could mean a purchase is declined. If you used a debit card, it could mean a bounced check and overdrafts fees.

Now imagine it’s a hotel stay. You’ve checked in and given a credit card at the front desk. They put an authorization hold on your card for what they think your total bill will be (room charge, taxes, and incidentals). If you are staying for several nights, this could amount to a lot of money that you no longer have access to; and when you are traveling, that can be a huge problem.

Credit card processors discourage vendors from doing these kinds of holds, but they are perfectly legitimate as long as the vendor notifies customers of the practice. BBB advises consumers to keep tabs on their credit and bank accounts online, especially when traveling, and read the fine print on hotel agreements. When dining, pay for your check and tip together with either credit or cash, but not both. And whenever possible, keep a “cushion” of available funds on credit cards by paying off the balance regularly.

For more consumer information you can trust, visit www.tucson.bbb.org.

Sneaky little charges are making their way onto telephone bills and can go unnoticed for months. Victims of so-called “cramming” often face a tough battle to stop being billed every month and start getting their money back.  In order to fight cramming, Better Business Bureau of Southern Arizona recommends keeping a close eye on every bill and being extremely cautious when giving out personal information such as phone numbers.

“You might think that nothing bad can happen from giving out your telephone number, but you should guard those digits like you would a credit card or social security number,” said Kim States, BBB President. “Monitor your monthly statements closely because even if you are very protective of your personal information, cramming can still strike.”

Cramming is on the rise, according to the Chief of the Consumer and Governmental Affairs Bureau of the Federal Communications Commission during an interview with Herb Weisbaum, consumer reporter for MSNBC.com.  Cramming can come from any number of sources. Some victims may have inadvertently signed up for a subscription service—such as for “free” ringtones or a daily joke or horoscopes–not realizing they’d be billed every month. The Federal Trade Commission recently cracked down on one company that used telemarketers to convince people into signing up for “free” trial services.  Calling a psychic hotline or entering a sweepstakes can also lead to cramming. Unfortunately, in some cases, the victim is just an unlucky random target.

BBB recommends taking the following five steps to fight cramming:

• Keep a close eye on monthly statements. Anyone can become a victim of cramming so monitoring you monthly bills is extremely important. The sooner you spot the charges, the sooner you can fight them.

• Know your rights. Contact your telephone provider to see if you can completely restrict (more…)