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Better Business Bureau Consumer Alert -

Posts Tagged ‘refund’

Refund Anticipation Loans Come With Risks

Saturday, March 16th, 2013

When expecting tax refunds, cash-strapped households might consider refund anticipation loans or RALs. However, Better Business Bureau of Southern Arizona warns filers that RALs come with risks.

Based on taxpayers’ expected tax refunds, these short-term loans typically target low-to-moderate income families who could benefit from immediate cash. RALs can carry annual percentage rates as high as 500 percent. In fact, these loans are so expensive that the Military Lending Act bans them for service members.

“With tax refunds, patience is a virtue,” says Kim States, BBB president. “Waiting extra weeks for tax refunds can save consumers from ‘over borrowing,’ excessive fees and high interest rates.”

BBB encourages eager refundees to remember these points:

  • RAL recipients are responsible for repaying the total loan amounts, even if tax returns are less than expected.
  • Understanding the terms and conditions of RALs is critical. According to The Center for Responsible Lending, the average RAL APR in 2010 was 149 percent. Unexpected fees can cause serious financial damage.
  • The Federal Deposit Insurance Corporation has forced all major national banks to discontinue these types of loans. Be wary of sketchy lenders, both online and off.

Don’t bet when borrowing; visit bbb.org.

Alert: BBB Warns about Online Auto Parts Dealer

Tuesday, February 12th, 2013

Better Business Bureau of Southern Arizona is issuing a nationwide alert about CorvetteSouth, a Mississippi-based online company that has received complaints from consumers all across the country. Complaints against CorvetteSouth, which sells corvette parts and accessories through its website www.corvettesouth.com, have come from consumers in 13 different states and one in Canada.

Complaints filed with BBB have stated non-delivery of parts or accessories, refund and exchange issues, and customer service issues. Consumers also report contacting the company multiple times either by email, letter or phone and receive no response. They also report difficulty in obtaining refunds after their credit card was charged.

The company has fifteen unresolved complaints to date.

BBB advises consumers to always check on a company at bbb.org before doing business. In addition, BBB offers consumers these tips on safe online shopping:

1. Check a site’s security settings. If the site is secure, its URL (web address) should start with “https://.” You also may see a picture of a small closed lock in the lower right hand corner of the screen.

2. Shop trustworthy websites. Look for the BBB seal on the site and click to confirm that it’s valid. New BBB dynamic seals will take you to a site’s BBB Business Review. You also may find the review at bbb.org.

3. Pay with a credit card. Under federal law, you can dispute the charges if you don’t receive an item. Shoppers also have dispute rights if there are any unauthorized charges on the card, and many card issuers have zero-liability policies if someone steals and uses your card number. Check your credit card statement regularly for unauthorized charges. Never wire money.

4. Keep documentation of your order. Save a copy of the confirmation page of an order or emails confirming the order until you receive the item and are satisfied. Obtain a tracking number for shipments. The tracking number can help you find a lost order.

5. Know your rights. Federal law requires that orders made by phone, mail or online be shipped by the date promised or within 30 days if no delivery time was stated. If goods aren’t shipped on time, shoppers can cancel and demand a refund. Consumers also may reject merchandise if it is defective or was misrepresented.

BBB Tips for Happy Holiday Returns, Refunds, and Exchanges

Tuesday, December 25th, 2012

Tis the season for giving, but what happens if the gift you have given or received needs to be returned or exchanged? Better Business Bureau of Southern Arizona wants to remind consumers to know their rights regarding returns, refunds and exchanges.

“Inevitably, following the holidays, BBB receives hundreds of complaints from consumers because they are unable to return a gift,” said Kim States, BBB President. “Unless the seller has a specific return and exchange policy or the merchandise is defective or misrepresented, all sales are final.”

When it comes to returning gifts this holiday season, BBB wants to remind you to know your rights.

Know the seller’s return policy – Be sure to find out about a store’s return policies. Keep in mind that returning or exchanging items is a privilege, not a right. Generally speaking, state and federal laws do not require that retailers provide returns or exchanges. A business is not obligated to accept items for refund, exchange, or credit except in cases where the item is defective or misrepresented. In some cases, defective products must be returned to the manufacturer rather than the retailer based upon the product’s warranty. So make an effort to understand the terms and conditions of warranties.

Do not assume the return policy applies to sales or clearance items – Some merchants consider sales items to be final. If you are the gift-recipient, do not assume you have the right to return or exchange an unwanted present. Like the shopper, you are bound by the merchant’s return policy.

The merchandise was defective. Now what? Regardless of a store’s policy, if the goods you have purchased were misrepresented or are defective, you have every reason to expect the store to provide a suitable substitute, refund or make proper repairs. The laws in all states require a store to make good in such cases. Keep in mind that health regulations may forbid returns of such items as hats, bathing suits or intimate apparel.

Check if there are restocking fees - If you custom order a product, many stores charge a restocking fee for the return of such a product. It is a good idea to keep the packaging an item was wrapped in just in case it is required for return by the store to the manufacturer. Or if you know you are going to return it, don’t open the package at all. Many retailers have restocking fees for high-priced merchandise such as electronics and furniture.

You want to return an item and get your money back - A customer’s money may be returned under a refund policy. Stores that offer refunds as a policy do so voluntarily and, in most cases, are not compelled by state or federal law to do so. These policies usually require that products be returned to a store within a specific period of time and in original purchase condition. In almost every case, a sales slip or some other evidence that the item was actually purchased at a particular store is also required. If a customer does not have evidence of purchase, he or she may not receive a refund or may not receive the full amount of the purchase price. In some stores, all sales are final.

Understand exchanges or creditsIn a product exchange, an item may be returned and another item of equal value may be received in its place. This privilege is usually extended when the buyer has made a reasonable mistake; for example, in the size or color of the product purchased. In other instances, customers may receive a credit slip after returning an item. This store credit allows the consumer to purchase any other item at that store which has the same monetary value as the item he or she has returned.

What to do if the product has a separate written warrantySome products have warranties that spell out the manufacturer’s liability if the product is defective. Reading a product’s warranty before returning an item to a store from which it was purchased is highly recommended. In some cases, warranties exempt stores from product liability and require consumers to mail the product to a manufacturer or other business in order to receive monetary refunds, credit, or product replacement.

If the purchase is made under a written contract, normal return privileges may be affected – Written contracts sometimes have special provisions for the return of goods. A contract usually provides its own conditions for return of the goods and cancellation of an agreement. Always read and understand a contract before you sign it; never sign a blank contract and always keep a copy of the contract.

Don’t delay – If a store has a return policy, there may be time limits for returns.

And Remember- Always keep receipts and original packaging!

For more consumers news and tips or to find a business you can trust, visit www.tucson.bbb.org.