Protecting Yourself from Business Scams

Everyone wants to think they can spot a scam, but scams can be sophisticated and sometimes hard to spot. Some rules regarding your personal business include:

• 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 do not typically cooperate with the credit industry – they don't report your payment record to the credit reporting agencies.

You are better off making a purchase using a major credit card or department store credit card than using a rent-to-own business. In doing so, you save money and obtain a credit history.

Instant Income Tax Refunds. Some companies offering instant income tax refunds provide consumers with offers too good to be true, like instant income tax refunds and other incentives. 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. Beware of offers like these! 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.