Better Business Bureau warns of work-at-home seminars

A growing number of Iowans are being burned by work-at-home and investment seminars that require upfront payments, according to the Iowa Better Business Bureau.

Barbara Green of the bureau's Cedar Rapids Iowa says the recent surge in complaints has been saddening, in part because many of the victims are out of work and desperate enough to find a way to gain useful employment or investment income.

Victims often went to a seminar because it was advertised as free, Green said, assuming there would be no financial risk. But when they get to the seminars - usually held in a local hotel conference room - they are required to give out their credit card number to obtain necessary supplies or publications. In some cases, she said, they're even convinced to give out their bank account number with representations that it will be used to automatically deposit their pay.

In one case, a young woman who attended a work-at-home seminar was convinced to spend $6,000 to buy an expensive computer and printer that she was told would be needed to perform the work, Green said.  She was on the verge of having her credit card limit raised in order to charge up to $20,000 for other materials or equipment when her parents got involved and insisted she learn more abou tthe company.

Once the money is transferred to the company, Green said, they rarely receive any income-producing work to perform from home, and have difficulty contacting the company.

"Some of these stories break my heart,"  said Green, community relations representative for the Better Business Bureau.

Green said the seminar sponsors often don't fully identify their organization before convincing participants to give them their credit card numbers or make a payment. That can make it difficult, Green said, to check out their backgrounds and complaint history.

The Better Business Bureau advises against giving money or any credit card or account information to the seminar sponsors until after they have checked them out with the bureau or other organizations, such as the Federal Trade Commission.

"You shouldn't have to give someone money to give you work," Green said, calling such requirements a red flag.

The widespread advertisement of the seminars on local radio, television and newspapers, and the fact that they are held in local hotels tend to give the groups an of credibility, Green said.

In trying to research the organizations, Green said the Better Business Bureau has found out that many of the local media outlets received the paid advertisement as part of nationwide media buys and had no direct contact with the firms sponsoring the seminars.

Green said work-at-home and investment scams are nothing new, but the local seminars with high-pressure tactics to enlist participants has become more common  in the recent past.

Individuals wanting to check out the background of seminar sponsors can call the Better Business Bureau at 1-800-222-1600 or research the firm online at Iowa.BBB.org