BBB Under Scrutiny

Link: http://www.bbbroundup.com

We just concluded mediation on a lawsuit filed against the Northwest North Carolina BBB regarding their review/rating of our corporate headquarters. We successfully were awarded an injunction on our “F” rating pending our suit. We believe the local chapter agreed to settle after they became aware of the harm that they had done to us and the millions of dollars we would probably be awarded by a jury for damages.

I would be happy to discuss it with you, but of course, I may need to do so anonymously. My chief goal, which I believe is the same as your forum, is to end the arbitrary nature of their new “A to F” grading system, and the other conflicts of interest and of charter within the BBB.

Link: http://www.bbbroundup.com

Our company is located in Provo, Utah. We have been in business 9 years and have annual revenues of approximately $20,000,000.

I can't thank you enough for bbbroundup's website and illuminating the challenges businesses around the nation are facing as they deal with the BBB.

To make a long story, when we were notified of the new BBB rating system we were alarmed. Together with another partner, we met with the president of the local chapter (Jane Driggs of the Salt Lake City office). The purpose of the meeting was to appeal the rating. Ms. Driggs was most courteous but at the end of our presentation, she informed us that the local offices had no control over the rating system and were not empowered to consider our appeal. She instructed us to appeal directly to the CBBB.

Accordingly, on April 10, 2009 we submitted a 5-page letter outlining the appeal of our company's letter grade. We also submitted a one-page Executive Summary. (I will copy the Executive Summary into this email.) On April 27, 2009 the CBBB acknowledged receipt of the appeal and stated: "We will forward your complaint to the appropriate BBB for their response. Please allow at least 30 days for this process."

In a letter dated June 3, 2009 we received word from the CBBB that the appeal had been denied. The grounds for the denial were "Please be advised there is no appeal process. We at the Council of Better Business Bureaus (CBB cannot change your rating; we can only help to explain it." Not only was the appeal denied, it appears that the appeal was never even heard. It apparently was dismissed without even considering the merits of the appeal.

The BBB's refusal to consider the appeal, and the rating system itself, are blatantly unfair. In our entire history, we have no unresolved complaints!!

I would be pleased to provide much more detail regarding this issue. We would also appreciate any guidance you or your organization may be able to give relative to how we can best work through this ongoing nightmare.

Again, thank you for your website and the encouragement it gives businesses to know we are not alone in our frustration.

Link: http://www.bbbroundup.com

I have grave concerns with our Minnesota BBB chapter and the new BBB rating system.

After many months of waiting with the promise that our "grade" would go to an "A" in April 2009, and having held off on special marketing efforts while we waited, we were told we would have to wait until next year before the grade would change. We were informed of the decision near the end of April.

Having canceled our membership our grade went from an "A-" to a "B+". See the email below for my question as to why, and their response. What troubles me is that we divulged information that we do not make publicly available, given the promise our "grade" would increase to an "A" if we gave them this additional information. We were undoubtedly deceived.

This deeply betrayed my trust in the BBB and I question whether this new grading system is truly good for consumers and businesses alike.

It's clear that should one fail to give the BBB money, they will subject the business to a biased letter grade and deceive the public with their powerful slogan, "Start with Trust." This is nothing short of extortion.

The public has a right to know the truth behind the BBB and their "Start with Trust" marketing strategy. The founders of the BBB (from my home state) would roll over in their graves if they knew what the "non-profit" organization has evolved into.

I continue to meet business owners who have experienced the new grading system at the BBB, and all agree on one thing, it is biased. However, the "Vision, Mission and Values" section on our local chapter's website claims otherwise:

"BBB ensures that high standards for trust are set and maintained. We exist so consumers and businesses alike have an unbiased source to guide them on matters of trust."

The full text can be found here:
http://minnesota.bbb.org/vision_mission_values

Now, I find it hard to believe the BBB ensures high standards when they cannot even answer with a solid explanation as to how their grading system works.

Link: http://www.bbbroundup.com

Two days ago, I filed a complaint of unfair business practices against the BBB here in Metro-Phoenix with the Arizona Attorney General.

Among other things, I think we should encourage filings with the attorney general in each state and federally.

This BBB problem is multifaceted and widespread. It is hard to keep the messages of dissent easy to understand and actionable. I would like to work on a message that will resonate.

Link: http://www.bbbroundup.com

I am a business owner here in Orange County California. I just want to say that you are on the money with your reporting and something needs to be done to stop this borderline criminal behavior - specifically this BBB office in Southern California.

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I applaud you. As a "non-member" of the BBB of Los Angeles, they have unfairly been damaging our business's reputation with a "D" rating.

We have been in business over 18 years now - in the same location. We have had 3 complaints
in all these years; one not really a complaint, but a shipping issue.

In speaking with them; they indicated to me that they were governed by the State of California. I contacted the Dept. of Consumer Affairs, who advised me otherwise. In fact when I explained that this agency was now costing our small business money, the individual I spoke to advised me to sue the BBB.

After contacting the the BBB back - they could not explain their grading system. I then
received a "sales pitch", after which I foolishly stated "it sounded like extortion" to me.

Because of them; not only are "we" being affected adversely, but our customers are now being affected. I would love any response from you as how to handle this issue.

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Like many I have complained to the LA BBB concerning Boingo Wireless fraudulent billing practices. The LA BBB at the time gave Boingo an F for the following reason:

Company Rating F
Our opinion of what this rating means:
We strongly question the company’s reliability for reasons such as that they have failed to respond to complaints, their advertising is grossly misleading, they are not in compliance with the law’s licensing or registration requirements, their complaints contain especially serious allegations, or the company’s industry is known for its fraudulent business practices.

I published the rating on my activist website against Boingo at www.ihateboingo.com .
Boingo became a member of and accredited by the LA BBB on 8/19/2009. Their rating automatically went from an F to a B- how ironic. According to your organization BBB Round up, the LA BBB Memberships range from $365 per year up to $8000 with an average membership fee of $425. I beg you to please investigate this matter. I can't seem to understand how a company like Boingo with consumers complaining from around the world about their fraudulent billing practices get a B- rating from the LA BBB. More importantly why did their rating automatically jumped from an F to a B- when they became a member.

I wish I had found about your website sooner. I thought the LA BBB or BBB for that matter was a honest organization, Was I wrong.

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I was told by Kim (at the LA BB that my company's rating would be INCREASED if a membership is purchased and that "past complaints" would be handled behind the scenes and would NOT be reflected on my page. The entire BBB membership is a scam. Look at Balboa Capital in Irvine, Alliance Funding in Orange, CA. Alliance Funding was in the NY Times because of "deceptive" selling tactics. The company at one time had over 40-50+ complaints and an "unsatisfactory" rating. Once the membership was purchased, half the complaints were erased and the rating was increased to a "B" (I know the owner Brij Patel). Balboa Capital is notorious for their "deceptive sales tactics" and also had a VERY unsatisfactory rating until they purchased a membership. Let's just say I'm good friends with people in "equipment financing/leasing" and it's understood that you "pay for protection" with the BBB. It's the biggest scam going and people think the BBB is a "non profit" company when it's ALL about selling memberships at any cost.

After trying to work with the Better Business Bureau to fix the rating problems for an entire industry, the BBB has now implemented a 12 page document that requires business in a specific industry, debt settlement, to provide proprietary information to the Better Business Bureau. This may fall under the conflict of interest parameters as well as many board members are either current or former employees or board members of credit counseling companies, which debt settlement companies compete with directly for business. This process has been going on since the beginning of this year and at this point, the majority of debt settlement companies are refusing to complete the questionnaire. You can easily obtain a copy of the questionnaire by contacting any BBB office.

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In May 2009 I formed a company in Orange County, Ca. One month after I opened my doors for business I happened to find my way to a web site called www.Trustlink.com. Unbeknown to me at the time, this site is owned and operated by William G. Mitchell, the President of the LA BBB.

Trustlink.com is a dragnet for the LA BBB to gather information and canvas for business. The website, allows people to ask questions and lodge complaints about their business dealings. It’s monitored 24/7 by the BBB staffers, including Mr. Mitchell.

After reading one of Mitchell’s responses to one of the webs visitors, I disagreed with his advice. He had referred a visitor to a BBB endorsed business. This was a clear violation of the BBB bylaws whereby they are not to endorse any business or service.

The following day my company was listed on the BBB site with an F rating. Additionally, when I Googled my company name, I found that my company was on the TOP of every search engine pointing to the BBB “F” rating of my company. I lost customers and my phones stopped ringing.

The nature of my business is such that most on my potential clients trust the BBB and look to them for honest guidance. One of the first questions my customers ask is if we are a member of the BBB?

Although I had no complaints filed against my company, I made the fatal mistake of challenging the President of the LA BBB. That was my wrongdoing and for that my business and financial welfare is being punished by the LA BBB.

Shortly after I discovered that my company was targeted in this dishonest manner, I had employed the services of an attorney to contact the CBBB’s legal counsel, Alan Cohen.

Mr. Cohen stood by Mitchell’s actions and would not remove my company name nor remove or modify the “F” rating, despite my plea for them to do so.

I have documented all my actions and all of the BBB’s actions.

The BBB is no more than a high tech mob and is rotten to the core. They need to be investigated for what they really are. A modern day crime family! They are in clear violation of the law and should be prosecuted under the RICO Act as a corrupt organization.

I have the story and documentation to prove it.

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I had an old business in real estate/mortgages and my rating was an A for over 4 years straight. And then, my clients starting calling me back about payment affordability issues with lay-offs and pay cuts so I sent them to another firm to get help with loan modifications. It turned out that that firm wasn’t able to help all the clients I referred, although they were about 90% successful. So some of my clients blamed me for referring them to this other company and filed complaints. I fought every single one and within 3 months my rating went to an “F’. It killed me. I since closed out that business and started a new corporation across town doing something completely different. Get this, the BBB is now showing my new address and saying that we did a midnight move! So now I’m dealing with clients in my new business who are asking me about our rating and I’m losing deals again! The BBB isn’t responding to any of my emails and when I call, they keep telling me that I’m full of it. I’m probably the straightest shooter out there, I’m not a scammer by any means, but the whole loan modification thing just absolutely killed me and it’s STILL KILLING ME. Do you have an attorney you can recommend that we can use to fight back? I’m just so sick and tired of the BBB and their bully tactics. For every one complaint on the BBB has, I have at least 30 to 40 happy clients. Doesn’t that mean anything? I’m not saying all complainers are crazy but mathematically, isn’t it plausible that a percentage of all of your clients will have some sort of screw loose? Why is that never a factor?

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I am elated to find that someone, at last, is taking on these Fraud Mobsters. For the past 10 years they have hounded me on a weekly/monthly basis to get my business, promising to make my company look "favorably upon". I have refused to join them for 10 years now and my ratings continues to be F.

The problem with their F rating is that they are not indicating the actual reason for the rating - they promote their Rating Explanation which creates a cloud of smoke that no person would try, or be able to clear. After all, why would you pick one reason over the other? They list what the rating reason could be instead of simply what it is. They start the list with the most severe business violations to create a worse case scenario for the consumer. No consumer will read past the first 3 reasons and if that person does then he or she is left to think that the company they are inquiring about either violated all of codes, some of them or one but why bother with such a company?

My actual reason for the F rating is buried at the bottom of their page and nowhere does it indicate that it is the sole reason for the F. If the BBB was an honest protection agency then why not list the actual reason at the top of the page next to the rating? why not indicating at the bottom that that is the only reason? why create a cloud? If they are truly a consumer protection agency then do your job honorably as you want the business you are scrutinizing to behave.

I will not be arm wrestled into being a member and with thousands of happy clients I can stand up to them and say I love my clients and serve them honorably even with your tarnishing. Note that when you do respond to them they say that you are not a member and you need to become one in order for them to process you respond.

Also note that that:
1. A rescinded complaint is not showing as rescind.
2. A complaint written well but fraudulently even for $1.00 in damages will still tarnish your record and put you at F.
3. A reason for a bad rating can be "Whether the business is a BBB Accredited Business" so that means if you don't join you're toast.
Sample of their Rating Explanation :

• The business' length of time in operation
• Whether BBB has information that the business does not have required competency license(s)
• Any known government actions against the business that are related to marketplace activities
• Any advertising issues found by BBB
• The number of complaints processed by BBB from the business’ customers
• The number of complaints processed by BBB from the business’ customers that are of a serious nature
• Whether the business has responded to complaints received by BBB
• Whether complaints have been resolved in a timely manner or the business has demonstrated it made a good faith effort to resolve them
• Business’ overall complaint history with BBB
• Whether the business has honored any commitments to BBB to arbitrate or mediate disputes and comply with arbitrator decisions or mediated settlements
• Whether BBB has sufficient background information and clear understanding of business
• Whether the business is a BBB Accredited Business
• Whether BBB Accreditation was revoked because the business failed to comply with agreed BBB standards

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We are a debt settlement company that has had a poor rating with the BBB for years although we have thousands of customers and only 2 complaints. When we threatened the BBB with exposing this atrocity they verbally warned us that they would put a consumer warning about us on the BBB’s website.

This poor grade has cost us close to 1 million dollars in revenue due to a poor rating.

I am glad to see the work you have done here.