Our earlier
examination of TrustLink revealed a sense of desperation at the BBB
behind their move into the internet-based, reader comment and review
business. Obviously, the Better Business Bureau has been feeling
the economic pinch as more and more businesses have declined to renew
their memberships. Additionally, as minutes of the BOC revealed,
the BBB has also been feeling the competition from internet review
sites like Yelp.com, Angieslist.com, etc. Finally, the BBB
acknowledged that the Better Business Bureau is a "negative" site; it
only allows for complaints and in order to provide a full picture of a
business positive reviews are of benefit to the consumer. So,
with much gnashing of teeth, turning a blind-eye to the conflict of
interest inherent in a group of local BBB offices running a for-profit,
competitive website that is aided and abetted by the "not for profit"
BBB infrastructure, the CBBB authorized the TrustLink venture.
In a scenario that has become revoltingly familiar, the Better Business
Bureau of Los Angeles, and through their other creation, TrustLink
deems themselves worthy of playing God. Rules don't apply to
them, even their own standards are consistently thrown overboard in
order to further personal agendas.
Consider the case of Mortgage Restructuring Solutions, Inc. that
recently came to light. Like many other financial "help" services
such as debt restructuring and loan modification services, Mortgage
Restructuring Solutions had earned a decent grade with the Better
Business Bureau until recently. As recently as March of 2010,
Mortgage
Restructuring Solutions, Inc. had earned a B+ grade from the LA
BBB. A month later, their grade plummeted to an
F. At issue were several complaints filed with the LA
BBB against Mortgage Restructuring Solutions. Mortgage
Restructuring Solutions is adamant that the complaining parties were
not, and had never been, clients of theirs so the complaints were not
valid.
NOTE: There is a massive
pattern of bogus complaints being filed against companies on the BBB
web site, whether by actual customers who got confused about the
company they were complaining about, or by libelous competitors who
are playing the BBB game for all it's worth. There are also numerous, and documented,
instances where the BBB would never notify a company of a complaint, or
have software glitches that prevented a company from responding to a
complaint. Both of these can and will result in the company
receiving an F grade from the BBB for three years.
CONFLICT OF INTEREST: CLEAR AND SIMPLE.
Let's take a look at the interesting
relationship between Clearpoint Financial Solutions and the Better
Business Bureau. Everything you need to know is contained on page
six of Clearpoint Financial Solutions Annual Report.
As they say themselves, Clearpoint Financial Solutions is in the
business of cleaning up consumers' credit scores and helping them repay
their debts. In other words, they're just a different side of the
coin from debt resettlement firms, loan modification companies, credit
repair firms. But what a difference their side of the coin
is. First, they get preferential treatment from the Better
Business Bureau. Wonders of wonders, they enjoy an A+ grade with
the BBB. Meanwhile, their competition in the consumer
credit industry are awarded D and F grades because of the TYPE OF
BUSINESS they are in. (Apparently, one side of the same coin is a
worthy business model while all other sides of the same coin are
regarded as scams.)
If we look at the graphic, above and right, we notice that Clearpoint
Financial Solutions is clearly a front for the credit card industry
with grant funding coming from American Express, Bank of America, Citi
Cards, Discover Financial Services and others.
Here's how the scenario plays out. A consumer in need of credit
help looks to the BBB for help. After some searching this
consumer finds that the only "reputable" (according to the BBB) credit
help comes from Clearpoint Financial Solutions. Note how consumer
money makes up almost 50% of Clearpoint Financial Solutions
revenues. That certainly has the stench of conflict of interest
and restraint of trade hovering all over it.
What is missing from the annual statement is how much renumeration the
BBB receives for pimping out their reputation.
Back to the case of Mortgage
Restructuring Solutions, Inc. Harvey Garte, the company's
CEO engaged in a lengthy, and futile, email correspondence with the LA
BBB. In an early email, Harvey had questioned the validity of
several complaints (as mentioned in the beginning of this story) and
wondered what could be done to improve things. Here's the BBB
response. It is noteworthy in two things (see highlighted
comments): 1) It admits that complaints are taken at face value.
IN OTHER WORDS, THE BBB DOES NOT TRY TO ASCERTAIN THE TRUTH, EVEN
THOUGH THEIR MOTTO IS START WITH TRUTH. 2) Harvey is
invited to encourage his customers to post positive reviews on
TrustLink as a way of promoting the results he achieved for his
customers.
As a result of the above email, and per the suggestion of the LA BBB,
Harvey encouraged satisfied customers to post positive reviews of his
company's services on TrustLink. They did. The Better
Business Bureau then promptly removed a number of these positive
reviews. Here's the email explaining their reasoning.
As you can see, while the BBB does not see fit to review complaints
(remember, complaints are taken at face value), they apparently review
positive reviews for authenticity and can somehow divine whether they
are real or not.
What the BBB did not realize was that they were falling right into the
web of a sting operation. Harvey Garte, CEO of Mortgage
Restructuring Solutions, Inc. provided me with contact information on
five customers who he knew were ready to post positive reviews. I
have
corresponded, either by email or phone, with these customers and have
satisfied myself they are legitimate customers who were indeed helped
out by the services of Mortgage Restructuring Solutions,
Inc. These five people then posted one positive review each
about the services they received from Mortgage Restructuring Solutions,
Inc. Virtually overnight, Mr. Gary Almond of the Los
Angeles BBB determined through some psychic power it appears, that
these were bogus reviews and removed them from the TrustLink
website. As is often the case, when someone like Mr. Almond
assumes something (rather than taking a few minutes to call or email
the reviewers to ascertain their legitimacy), in this case the validity
of positive reviews, they end up making an ASS out of themselves.
MORAL TO THE STORY
We've learned that TrustLink is rigged. Yes, we've only fully
documented
this one instance to date, but we really haven't been looking.
Common sense says that there are more instances of rigging of votes
going on with TrustLink. We already have documented instances of
complaint rigging at the Better Business Bureau, so this should come as
no surprise.
We've also learned that when it comes to things financial, the Better
Business Bureau is biased, and has a clear conflict of interest in
reporting things accurately. They are the last place you should
look for financial advice of any kind.
We've witnessed on more than one occasion, how the LA BBB allows
personality conflicts to stand in the way of objective grading of
businesses. The BBB has an ax to grind, and the financial
incentive to do so.
I cannot endorse Mortgage Restructuring Solutions, Inc. Nor can I
condemn it. I don't
own a house. I have no need to have a mortgage restructured, nor
do I know anyone who is in that situation. I have not used
their services. At the same time, I have talked to several
satisfied clients of theirs. They seem very happy with their
restructured mortgages. I've talked to Harvey. He seems
like a nice guy. The same cannot be said of Mr. Mitchell or Mr.
Almond of the LA BBB.
What I can say with zero misgivings, is that the LA BBB's grading
system, and the grades it spits out, are not worth the pixels they take
up. They are biased, and have no relevance to the consumer (or
the business they are supposedly grading).
With that in mind, I offer the following advice if you find yourself
sliding towards foreclosure because of ballooning mortgage prices or
falling equity in your home:
1) To do nothing is not smart. The earlier you start
investigating your options, the earlier you can get out from under.
2) There is no one-size fits all solution. Everyone's situation
is different. There are many factors that determine what the best
solution for YOU is. Talk to people.
3) Especially with money matters, the golden rule of "If it's too good
to be true, then in probably is" is correct.
4) The Better Business Bureau grades for companies involved in
financial solutions to credit, debt, mortgages etc. are TOTALLY
MEANINGLESS. Don't waste your time. This is truly
unfortunate, because these are the very consumers the BBB could be
helping the most IF THEIR GRADES HAD ANY INTEGRITY AT ALL.
5) Do your homework. If it involves money, sleep on your decision
before signing anything.
|
