Double Talk

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Los Angeles County has more than 466,000 minority-owned businesses, the most of any county in the United States. Given the rich ethnicity of our region, you can bet someone is turning the language barrier into a profit center. At the Better Business Bureau, our files are brimming with complaints against vendors that take advantage of proprietors whose first language isn’t English.

The postrecession uptick in small-business growth has translated into more first-time business owners, many of whom are prime targets for fraudsters. Their plates are overflowing, and they’re understandably attracted to offers like “streamlined solutions,” “one-stop procurement” and “trusted partner.”

The smell of money changing hands attracts shady opportunists like flies to honey; they will stop at nothing to siphon off some of that stream. For example, there are some companies that peddle credit card services with a heavy hand, promising big savings but failing to deliver – even draining bank accounts and putting owners in financial peril.

The practice provides a perfect case study of false and misleading tactics that warrant careful scrutiny. Acting with no regard for accountability, sales reps overwhelm prospects with miscommunication and deception, preying on people who just want someone to help them with mundane yet critical processes – like swiping credit cards:

You can’t talk right now? No problem, the rep will wait in your store – sometimes for hours – until you give in.

The rep doesn’t go over your contract with you or get your signature.

You can’t get out of your contract.

Try to get an answer from someone at the company and you get the runaround.

Your card machine malfunctions and the money never reaches your bank account, yet they’re quick to withdraw their monthly service fee.

These scenarios are all too common, and many are reported to us by business owners who believe they’re being taken advantage of because of their difficulty with English. After all, it’s hard enough to read the fine print when one has a solid command of the language.

There are several companies with similar names using the same strategy. Usually a merchant is asked to sign two contracts: one with the company providing the card-processing services and one with the company that leases the equipment. While they can sometimes get out of the service agreement, they find themselves locked into the equipment lease with no recourse.

One L.A. company named Merchant Processing Solutions has responded to only 11 of the 170 complaints filed with the BBB, earning it an “F” rating. We have made four separate attempts to contact the company with our concerns about the pattern of complaints, yet they refuse to reply.

Legal action has elicited modest results. In New York state, the equipment-leasing companies agreed to refund $3.6 million to businesses and change some of their practices; in Vermont, Merchant Processing Solutions struck a restitution agreement with the attorney general; and an affiliate of Lease Finance Group faces a class-action lawsuit in federal court in Oakland.

The individual’s best defense is vigilance, and there are steps business owners can take before committing to questionable agreements that cause more headaches rather than reduce them.

Lure with a promise of savings: When a vendor promises free equipment or services, better rates than your current vendor or comparable with those enjoyed by large retailers such as Target, ask more questions. Get references. Talk to existing customers to find out the terms of their credit card processing.

Lack of contract transparency: When you can’t get a straight answer, when you think they’re hiding something or they make changes without your consent, make sure you read the fine print. Some of these contracts bind you to a set time frame or commitment with no exit clause. Have your attorney review the contract before you sign.

Predatory tactics and high-pressure sales: When you feel the pressure, just say no. Repeat it until they get the message and back off.

Poor communication, no accountability: When you can’t reach someone or get a straight answer, contact the BBB because we have proven methods for investigating and resolving complaints, plus deep experience assisting law enforcement in securing prosecutions. 

Fraudulent handling of funds: The second you suspect someone is mishandling your bank account, contact your bank and request a stop payment.

There are many reputable businesses offering card processing under similar names, so it’s important to check first and make sure of the name of the company you’re dealing with and that it has a good track record of responding to complaints. Search for businesses and read our reviews at our website (bbb.org/search).

Language doesn’t have to be a barrier either because we have staff fluent in Spanish, Mandarin, Vietnamese, German and Portuguese. As we say at the BBB, “Start with trust.”

Steve McFarland is president and chief executive of the Better Business Bureau Serving Los Angeles.

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