BBB Board News
2008 will bring lots of positive changes, increased visibility and member services here at the BBB. Change gives us an opportunity to add new people with fresh perspectives and new ideas. At this time of the year the terms of many of our Board members end and new members are added. On behalf of the Better Business Bureau serving Greater Iowa, Quad Cities and the Siouxland Region we give a sincere thank you to those Board participants who are leaving and a warm welcome to those commencing service with the Bureau. Our appreciation is extended to outgoing Board Chair, Grant Bell of Bell Brothers Heating and Air Conditioning. The leadership demonstrated by Grant during his chairmanship has been a tremendous asset to our organization. Other departing individual Board members who have made significant contributions over the past several years are Brad Brody, Mary Bussone, Bob Krohn, Michael Toulsey, Paul Tyler, David Sinnwell and Joyce Hoffman. Thank you for your time, effort and dedication. It is with great pleasure that we welcome Robert Lawler as incoming Board Chair. After many years of service as a valued Board member Bob now takes office as the 2008 Chair. A 16 year veteran of Wells Fargo, Bob is Senior Vice President and Manger of Business Banking Production Group of Wells Fargo and Company. Bob is a graduate of Loras College in Dubuque, Iowa holding a Bachelor’s degree in Accounting. He lives in Des Moines with his wife and 4 children.
February 2008
Robert M. Lawler, 2008 Board Chair
We are also pleased to announce that the following individuals have been named as Directors to serve 3 year terms on the Board. We welcome: Steve McGoldrick, MCG Financial; Beth Schelske, ITA Group; Glenda Durst, Weitz Company; Bruce Sherman, Pomerantz Diversified Services; Suzann Simon, Simon Tire and Auto Service; Frank Maher, Integer; Kevin Tiffany, Direct Marketing Associates; Tim Davis, Dahl’s and Beth Tacey, Modern Woodman of America-Quad Cities. Thank you to everyone for their continued support of the values and mission of the Better Business Bureau.
President’s Column: It is time to learn about Credit Scores again!
One of the catchiest commercials of this winter is the one in which the waiter at a Pirate restaurant is singing about checking your credit report for free. I catch myself hoping it comes on simply for the entertainment value of it. I think if it had been released as single, it would be on the Weekly Top 40. But the promotion of this and other services is important as we get into 2008, because the way consumer credit scores are calculated will be changing soon. And this is important for yourself and your family – as well as many businesses, as they are beginning to check credit information on customers and potential customers. In early spring, The Fair Isaac Corp. – creator of the FICO score – will be unveiling a new scoring model for determining credit scores, dubbed FICO 08. While the Fair Isaac Corp. is keeping their methodology for determining credit scores under wraps, Better Business Bureau (BBB) is offering a few details and advising consumers on how FICO 08 could affect them in ways they may not have imagined. FICO scores – which range from 300 to 850, with higher scores being better – are based on consumers’ credit histories and reveal their risk for defaulting on loans. A good credit score is anything higher than 700. Average FICO
scores for U.S. consumers are around 690. More than 90 percent of the 100 largest banks rely on FICO scores in determining both who they will lend to, and at what rate. Not only can a low FICO score keep consumers from getting loans to buy a house or car, but many landlords, utilities services, and employers rely on the score as well. This means that a bad score can keep people from getting a good rate on insurance, an apartment, or even a job. The Fair Isaac Corp. explains that the new method is more forgiving of minor slip-ups and will more accurately predict a borrower’s risk of defaulting on loans. The good news it that the Fair Isaac Corp. predicts that more people will see their score increase than decrease. FICO 08 will still take into consideration the same factors of a person’s financial history including indebtedness, length of credit history, and number of open lines of credit. The difference with FICO 08 is the weight these factors will carry. The Fair Isaac Corp. explains that two people with the same score today could have completely divergent scores under FICO 08. Your FICO Score Might Go Up If… You maintain various lines of credit, such as credit cards, a car loan, and a home loan, because it demonstrates your ability to successfully manage different types of loans. You will also be penalized less if you are delinquent in one account, but are in good standing in others. Your FICO Score Might Go Down If… You have many delinquent accounts. While a delinquent account has always had a negative effect on your score, persons with more than one delinquent account may see their score slip even more. No More Piggybacking BBB notes that piggybacking has become a popular way for people with no credit or bad credit to increase their credit score. Piggybacking involves being added as an authorized user to an account maintained by a person with good credit. Often, parents will make their child a joint user of their credit card which helps the child build a credit history. In order to discourage this practice, when determining credit scores, FICO 08 will not consider accounts where the consumer is only an authorized user. Parents can still make their child an authorized user of a credit card, but the child’s own FICO score will not be affected. BBB encourages consumers to request a free credit report once every 12 months, and people can do so at: www.annualcreditreport.com. Consumers can get a free report from each of the nationwide consumer credit reporting companies: Equifax, Experian and TransUnion. Obtaining an actual credit score may cost consumers a few dollars, but for those who don’t know or are concerned about their credit score, the cost is minimal compared to the cost of not getting a loan, paying higher interest rates, or not being considered for a new job. Chris Coleman
Scam Alert: Money Laundering Scheme
There was a recent TV program showing foreign internet cafés filled with people perpetuating scams via email and cell phone calls. A consumer recently forwarded a long letter detailing a tempting scam offer promising a big return for “money transferring.” It reads: I am Engineer Phillip Mthobeni, Director of Project, South African Ministry of Minerals and Energy Resources. I am making this contract with you based on the committee’s need for an individual or company who is willing to assist us with a solution to a money transfer. First and foremost, I apologize for using this medium to reach you for a business transaction of this magnitude, but this is due to confidentiality and prompt access reposed on this medium. In unfolding this proposal, I want to count on you, as a respected and honest person to handle this transaction with sincerity, trust and confidentiality. I have decided to seek a confidential cooperation with you in the execution of the deal described hereunder for the benefit of all parties and hope you will keep it as a top secret because of the nature of this transaction. My colleagues and I used our official position to influence the award of a contract to a foreign company based on a gentleman agreement that a certain percentage of the total contract value will be to given to us. The foreign contracting firm has executed the contract amount paid less US$20,500,000.00. Which represent the percentage
which we agreed should be given to us since the present Government is determined to pay foreign contractors all debts owned, so as to maintain good relationships with foreign governments and non –government agencies; we intend to include our bills for approvals with the Department of Finance. We are seeking your assistance to enable us to claim the money since as civil servants we are not allowed to operate foreign accounts. Details shall be worked out in line with this to claim the money without the slightest problem. I have authority of my partners involved to propose that should you be willing to assist us in this transaction your share as compensation will be $5.123m. The business is completely safe and secure, provided you treat it with utmost confidentiality. We have reposed confidence in you and hope that you will not disappoint us. Endeavor to send secured telephone and fax numbers for details upon your acceptance of this proposal.
National Consumer Protection Week
The 10th annual National Consumer Protection Week (NCPW), week to highlight consumer protection and education efforts across the country, will take place from March 2 to March 8, 2008. This year’s theme, “Financial Literacy, A Sound Investment” encourages consumers to take steps to build a firm financial foundation. During NCPW, federal, state and local government agencies and national advocacy organizations committed to consumer protection will raise awareness of the importance of financial education and literacy. An outreach tool kit and other free resources will be available to help empower consumers with information on how to manage their money, use credit wisely and avoid scams and rip-offs. Visit www.consumer.gov/ncpw for more information about NCPW. NCPW is sponsored by the FTC, Federal Citizens Information Center, U.S. Postal Service, the FCC, FDIC, Office of the Comptroller of Currency, National Association of Consumer Agency Administrators, the National Consumers League, AARP, Call for Action, Consumer Federation of America, National Association of Attorneys General and the Better Business Bureau(BBB).
Ad Reviews
Advertising Review promotes truth in advertising to enhance consumer confidence in businesses that advertise. Following are cases that represent recent advertising review matters your BBB pursued. Challenges made by the BBB, using the BBB Code of Advertising, result from information given by consumers, competitors and through the BBB’s own monitoring efforts. The fact that a particular business responds to a BBB challenge is a compliment to their willingness to cooperate with the BBB’s self-regulatory process and not to be taken as an admission of impropriety on any advertiser’s part. Shorewood RV Center, Des Moines, IA Challenge: “…Up To 40%...” Response: Company agreed to modify future ads Home Furniture of Ames, Ames, IA Challenge: “Lowest Ekornes Floor Model Prices Ever.” Response: Company stated the ad was discontinued Carpet One, Spirit Lake, IA Challenge: “Save Up To 40%.” Response: Company did not respond Laporte Road Memorial, Waterloo, IA Challenge: “Save Up To 40%.” Response: Company did not respond Frederick Furniture Inc, Grundy Center, IA Challenge: “12 Months NO Interest.” Response: Company states the ad was discontinued Hotopp Jewelry & Gifts, Le Mars, IA Challenge: “Register To Win A $50 Gift Certificate.” Response: Company did not respond
The Better Business Bureau publishes a pamphlet titled Code of Advertising. These basic advertising standards are issued for the guidance of advertisers, advertising agencies and advertising media. Adherence to the provisions of this Code will be a significant contribution toward effective self-regulation in the public interest. It is not possible to cover fully the wide variety of advertising practices by specific standards in a code of this type which is designed to apply to the offering of all goods and services. Where the Better Business Bureau has developed specific industry advertising codes, it is recommended that industry members adhere to them. If specific questions arise which are not covered or involve advertising directed to children, it is recommended that Do's and Don'ts in Advertising (a comprehensive two volume loose- leaf compendium published by the Council of Better Business Bureaus) be consulted. Advertisers, agencies and media should also be sure that they are in compliance with local, state and federal laws and regulations governing advertising.
New Members
ACKLEY Ackley Publishing Printers ADEL Commercial Interiors Contractors-General ALTOONA K & K Homes Home Builders Miller Trucking Trucking-Dump Paramount Electric Electric Contractors AMES Ames Lawn & Landscape Landscape Contractors ANKENY G & M Electrical & Mechanical Contractors Electric Contractors Snap Sports Iowa Sporting Goods-Retail BEDFORD Perfection Plus Auto Body Auto Body Repair & Painting Southwest Supply Auto Parts/Supplies CAMBRIDGE Precision Underground Utilities Utility Contractors CEDAR RAPIDS Central Security and Investigations Security Guard & Patrol Service Creative Matters Real Estate Consultants CLIVE Ferg's Garage Auto Repair & Service Ice Truck & Auto Works Vehicle Accessories-Trim, Upholstery Perfect Events Wedding Consultants Quail Valley Homes Home Builders DECORAH L B Masonry Mason Contractors New Horizon Entrepreneur Center Business Consultants
DES MOINES Best Heating, Cooling & Electric Heating & Air Conditioning Hawkeye Motel Motels IowaComputerGurus Computer Software Publishers & Developers Tarpey Media Group Advertising/Marketing Agencies DUBUQUE Above All Exteriors Construction & Remodeling Services Neighborhood Quality Lawn Services Lawn Maintenance Reliable Technology Computers-Dealers & Sales ELDORA A & E Collision Specialists Auto Body Repair & Painting ELK RUN HEIGHTS Paine's RV Sales & Service Trailers-Camping & Travel EVANSDALE Evansdale Tax Service Tax Return Preparation FERTILE Plastic Injection Molders Plastics-Molders GREENFIELD Southern Iowa Vending Vending Machines True Value Hardware & Rental Hardware-Retail GRIMES Grimes Automotive Auto Repair & Service GUTHRIE CENTER Field Equipment Mechanics Farm Equipment-Repair & Parts HAMPTON Franklin County Lumber Building Materials INDEPENDENCE East Iowa Plastics Plastics-Vacuum, Pressure, Thermoform IOWA CITY C L B Planning & Design Drafting Services
JANESVILLE Alderman Construction Home Builders Dave Beenblossom Construction Construction & Remodeling Services JESUP Bell Tile & Design Floor Covering Sales/Installation LA PORTE CITY Buckshot Repair Trailers-Repair & Service MARSHALLTOWN Gealow Construction Concrete Contractors Randall Construction Contractors-General Ultimate Web Design Internet Web Design MASONVILLE Eastern Iowa Welding Service Welding MOUNT VERNON Office Expressions Office Supplies NEW HAMPTON On-Track Door Overhead Garage Doors NEWTON Ken's Electric Electric Contractors PARKERSBURG The Print Place Printers PLAINFIELD Mills Home Improvement Home Improvements ROCK ISLAND Steele Real Estate & Development Real Estate Developers ROCKFORD Superior Woodworking Cabinet Makers
SIOUX CITY Pro-Link Realty Real Estate SPIRIT LAKE Gene Krueger Construction Contractors-General STORY CITY Story City RV Recreational Vehicles-Dealers SUMNER EchoVision Computers-Dealers & Sales URBANDALE Webspec Design Web Hosting WATERLOO Beaver Valley Landscapes Landscape Contractors Hoffman & Hoffman Trenching Excavating Contractors John's Autobody Auto Body Repair & Painting Kugco Contractors-General Lane Drywall Construction Contractors-Drywall / Plastering Organized for You! Organizing Services-Household & Business WAVERLY Rogers Manufacturing Machine Shops WEBSTER CITY Webster City RV Recreational Vehicles-Dealers WEST DES MOINES McCabe Contracting Construction & Remodeling Services Select Van & Storage Moving / Storage Companies WINTHROP Wieland & Sons Lumber Lumber-Retail
Happy Anniversary
25 - 49 Years AAMCO Transmissions American Perfection Basement Waterproofing Charlie Zook Motors City Wide Heating & Air Conditioning Flightags Flynn/Wright Guarantee Oil Gunderson’s Jewelry Morrisseys Fine Jewelry
(25 - 49 Years Continued) Safety Systems Wooldridge Insurance Wright Tree Service 10 - 24 Years Abbey Carpet Gallery B & W Home Improvement & Construction Balzers Clean All Coleman/Quiner Ltd Expressions Ltd Fluent Chiropractic Clinic GELITA USA Hecks Transfer Hometown Plumbing and Heating Hornbuckle Heating & Air Conditioning Hull Enterprises Johnson Controls Ledford Engineering Lite Form Metro Waste Authority Mickle Electric & Heating NetWorks Office Installation Services Perficut Lawn & Landscape Prairie Pella Richard Bokemper DDS PC Snider’s West Kimberly Successful Resource Management The Weitz Company Three Rivers Benefit Corporation Collision Repair Center I C System Miracle Ear Center 5 - 9 Years 72 Degrees Heating & Cooling A + Lawn & Landscape A J’s Heating & Cooling AWS - Bettendorf American Billboard Entertainment Services Ankeny Pet Salon Best Builders Bridges Catering Cedar Rapids Hearing Center Chappell Studio Classic Designs Dean Paulsen & Sons Contractors Gibbs Plumbing Heating & Cooling Greiner Post Frame Buildings Hintermeister Electric Iowa Telecom MediNotes Mississippi Valley Regional Blood Center Nationwide Advantage Mortgage netINS Point Builders QCI Quad City Door R J Lawn Service Schwartz Construction
Slaydens Auto & Truck Repair Supreme Staffing The Starken Group 1 - 4 Years Absolute Waste Removal 801 Eye Care Center A & J Dry Wall AT & T Mobility Advanced Air Heating & Air Conditioning Allen Blasting & Coating Altoona Auto Body Anamosa Furniture Mart Anemometry Specialists Audio Service Specialists B & B Drain Tech Bennett Painting & Decorating Bix Services Bobst Construction Service Brecht Construction Brittain & Son Concrete Construction Broadway Dental Byron Hills Golf Course Carpentry by Chris Central Iowa Builders Central Iowa Fasteners Circus Creations Unlimited D & R Custom Kitchens Dalaco Davison Siding & Windows De Bour Electric De Paepe’s World Class Fitness Denman & Company Dragotec USA Energy Doctor Essential Mortgage Event Decorators of Iowa Federal Upholstering Fish Landscaping Floors Etc Formalities G & S Office Machines Green Building Supply Green Gables Marina Greenscape Turf & Design Hawkeye Auto Credit Heartland Custom Woodworking Home Builders Association In Depth Center Iowa Hearing Aid Center J R’s Home Repair Jellema Transportation John Wulf’s Septic Tank Service John’s Equipment Sales KB Mobile Repair KCAU-TV Channel 9 Kelly Concrete Lake Lumber Lakes Lawn Le Claire Auto Service Lisa’s Custom Photography Lowden Plumbing & Heating
(1 – 4 Years Continued) Lumber Liquidators Martz Auto & Truck Repair McCartan Insurance Group McLaughlin Freight Services McNair Geothermal Well Drilling Medicap Pharmacy Mehmen Builders Midwest Exhibits Design Group Mike’s Electronics Moore Bros Painting Muscatine Tax Service Nemecek Electric Net-Integrated Consulting O’Halloran International Osborn & Barr Communications Patriot Motors Patriot Propane Professional House Doctors Raynor Door Co Inc of the Quad Cities Reliable Network Solutions Rubel Roofing & Construction S & K Packaging Safety Made Simple
Scott Hoag Photography Scott’s Auto Glass Secure Shed Solutions Smith Funeral Home Solid Fabrications Sterk’s Diesel and Pickup Specialist T & S Industries TBC Insurance TK Concrete Terminix The GM Giant The Plummer TourneyTime.com Tribolet Financial Services Tyler Pharmacy United Fence & Gate Vein Centers for Excellence of Des Moines VisionPoint Productions Wheelchair Dynamics Whole Excavation Wildrose Valley Kennels World of Windows and Siding YMCA of Greater Des Moines
BBB Integrity Awards
The Better Business Bureau is committed to exemplifying and improving standards of conduct in the marketplace and recognizes businesses that model these practices through the BBB Integrity Awards program. The applications are in and the important job of our judges has begun. Thank you to all of the many applicants and to our panel of judges for their hard work. Your invitation will be mailed soon. Plan to join us! The Greater Iowa Awards luncheon and ceremony will take place on Thursday, April 10, 2008 at the Marriott in downtown Des Moines. The Quad Cities area event will take place Friday, April 25, 2008 at the Bettendorf Holiday Inn. Guest speaker at each event will be Maureen Korte whose presentation is titled, The Story of Integrity.
Principles for Trust
Start With Trust Establish and maintain a positive track record in the marketplace. Advertise Honestly Adhere to established standards of advertising and selling. Tell the Truth Reveal all related conditions or exceptions regarding products or services offered. Be Transparent Openly identify the nature, location, and ownership of the business, and clearly disclose all policies, guarantees and procedures that bear on a customer’s decision to buy. Honor Promises Abide by all written and verbal agreements. Be Responsive Address marketplace disputes quickly, respectfully, and reasonably. Embody Integrity Approach all business dealings, marketplace transactions and commitments with integrity.