Grant scam satisfaction

December 20, 2009 6:19 PM

How should I attempt to get satisfaction (ideally, a refund) from a scammy "grant" company?

My mom was searching for grant information and was contacted by a company called United Economic Agency. She was told that for $375, they would hook her up with a grant ("pretty much guaranteed"), so she let them withdraw the $375 from her account with the promise that if she didn't get a grant, all but $50 would be refunded.

I know, it smells like scam right off the bat. But she was hopeful and did talk to some people on the phone and they had a website, so she trusted them. She's obviously naïve about things like this.

Now it's several months later and I am checking the BBB's website and surprise, surprise they have a score of F. Apparently the physical address on file for the business doesn't even exist and BBB has tried to resolve some complaints, but has not had a lot of luck.

I've seen consumer help articles in AARP or Costco's magazine or somewhere where someone goes after places that rip you off, but I don't know how/if I should start that process. If the BBB can't get any satisfaction, what are the chances someone else can? Do we just chalk this up to a lesson learned?

My mom has put her entire 401(k) into our business (a restaurant) and this $375 she's out for this scam is just like shit icing on the shit cake. What steps do we need to take to at least make sure they don't get any more money from her since she's already given them her bank info, short of closing the account which would be a hassle but ultimately worth it, I guess?

posted by hulahulagirl to work & money (3 answers total)

This is a $375 lesson for your mother, most likely.

However, if you live in the US, your state's Attorney General or Secretary of State may have a Consumer Affairs department that could help.

As to the bank account: call the bank first thing on Monday and see whether they recommend closing the account or some other solution (sometimes a bank will change account numbers in cases of fraud, but that varies bank to bank).
posted by Sidhedevil at 6:28 PM on December 20, 2009

And until the bank does whatever they're going to do to prevent further fraudulent withdrawals, have your mother move into another account, all but the minimum balance required to keep the checking account open (plus enough to cover outstanding checks, of course).
posted by TruncatedTiller at 6:30 AM on December 21, 2009

She'll probably have better luck fighting this through her bank or credit card company than through the non-existent scam company. Dispute the charge as fraudulent.
posted by Jacqueline at 6:34 PM on December 22, 2009