Source:  Business Wire / Find Articles.com
Date:  Oct. 3, 2003

IRVINE, Calif.–(BUSINESS WIRE)–Oct. 3, 2003

The National Consumer Council announced that it has filed a suit against William G. Mitchell and the Better Business Bureau of the Southland seeking damages in excess of $20 million. The suit alleges that Mitchell, the President of the Southland BBBS, which is a private, nonprofit, non-governmental, self-regulatory organization, has demonstrated unfair practices by using personal conflict of interest to fuel the company’s “reliability reports.”

In a civil complaint filed Monday, the NCC alleges that Mitchell and the BBBS have attacked the NCC in an improper and unlawful effort to halt the NCC’s success in championing the cause of consumers in the consumer debt industry.

The complaint explains that Mitchell’s attacks are part of a larger, wholesale plan to destroy organizations that promote debt negotiation as a viable option for eliminating consumer debt. Mitchell is accused of failing to disclose the extraordinarily close relationship between the BBBS and Springboard, a consumer credit counseling service organization (CCCS) that apparently is hostile to the NCC, and of which Mitchell is a board member.

The complaint explains that the NCC made extraordinary efforts to satisfy Mitchell and the BBBS, including engaging in extensive communications and meetings with Mitchell and the BBBS, as well as providing volumes of documentary evidence directly to Mitchell. The complaint notes that this evidence demonstrates that the Reliability Report published by the BBBS about the NCC was erroneous, because it failed to consider the fact that the NCC delivers a surfeit of free services to the public.

NCC spokespersons say they were compelled to file suit “because Mitchell and the BBBS are more concerned with protecting the CCCS industry and Mitchell’s self-interest” than the consuming public, and “because Mitchell insists on defaming the NCC so that he may advance his own interests.” The report concludes that “Mitchell and the BBBS are not who they purport to be,” explaining that Mitchell has failed to disclose to the public significant conflicts of interest, especially his intimate relationship with Springboard.

About the NCC

The NCC provides counseling and advice to consumers regarding the hazards of excessive consumer debt and the means of eliminating or minimizing the negative impact of such debt. It provides and manages educational programs with the cooperation of local and national educational institutions and governmental agencies. The NCC conducts a broad national media program to increase awareness, enlightenment and an understanding of solutions regarding consumer debt issues. The NCC supports a fully staffed telephone center of trained, certified consultants, whose sole purpose is to aid consumers who are working to emerge from debt.

Source1: Congressional Record E1550
Source2: http://bbbthetruth.com/
Date: August 2, 2001

CONCERN-REGARDING BUSINESS OWNERS AND THEIR EMPLOYEES
HON. CORRINE BROWN OF FLORIDA IN THE HOUSE OF REPRESENTATIVES

The following statements are taken in their entirety directly from the Congressional transcripts:

“Ms. BROWN of Florida: Mr. Speaker and fellow Members of Congress, I want to alert you to a matter of concern that I have regarding business owners and their employees, particularly small business owners, within our country.  This problem has been told to me by some of my constituents and is a problem about which business owners throughout the country have written to you.

We are a nation that is built upon the rule of law.  This has assured a system of accountability for our conduct as individuals, businesses and institutions.  Congress, as elected representatives, meets and acts to improve and refine the system in order to protect the people and their property.  The foundation as framed by our nation’s founders in the Constitution is the concept of due process and the right thereof. We each have the assurance that the law protects our person and property from libelous, slanderous, and otherwise tortuous interference with our reputation or business.

Unfortunately, I have learned that we have within our country a private organization that with the appearance of being quasi-governmental and without any legal or regulatory oversight and control can libel and slander and tortuously interfere with a small business. They can do so with virtual immunity. This organization is the National Better Business Bureau and their franchise local Better Business Bureaus. At times, some of these bureaus classify small business owners as unsatisfactory, libel and slander them with opinion and innuendo, and provide them no due process to correct the problem.

If sued in court, they argue qualified immunity under the guise of the public good. No one disputes the right of a Better Business Bureau to print facts. It is when they print falsehoods, opinion, or negative innuendo that a mechanism for redress or correction must be assured. When closely examined, however, one finds that there are Better Business Bureaus that arbitrarily and capriciously exclude and negatively classify those they don’t like. They also frequently rate companies with terrible records as being satisfactory. No written guidelines or rules are available that require the Better Business Bureau to adhere to any legal standard in their dealings with business. (With the internet, the conduct of one local Better Business Bureau is then taken as true and disseminated everywhere.)

The Better Business Bureaus also charge money for these reports. They make money without responsibility for how they make it.   Why are they above the law and other businesses? On a first-hand basis, I recently inquired of the National Better Business Bureau regarding the process and I was met with hostility and rebuke.
Prominent members of my community who tried to ascertain information about how to redress a concern with a local Better Business Bureau were hung up on by senior ranking National Better Business Bureau employees.

The process I have described is not in the public’s best interest.  It is not appropriate for us to allow our business owners and their employees, the men and women who make our country strong, to be exposed to this arbitrary and capricious process.  A right to redress the actions of the Better Business Bureau when libelous, slanderous, arbitrary, or capricious action is apparent is a fundamental right we must insure.”

As of January 25, 2009, Look How The BBB of Metro Atlanta gives an “A” and “A+” to Dan & Barbara Jape’s “Reliables” (Reliable Heating & Air Conditioning, LLC) even though the BBB knows, or should have known, of their many problems!

Is it because they have paid the BBB a lot of money?

Here is what the BBB says about the “Reliables” (click on images to enlarge):


To add insult to this A+ BBB Rating, we noticed this posting on the web (Click on picture to enlarge):

Reliable Heating and Air Web Comment

Upon further investigation, we found a slew of troubling information that would indicate this BBB member, Reliable Heating and Air & owner Dan Jape, have no business having an A+ Rating with the BBB.

Business Problem History of Reliable Heating & Air and Owner Dan Jape:

1.) The problems start in 1989 when a supplier files suit for debts owed and takes a default judgment against Dan and Barbara Jape dba Reliable Heating and Air. Page 1, Page 2

2.) In March 1990, Dan and Barbara Jape dba Reliable Heating and Air and dba Jape Air, Inc. file for Chapter 13 bankruptcy. Page 1

3.) In the bankruptcy filing, the Japes claim Dan works as an employee for Reliable Services and that his mother Betty Jape owns the company. Page 1

4.) In this same bankruptcy filing, the Japes claim Jape Air, Inc. was dissolved in March of 1990 but was operated as a dba of Reliable Heating & Air and was also owned by Betty Jape. Page 1 Page 2

5.) The total debts in this bankruptcy were $160,668. Page 1 Page 2 Page 3 Page 4 Page 5

6.) In late 1993, the bankruptcy trustee states the Japes have failed to make payments and recommends dismissal of their bankruptcy protection. Page 1

7.) The judge agrees and dismisses their bankruptcy. Page 1

8.) In May of 1994, just six months after their last dismissal, the Japes file bankruptcy again and the IRS files a claim for $101,466. Page 1

9.) The next day Bank South files a claim for $54,507. Page 1

10.) The Japes file a court document stating Daniel Jape was formerly known as Jape Air, Inc. and Reliance Heating and Air. Page 1

11.) In this same document, the Japes claim Reliable Services Company is owned by “Debtors Mother”. Page 1

12.) In March 1996, the trustee files a request to dismiss the bankruptcy because no payments are being made. Page 1

13.) The judge dismisses the bankruptcy. Page 1

14.) In 2005, Barbara Jape files for a protective order against Dan Jape. Page 1

15.) In her affidavit for the protective order, Barbara Jape states that she has paid Dan a salary for two years just to stay away. She also mentions other acts.
Page 1 Page 2

16.) Dan Jape is served with the protective order while in jail. Page 1

17.) In the affidavit for the protective order, Barbara Jape states her belief of Dan’s criminal history. Page 1

18.) An affidavit for arrest is issued for Dan Jape for Violation of Temporary Protective Order. Page 1 Page 2

19.) An affidavit for arrest is issued for Dan Jape for Computer Theft. Page 1

20.) An affidavit for arrest is issued for Dan Jape for Burglary. Page 1

21.) An affidavit for arrest is issued for Dan Jape for Stalking. Page 1

22.) In a court filing by his attorney, Dan Jape states he is unemployed and looking for a job outside of Georgia. Page 1

23.) In late 2005, Reliable Air, Inc. files bankruptcy. The debts owed are a large amount. Page 1 Page 2 Page 3

24.) Listed in the divorce filing, the Japes have been blessed with many boats, ATV’s and motorcycles. Page 1

25.) In the divorce case, Barbara Jape requests drug testing of her husband Dan. Page 1 Page 2

26.) In an email to his wife Barbara, Dan explains the situation. Page 1

27.) In an email to his daughter, Dan explains the situation. Page 1 Page 2

28.) Dan’s daughter Elizabeth files an affidavit with the court discussing Dan’s behavior. Page 1 Page 2

29.) Robert Loebl files an affidavit discussing Dan’s behavior. Page 1

30.) David Keener files an affidavit discussing Dan’s behavior. Page 1 Page 2 Page 3

31.) Frank Infante files an affidavit discussing Dan’s behavior. Page 1

32.) Jeff Barber sends an email discussing Dan’s behavior. Page 1

33.) Tim Wray files an affidavit discussing Dan’s behavior. Page 1

34.) Anne Lawson files an affidavit discussing Dan’s behavior. Page 1 Page 2

35.) Linda Burkhoff files an affidavit discussing Dan’s behavior. Page 1

36.) In late 2006, Dan’s lawyer states he does not have much money. Page 1 Page 2

37.) In mid-2007, Dan Jape testifies that Barbara Jape’s company has done crappy work and ripping customers off. Page 1 Page 2

38.) Dan testifies with his criminal record, he can’t find work. Page 1 Page 2

39.) The court discovers a filing by Dan Jape stating he was conducting a business called Reliable Heating & Air. No mention of his mother Betty Jape. Page 1

40.) The judge starts to wonder about Betty Jape’s involvement in these businesses. Page 1

41.) The judge states Reliable Air, Inc. is insolvent and tat these various companies appear to be a shell game. Page 1 Page 2 Page 3 Page 4

42.) The judge states that after looking at the prior bankruptcies and this one, the Jape’s business “…has never really been all that successful.” Page 1 Page 2

43.) The judge states that “…this business has always been in trouble, financially.” Page 1

Here is a list of the different business names these folks have used:

• Dan and Barbara Jape dba Reliable Heating and Air
• Dan and Barbara Jape dba Jape Air, Inc.
• Jape Air, Inc.
• Reliable Services
• Reliable Services Company
• Reliable Air, Inc.

Sources:

For further information regarding the business problems of A+ BBB Member, Reliable Heating & Air, we encourage you to check our sources!

Here is the Complete List of Official Reliable Heating & Air Court Documents in .pdf format. 

Disclaimer: The information contained herein is for informational purposes only.  The information contained herein is believed accurate but is not warranted.  We encourage all interested parties to verify the information contained herein on their own.  The information contained herein was derived from public information sources, from our records, or from Reports or Complaints filed with us.

Source:  http://articles.latimes.com/
Author: DAVID LAZARUS
Email: david.lazarus@latimes.com
Date: January 21, 2009
Article Title:  Better Business Bureau grades companies on a peculiar curve

Paying the BBB to be listed as an accredited business appears to have instant benefits in the agency’s ratings.

If you check out Wolfgang Puck’s Spago restaurant on the Better Business Bureau’s website, you’ll discover that, under the organization’s new rating system, the world-famous Beverly Hills eatery merits a grade of B-minus.

Why? That’s hard to say. The online report says the bureau has received no complaints about Spago from customers and is unaware of any government actions against the restaurant.

Now check out the considerably less prominent Cafe Santorini in Pasadena. It too has prompted no complaints to the bureau and has no government actions outstanding. It gets a grade of A-plus.

One big difference: Cafe Santorini pays the bureau about $350 a year to be listed as an accredited business. Spago makes no such payments and is thus an unaccredited business.

The private, nonprofit Better Business Bureau insists there’s no “pay-for-play” component to its new rating system.

But a random search of the organization’s database of about 4 million North American companies seems to show that the roughly 400,000 accredited businesses, even those that get numerous complaints, very often receive higher grades than unaccredited companies with spotless complaint records.

“There is no guarantee that an accredited business will get an A-plus,” said Steve Cox, a spokesman for the Better Business Bureau. “But should they get an A-plus? The answer is yes if they uphold the standards we espouse in the marketplace.”

Then why do so many unaccredited businesses get significantly lower grades?

“I can’t explain that,” Cox replied. “Clearly we need to do a better job in articulating what the differences are.”

The bureau announced this month that it would change its ratings to a letter grade system from the previous “satisfactory or unsatisfactory” system.

“We wanted to get rid of any ambiguity,” Cox said. “A letter grade speaks to our degree of confidence that a business operates in a trustworthy manner. We’re talking about business integrity.”

If that’s the case, the Better Business Bureau may want to get its own house in order first.

The majority of the bureau’s funds come from selling accreditation to companies. Depending on the size of the business, accreditation costs between several hundred and several thousand dollars a year, Cox said.

Accredited businesses are expected to uphold the bureau’s standards for good conduct. In return, the companies can use the bureau’s logo in their advertising and marketing materials.

Panos Haitayan, co-owner of Cafe Santorini, said his restaurant’s A-plus rating reflects its high-quality food and service. “We earned it,” he said.

Does he think Cafe Santorini would be rated A-plus even if it were unaccredited?

“I would say so,” Haitayan said.

Nope. Cox said the highest grade an unaccredited business can get is an A. Only an accredited company — in other words, one that pays an annual fee — can receive an A-plus.

This isn’t spelled out anywhere on the bureau’s website. The site of its Los Angeles office says only that “the highest rating assigned to a company is A-plus; the lowest is F. Between those two ratings are nine others in order from higher to lower.”

A B-minus, according to the site, “may relate to length of time in business, a past problem that’s been corrected, or something else that does not cause problems for consumers.”

In Spago’s case, length of time in business wouldn’t seem to be a factor. The original restaurant above the Sunset Strip opened in 1982. (Cafe Santorini opened in 1993.) If there were any past problems or other issues associated with Spago, the bureau doesn’t name them.

Puck couldn’t be reached for comment — he’s in the process of opening yet another restaurant. But a spokeswoman said the B-minus grade was a surprise and that the company would be taking up the matter with the Better Business Bureau.

Some companies get lower grades just for being in a certain industry. Businesses deemed to be rife with scammers — overseas lotteries, for instance, or online casinos — automatically get lower grades.

The same applies for companies in what the bureau calls industries with “inherent problems,” such as payday lenders or credit-repair services.

A variety of criteria are applied to the grading of a business, Cox said, including an analysis of its advertising and the amount of background information available. He was unable to say how these criteria might be weighted in the case of companies that receive no complaints from customers.

Aside from paying annual fees, accredited companies are required to fill out a questionnaire detailing their business practices. Cox said the bureau might approve accreditation without actually visiting a company or experiencing its service firsthand.

“A visit to the organization could happen,” he said. “But it could be a telephonic process.”

An accredited business automatically receives a half-grade boost to its rating. A B-minus business, in other words, will become a B.

But in my unscientific searches of companies in a variety of service-oriented industries, I found that accredited companies almost always got A-pluses. Those that didn’t often received an A or A-minus.

Their unaccredited kin, meanwhile, often made do with a B or B-minus.

A search for accredited travel agencies in L.A. produces 15 listings. All but two are A-plus operations. One of the laggards, Southfares.com, received an A-minus after getting a single complaint from a customer, which the bureau’s site says the company resolved satisfactorily.

The other outlier, Lion of Judah Travel, received an A-minus after it “responded to and gave proper consideration to most complaints.” However, the bureau notes that “some complaints are unresolved, meaning the company failed to properly address the complaint allegations or their response was inadequate.”

Compare that with another Los Angeles agency, All American Travel, which didn’t pay for accreditation. It earned a B-minus despite never having received a single complaint.

Which would you rather do business with?

Date: April 1, 2010
By: JR Adams
Article Type: Press Release
Source: Mechanics Responds F-Team
Title: The Shocking Grading Practices of the so called “Better” Business Bureau Exposed

Firm A: 2,000 complaints. Firm B: 2,000 happy customers.
Which Firm Did BBB rate B+ and Which Firm Was Rated D-?
The Shocking Answer Will be Revealed Below…

When one firm has 2,000 complaints and another firm has 2,000 happy customers, which firm would be rated higher with the BBB? The Mechanic’s Responds Investigation Team was stunned when we recently discovered the answer so we decided to investigate further.

[Editors' note: we have taken shots of the websites and converted them to PDF in case there are changes to the website after this story hits. References in the body of the story to links that display these PDF documents refer to links listed at the end of this article]

First, we will start with Conn’s, Inc. This firm operates a retail chain throughout three states: Texas, Louisiana and Oklahoma. According to Conn’s Website, it has over 3,000 employees and 69 retail locations. (Link A – Conn’s Website)

In May of 2009, the Attorney General of Texas dropped a bomb on Conn’s and sued them for a variety of violations of Texas’ consumer protection act. The Attorney General stated that they had received over 2,000 complaints about Conn’s behavior. (Link B – Texas AG Initial) The actual complaint listed over 3,500 consumer complaints. The Mechanics Responds Investigative Team thought this was a large amount of complaints and wondered what their grade would be with the BBB. So, in May of 2009, we looked on the BBB’s website and found Conn’s had an A+ rating. Is it possible over 3,500 people complained straight to Texas Attorney General and not BBB? Is it possible that the BBB had just not gotten around to changing their grade yet?

We put this issue on the back burner and moved on to other investigations.

Then, in November of 2009, we heard that Conn’s had settled their dispute with the Texas Attorney General (Link C – Texas AG Settle) but we decided out of an abundance of caution to wait until March of 2010 to check on Conn’s new grade. This 3-month plus window would give the BBB time to fully analyze Conn’s settlement and do the right thing.

In March 2010, the Mechanics Responds Investigative Team looked on the BBB’s website for the grade on Conn’s Inc., and saw the following:

“BBB processed a total of 2,699 complaints about this company in the last 36 months, our standard reporting period. Of the total of 2,699 complaints closed in 36 months, 1,134 were closed in the last year.” (Link D – Conn’s Grade) Wow! That means from March 26, 2009 to March 26, 2010, 1,134 complaints were closed. Thus, by using simple math, 1,565 complaints were closed from March 26, 2007 to March 26, 2009. The BBB does not disclose how many occurred each year but one thing is clear: 42% of all Conn’s Inc.’s closed complaints in a three-year period occurred in the last twelve months.

Then, we looked at Conn’s BBB grade: B+. (Link D – Conn’s Grade) We thought: “Well, if that’s the case, a whole lot of businesses are going to at A and A+.”

So we looked at another retailer in Texas, Academy Sports & Outdoor. (Link E – Academy Store Numbers & Link F – Academy About Us) Academy is based in Katy, Texas, a few miles from Conn’s headquarters in Beaumont, Texas. Academy has stores in the same three state as Conn’s and also in 8 more states like Texas (79), Louisiana (13), Mississippi (2), Alabama (10), Georgia (3), Tennessee (2), Oklahoma (6), Arkansas (3), Florida (1), Missouri (1), South Carolina (2). That’s eleven states total. That’s 122 stores. Compared to Conn’s it looks like this:

Conn’s States: 3 Stores: 76 Employees: 3,000

Academy: States: 11 Stores: 122 Employees: 13,000

Surely Academy has tons of complaints and tons of consumer issues like Conn’s. Right?

The Mechanics Responds Investigative Team went to the BBB website and found this on Academy:

“BBB processed a total of 8 complaint(s) about this business in the last 36 months, our standard reporting period. Of the total 8 complaint(s) closed in the last 36 months, 1 was closed in the last 12 months.” (Link G – BBB Academy Complaints)

Once we were brought back to life and the doctor cleared us, we had a computer firm check our web browser to make sure this was correct.

One complaint in the last year? Are you freaking kidding me???

And that means 7 complaints in the previous two year period spread over 122 stores!

Whatever Academy is doing is incredible for a retail firm with 122 stores. Academy must be providing great customer service to have that few complaints. The BBB must be so very proud there are good companies like Academy out there treating the customer right. This is going to be an easy A+.

We decided to scroll up to Academy’s grade and see……..what th……&*!@$%#!

Academy has a “B-” rating from the BBB. Something is wrong!

As the paramedic put away the defibrillator paddles and we came back to life for a second time, we checked the BBB’s website again and realized we needed more computer help………..

Well the computer guy just left and in fact this is correct. Academy has a lower grade than Conn’s. Thankfully, on BBB’s Academy score sheet, the BBB lists the following devastating reasons for the lower grade:

“Based on BBB files, this business has a BBB Rating of B- on a scale from A+ to F.”

The two reasons BBB gives for this rating are: “8 complaints filed against business; BBB does not have sufficient information to determine how long this business has been operating. BBB does not have sufficient background information on this business.” (Link G – BBB Academy Complaints)

Hmmmm. Not only the 8 complaints bother the BBB but the lack of information on Academy bothers the stringent BBB analysts. Good catch by the BBB. A fly-by-night company like Academy thinks they can fly right under the radar, bop right into 11 states, quickly set up 122 retail stores and hire 11,000 folks without anyone noticing? They ain’t gonna put anything past the BBB. These vigilant folks just have no information on this company. No sir! Fair enough.

So, the Mechanic’s Investigative Team went back to look looked at Academy’s website to see if we could get some information about this under-the-radar company the BBB has no information on.

Academy’s website clearly lists under “About Us” that they have been in business since 1956! (Link F – Academy About Us)

Hmmmm. That’s 54 years. That’s not really under the radar. Was the radar even invented in 1956?

Academy’s site goes on to state they have been growing since the 1980’s. It says the company has over 13,000 employees. The website even has a separate section detailing how to reach them. (Link H – Academy Contact Us) What is the BBB doing here? This is not the fly-by-night company the BBB seems to allege in their “reason” list. What is the missing piece we are not seeing that separates Conn’s B+ from Academy’s B-?

Since we are an Investigative Team, we decided to do a search on Academy Sports and Outdoor to see if they had received the attention of any Attorney Generals and Bingo! A hit.

Yep….it appears Academy has been dealing with the Attorney General. (Link I – Code Adam Participants) Academy is on a long list of retailers working with the Attorney General to implement Code Adam which is a program from the National Center for Missing & Exploited Children. Conn’s is not on that list. That is something that is different than Conn’s.

But wait a minute. Code Adam is a good thing to help find missing and exploited kids. Surely the BBB would not rank Academy lower because of that? Let’s keep looking for that missing ingredient that one company has and the other does not.

Then we found another company that has 2,000 happy customers documented on their website with hand written letters and photographs.

http://www.airconditioningatlanta.com/Mechanic’s%20Atlanta%20HVAC%20Happy%20Customers%20Index.htm

Mechanic’s Heating and Air Conditioning, LLC has been working for years to document their happy customers. Apparently, their customers really like Mechanic’s service and expertise. Mechanic’s Heating and Air Conditioning even states that they have become “…the most trusted name in Air Conditioning, Heating and Home Comfort.” The BBB must like that because the BBB also states they “Start with Trust.”

So we searched for governmental action on Mechanic’s Heating and Air Conditioning, LLC and found nothing. Zip. Zero. Nada.

Then we checked Code Adam and guess what? Mechanic’s Heating and Air Conditioning, LLC is not on the Code Adam list. So, if that is factor the BBB considers is negative, Mechanic’s Heating and Air Conditioning, LLC will be higher than Academy for sure.

Then we went to the BBB to see what Mechanic’s Heating and Air Conditioning, LLC BBB rating is. (Link J – BBB Rating of Mechanic’s March 2010) Mechanic’s Heating and Air Conditioning, LLC has a D-.

Wow!

With over 2,000 happy, documented online customers? What’s up with this picture?

Mechanic’s gave us their rating from June, 2007 which showed Satisfactory. (Link K – BBB Rating of Mechanic’s June 2007) Then, a few months later it dropped to Unsatisfactory. We asked Mechanic’s management why this happened and they told us that the BBB had called them and asked if they were willing to pay the BBB to become an Accredited Company. According to Mechanic’s they declined to pay. Next thing they know, their rating was lowered to unsatisfactory. A coincidence?

When the BBB switched to the grading system, Mechanic’s Heating and Air Conditioning, LLC received an F.

At one point, as Mechanic’s accumulated documented happy customers online and sent email after email to the BBB telling them about these happy customers, the BBB changed Mechanic’s grade to a C. (Link L – BBB Rating of Mechanic’s February 2010). But as inexplicably as they had raised the grade, a few days later they lowered it to D-. (Link J – BBB Rating of Mechanic’s March 2010)

Atlanta BBB President - Fred Elsberry

We looked carefully at the BBB score sheet on Mechanic’s and it states Mechanic’s has had no governmental action. This confirms what we found above and this is the same thing we found with Academy. We looked at the BBB’s score sheet on Mechanic’s again to see their complaints. They number 55 in three years and only 11 in the last 12 months. This amount is certainly higher than Academy’s and much lower than Conn’s and of course, Mechanic’s is a much smaller firm than either of those two guys but really……..a D-?

One would think Academy would be the highest with Mechanic’s behind them and Conn’s the lowest. Instead, the results are as follows: Conn’s B+, Academy B- and Mechanic’s D-. Why are both Academy and Mechanic’s lower than Conn’s? What do Academy and Mechanic’s have that Conn’s doesn’t have?

Then it hit us: The question is actually the opposite of what we should be asking. See if you can guess:

Conn’s B+ Complaints: 2,699 Attorney General Action: Yes BBB Accredited: Yes

Academy B- Complaints: 8 Attorney General Action: No BBB Accredited: No

Mechanic’s D- Complaints: 55 Attorney General Action: No BBB Accredited: No

There you have it. Conn’s is Accredited. And the BBB says they have been Accredited since 1963. That means Conn’s Inc. was Accredited through the rough last three years of 2,700 complaints with the BBB and 3,500 compaints with the Texas Attorney General. We thought about that for a minute.

Conn’s Inc. is publicly traded and the BBB is a nationwide firm. We looked up the business days in a year and what Wall Street uses is 252 business days. So we divided that into Conn’s 2,699 complaints over three years and got 3.6 complaints each business day.

Imagine, the BBB employees coming into work each business day for the last three years and yelling: “Hey we got another 3 more complaints on Conn’s!”

Then the next day: “Hey another 4 freaking complaints on Conn’s.” Just imagine the stress on those poor BBB employees dealing with these angry consumers each day. Think about it. Conn’s is on their lips every day. Academy is on their lips once every six months. No wonder the BBB knows so little about Academy. And the BBB certainly is not hearing from any of Mechanic’s 2,000 happy customers.

But what does it mean to get Accredited? How tough are the BBB standards? Is this like some obstacle course from An Officer and a Gentleman that a business must hurdle to get Accreditation from the BBB? After all, if a good company like Mechanic’s Heating and Air Conditioning, LLC with 2,000 happy customers and who held a BBB satisfactory rating in June of 2007 as well as a good company like Academy Sports and Outdoors with only 8 complaints in the last three years can’t get accredited, this accreditation thing must be like a Mount Kilimanjaro. Right?

According the BBB’s website, a business has to do several things. (Link M – BBB Accreditation Requirements 1)

1. The business must actually apply to be accredited.

2. The BBB then must determine if the business meets their tough, rigid Accreditation Standards.

3. And the business must pay a fee to the BBB.

Here it is: Apply…….then BBB Determination………………..and then Pay.

Let’s unwrap each of these.

First, the business must apply for accreditation. We were not able to determine if Academy had applied for accreditation but Mechanic’s Heating and Air Conditioning, LLC says the BBB called and asked them to pay to become accredited. Certainly, according to Mechanic’s, they did not call the BBB to ask to join. It’s possible the BBB could claim that Mechanic’s was only asked to apply and there was no guarantee of Accreditation so there are some possible semantic issues there. But since the BBB “Starts with Trust,” wouldn’t they be likely to call only businesses they thought had a decent shot at getting Accreditation?

And to go a step further since the first thing the BBB starts with every morning they get up and go to work is……..TRUST, wouldn’t the BBB simply state on either Mechanic’s or Academy’s rating page that “this firm has never applied for accreditation” or “The BBB solicited this firm for Accreditation and this firm rejected this solicitation” or “This firm has previously applied for accreditation but after they were weighed and measured, they were found wanting.”? (Or something more professional) Maybe the BBB hasn’t thought of something like that…………yet.

Let’s move on.

Next, the BBB requires a business to meet their tough Accreditation standards. Well, one thing’s for sure, a firm like the BBB that “Starts with Trust” must set the bar incredibly high for someone to achieve this rock-hard Accreditation.

Let’s look at some of these forged-steel Accreditation standards.

1. Establish and maintain a positive track record in the marketplace. (Link N – BBB Accreditation Requirements 2) That sounds like a worthwhile standard. Academy has sure met that standard with few complaints over three year. Mechanic’s appears to have done that with 11 complaints in the last 12 months (or less than one per month) and over 2,000 happy customers documented online. But what about Conn’s positive track record? They have 2,699 complaints in the last three years and paid over $4.5 million to settle the Texas Attorney General’s complaint. I guess if you are looking for a “positive” spin, they did settle the Attorney General Action. That’s positive. And both numbers 2,699 and $4.5 million are in fact positive numbers versus negative numbers. At least that’s something. Let’s keep looking at the Kevlar-like Accreditation standards.

2. Be free from government action that demonstrates a significant failure to support BBB ethical principles in marketplace transaction. Who can argue that that’s not a good standard to have? We certainly don’t want businesses that have had trouble with the government being Accredited by the BBB. No sir! The BBB even mentions the word “ethical” in this Accreditation standard. This sounds like something to separate the boogers from the finger.

Well, both Academy and Mechanic’s meet this requirement. It says right on the BBB’s rating page for each of these companies that neither has had any governmental action. What about Conn’s?

Ooppps…..They had a big action with the Attorney General in Texas. Over $4.5 million in settlements and over 3,500 complaints. How did Conn’s meet that rigid BBB nongovernmental standard? The BBB adds in brackets “(this requires a determination by BBB as to the nature of any violation, whether it was caused or condoned by management, and actions taken to resolve underlying issues that led to the government action). On another section of BBB’s website the grading system states that the BBB classifies the governmental action as either Major, Moderate or Minor. (Link O – BBB Ratings Overview) Obviously, the lower the classification by the BBB the better the overall grade. The BBB rating page of Conn’s does not state how they classified Conn’s governmental action (Major, Moderate or Minor) but surely the BBB would count this as a major violation. Right?

On another part of the BBB’s grading and scoring system, it does clearly state that if a business is Accredited by the BBB, that business scores higher all the way up to A+. A business that is not accredited can only achieve an A. But doesn’t the BBB make the Accreditation first then determine once they are Accredited whether or not the business gets the bonus bump? Hmmmmm.

Let’s looks further at the next BBB Accreditation standard.

BBB's F Grade (Satire)

3. Follow federal, state/provincial and local advertising laws. Again, there have been no legal violations by Academy or Mechanic’s we could find. Conn’s? The Texas Attorney General stated: “The defendants are charged with using high-pressure sales tactics to deceive customers about their extended service warranties,” Attorney General Abbott said. “Texas law contains important protections to prevent vendors from misleading customers about their goods and services. Today’s enforcement action reflects a concerted effort to ensure the defendant is held accountable for violating the law.”

When Conn’s Inc. settled with the Texas Attorney general, the AG then stated: “Under its agreement with the state, Conn’s must remedy its high pressure sales tactics, refrain from misleading customers about extended warranties, and fully honor the warranty agreements that it sells to customers. By redressing of improper conduct and setting aside restitution, this agreement benefits past, present and future Conn’s customers.” The AG went on to state on its website: “Finally, the agreement requires Conn’s to compensate customers who were harmed by its unlawful content. As a result, Conn’s must pay $4.5 million to establish a customer restitution fund. Today’s agreement also requires Conn’s to pay $250,000 in attorney’s fees and $100,000 to the University of Houston Consumer Law Clinic.”

Ouch! A quarter of million dollars for the other side’s attorney’s fees for about six months of legal wrangling. And $4.5 million to pay back customers. Man that’s some big coinage. Imagine how far that cash would go if you took that money and instead rewarded the hard working employees at the BBB who had to wade through 3 of Conn’s complaint on Monday, Wednesday and Friday and 4 of Conn’s complaints on Tuesday and Thursday for the last 3 freaking years? Some gift cards here. Some massages there. Things like that to help those poor folks. That would be wonderful.

But back to the analysis.

It’s hard for us to see how this is not a Major violation under the BBB’s tough, rigid standards. And it’s hard to see how this is not failing to “follow federal, state/provincial and local advertising laws” as the BBB requires. Really, the Attorney General used words like “misleading customers” and “improper conduct.” That doesn’t sound like the “ethical principles” the BBB states in their Accreditation standards. Does it? Can you honestly say the conduct of Conn’s Starts with Trust?

The BBB lists another standard the business must comply with and it is the Code of Advertising. (Link P – BBB Code of Advertising) It has a section on warranties which states: “Sellers or manufacturers should advertise that a product is warranted or guaranteed only if the seller or manufacturer promptly and fully performs its obligations under the warranty or guarantee.” But isn’t that exactly what the Texas Attorney General hammered Conn’s, Inc. for? How did Conn’s Inc. get around that big chimichanga?

That brings us back to the money. Always follow the money. Remember, Academy and Mechanic’s do not pay the BBB for Accreditation. Only Conn’s does. But what kind of fee does the BBB charge Accredited firms? Is it one price fits all or is it based on something else?

Because they “Start With Trust” every morning they wake up and go to work, the BBB states on their website: “Like most standards-based organizations that provide accreditation, we charge a business for the time and costs associated with reviewing and monitoring their organization. As a result, we are able to provide many important and valuable services to all consumers free of charge, such as BBB Reliability ReportsTM.” (Link Q – BBB How They Get Paid)

There you have it. The BBB must cover their time in reviewing and monitoring the organization. With Conn’s level of complaints, how high would that fee be? How many folks would you have to hire just to be dedicated to that one company? Could Conn’s Inc. even afford that fee?

Let’s see…they just paid short of $5 million bananas to settle with Texas. In Conn’s Inc. recent Annual Report filing, they list over $800 million in total revenue for fiscal year ending in January 2010. Would they have enough to cover the costs of the BBB to thoroughly monitor Conn’s?

But there is one final hurdle a company must go to get BBB Accredited. The BBB must determine that the company meets a certain grade. If the company does not meet that grade, it won’t matter how much money they have, how many people they know or how many tears they shed. They simply cannot become an Accredited BBB company.

Let’s see what the BBB says about the minimum grade needed on the tough BBB scoring to get Accreditation.

“……maintain at least a B rating…..” (Link N – BBB Accreditation Requirements 2)

What parent could argue with requiring a B from their kid? B sounds fair to us so let’s apply it to these three companies Academy, Mechanic’s and Conn’s.

Sadly with Academy’s 8 complaints in three years and Mechanic’s 2,000 online happy customers, they both fell short of the tough, fair-minded BBB graders, analyzers and bean counters. And talk about just missing it……….Academy missed by a smidge at B-. Ahhhh. Too bad!

But on the other side of the coin it’s a Festivus miracle! Like a three-point basket at the buzzer, Conn’s slid in just above the B rating with a B+. Thank god because now the BBB can legally take Conn’s Accreditation fees (aka money) and everyone is happy. Even the consumer is thrilled because it gets $4.5 million from Conn’s to make everything alright. Don’t you just love a good ending?

And one final apparent benefit of Accreditation. When you click on Conn’s BBB listing to find a location near you, a special BBB page pops up with that store’s location. (Link R – BBB Single Page of Conn’s) Each of Conn’s BBB pages we looked at fails to mention the 2,699 complaints in the last three years except one page, Conn’s main office in Beaumont, Texas. If you happen to live near that one, then you will see all these complaints. Otherwise, you will see the complaints of the local store and have no inkling as to the 2,699 complaints.

Wow! That’s pretty nice of the BBB. After all, they do “Start With Trust”!

[Editors Note: The BBB states on their website that even though the BBB has :

a. reviewed the business;

b. monitored the business;

c. checked any governmental actions;

d. determined that the business meets the BBB's tough Accreditation standards and

e. accepted the business' money,

"The BBB accreditation does not mean that the business’ products or services have been evaluated or endorsed by BBB, or that BBB has made a determination as to the business’ product quality or competency in performing services." Huh????? Are you kidding me?!!] (Link S – BBB Does Not Condone)

For further documentation, See these Supporting Links that confirm the Grading Hypocrisy of the BBB Below:

A) Link A – Conn’s Website

B) Link B – Texas AG Initial

C) Link C – Texas AG Settle

D) Link D – Conn’s BBB Grade (B+)

E) Link E – Academy Store Numbers

F) Link F – Academy About Us

G) Link G – BBB Academy Complaints & BBB Grade (B-)

H) Link H – Academy Contact Us

I) Link I – Code Adam Participants

J) Link J – BBB Rating of Mechanic’s March 2010 (D-)

K) Link K – BBB Rating of Mechanic’s June 2007 (satisfactory)

L) Link L – BBB Rating of Mechanic’s February 2010 (C)

M) Link M – BBB Accreditation Requirements 1

N) Link N – BBB Accreditation Requirements 2

O) Link O – BBB Ratings Overview

P) Link P – BBB Code of Advertising

Q) Link Q – BBB How They Get Paid

R) Link R – BBB Single Page of Conn’s

S) Link S – BBB Does Not Condone

Subject: RE: BBB-Blog Mechanics Responds

From: scottjordan@live.com

Date: Thu, March 25, 2010 10:33 am

To: news@mechanicsresponds.com

Great job! Your work will help many understand the BBB isn’t all it is cracked up to be. Thanks for putting the link to the BEB on the front page. The BEB will get well over a 1,000 hits in March, and over 2,000 since Feb 1. Interest and knowledge in what the BBB is actually doing to business is on the rise. Did you see my article on the BBB giving a failing bank an A? This article also makes the point that BBB board members may be culpable for BBB policies and standards.

The evidence and pressure is mounting against the BBB.
I will add the link blog-bbb.com to the BEB website today!

Thanks again,
Scott

Date: Mar 24, 2010
By: JR Adams
Article Type: Press Release
Source1:  http://prlog.org/10592300

Failure to Show License Number to Public Among the Allegations

Date: Mar 23, 2010
By: JR Adams
Article Type: Press Release
Source1:  http://prlog.org/10590298
Source2:  http://www.free-press-release.com/

Title:  “David Takes Down Goliath: Hot-Shot Lawyer Out-Smarted by Small Business. Big-time lawyer sues small firm, files frivolous complaints with the BBB, and is gutted in court.”

FOR IMMEDIATE RELEASE

PR Log (Press Release) – Mar 23, 2010 – When a powerful, smart lawyer decides he is going to put your small business out of business, what do you do? Run and hide? Beg for mercy? Soil your britches? For one Atlanta heating and air conditioning company the answer was simple: You pick up one stone, take careful aim and SMACK! Watch him fall.

The story is breathtakingly simple. One bright, sunny day, Simon Weinstein, a lawyer for the powerful Georgia Court of Appeals called Mechanic’s Heating and Air Conditioning, LLC. for air conditioning help on one of his properties and Mechanic’s dutifully responded. They quickly diagnosed the problem and recommended repairs. Simon Weinstein agreed to the work and the price. The Mechanic’s technician had Mr. Weinstein sign or initial the contract nine times and pay a deposit. Mechanic’s then went off to get the equipment and prepared to come back and install it. Nothing remarkable here so far. This is exactly what Mechanic’s Heating and Air Conditioning, LLC. does dozens of times each day with no complaints. Unfortunately, Mr. Weinstein decided that the negotiations were not completed and deal was not done. He decided to cancel the agreement even though it clearly stated it was nonrefundable and noncancelable. This sounds like trouble brewing.

Next thing you know, he demanded a full refund and Mechanic’s refused. Mr. Weinstein told Mechanic’s that he had taken down other businesses who failed to give in to his demands. He threatened a suit and Mechanic’s lawyered up with what small-time lawyer they could afford. Mr. Weinstein played another card: he went to the tabloid journalism that pervades our airwaves. Cameras and reporters buzzed everywhere. Mr. Weinstein then assembled his dream team and prepared to annihilate Mechanic’s Heating and Air Conditioning, LLC. from the face of the earth.
The day of court was a zoo. Cameras, witnesses, questions, reporters. And that was before they could get in the door for the hearing. Then Mr. Weinstein and his dream team emptied out the kitchen sink of legal moves. He hammered on Mechanic’s and their puny legal defense. The beating just kept coming. Mechanic’s had one stone to throw: the contract Simon Weinstein signed or initialed nine times. They admitted that into evidence and rested.

Days later the judge ruled in favor of……………. Mechanic’s Heating and Air Conditioning, LLC. ! Yep, that’s right. The judge ruled that Simon Weinstein would have the eat the five digit legal expenses he incurred and the real kicker, the stone in the middle of the head, a money judgment to Mechanic’s Heating and Air Conditioning, LLC. Ouch!

As Mechanic’s thought about celebrating, they instead prepared for garnishing Simon Weinstein’s wages and bank accounts, filing liens on his properties and other such nasty collection methods. Then BINGO! Before they could launch more stones, the check came in from Simon Weinstein for the full amount. Wow! Then the celebrating began. In fact, a complete story of that celebration and anniversary of the beatdown is posted online at http://www.simonweinstein.com.  A company called Mechanic’s Responds.com News LLC. decided to purchase the name Simon Weinstein and dedicate a website to the story. So the legend of Simon Weinstein will live on according to the Mechanic’s staff: “As long as the internet exists and as long as we have the $9.00 each year to pay for this site, there will be forever a tribute to our miraculous victory over attorney Simon Weinstein and his legal dream team. We are just sorry we could not help the businesses that ran into him before we did.”

Talk about putting your foot on a dead Goliath and pounding your chest. This is one David who fought back. Surely an inspiration to us all!

July 23, 2008
By David Wallace
Source: http://www.searchengineguide.com/david-wallace/

I came across a story posted at Search Engine Land pointing out that Google has an “unsatisfactory” record with The Better Business Bureau. How can a company voted “top global brand” in 2008 at the same time have an unsatisfactory record with the BBB? Apparently because out of 331 complaints filed against the search giant over the past three years, 2 were listed as unresolved. that’s right – just 2! Despite this, Google continues to lead the way in search and nothing on the horizon seems to be able to change that.

This got me thinking as to whether the BBB is still a useful resource in today’s online world. Their mission is to be the leader in advancing “marketplace trust” which they accomplish by creating communities of trustworthy businesses, setting standards for marketplace trust, encouraging and supporting best practices, celebrating marketplace role models, and denouncing substandard marketplace behavior. Businesses have always been proud to display their BBB membership, which indicates they are “more trustworthy” than non BBB member companies.

Two things have me concerned however as to whether the BBB has outlived their usefulness, especially in the case of “online” businesses.

1. BBB Discriminates Against Online Business

When a company becomes a BBB member, they are given a certificate that announces their membership. Many will proudly display this in their offices or storefronts so that customers can see they are a member. They may also use the BBB logo it in print advertising to identify their membership. However, should a company decide to announce their membership online via a web site for example, they can only do so through the BBB’s Online Reliability Program. Did I mention that this requires an extra fee?

I have argued in the past that the BBB’s policy to charge extra when displaying the BBB logo online is a discriminatory practice against online business, especially those who have no other way to announce their membership (i.e. they don’t have a physical location or storefront). Online businesses not only have to pay the annual BBB member dues which are based on the number of employees they have, they also have to pay a separate fee to announce that membership on their sites.

The Better Business Bureau needs to recognize that most businesses today have an online presence and that many of their existing or potential customers will visit them there long before entering a physical location. As a BBB member, a company should have the right to announce that membership on their web sites, social media profiles, online press releases and the like, without having to pay extra fees. Until the BBB changes their policy on this, it is nothing short of discriminatory.

2. Do People Even Use The BBB Any Longer?

Since joining the Better Business Bureau in 1998, I can count the number of clients that have been referred as a result of them on both hands. On the other hand, the number of clients who have found us online via organic search results is phenomenal.

This leads me to wonder how much credibility consumers actually place in BBB valuations. It would seem to me that businesses should have much more concern over what people are saying about them online. I’m talking about online reputation. For example, conduct a search for any brand name – even your own. What do the first page of search results say? Are they positive, negative or even indifferent? This is the space where many consumers are now looking when qualifying whether they want to do business with a company or not.

Every time the BBB semi-annual billing statement has arrived in the mail, I have wrestled as to whether to continue my company’s membership or not. So far, the BBB has won although I have refused to pay the extra fees for the Online Reliability Program for the last few years even though the BBB logo is present on our sites.

I am much more concerned over what the search results say about our company and if you are a business owner you should as well. If something negative begins to show up on the first page, especially above the fold, it can cause irreparable damage to your business. Many companies have discovered this the hard way which then forced them into the very often difficult task of having to repair their tarnished reputations.

A Better Solution?

One of the beneficial things about BBB membership, at least for consumers, is that you as a company agree to work out disputes with clients. This however is a defense mechanism. In other words, you do not react until the consumer is upset about something. A proactive approach is a much better solution in my opinion. How does one go about accomplishing this? There are several ways to do this with the main idea being “open yourself to communication.”

This can be done with a company blog that is open to comments. Putting out quality content that is somehow related to your industry or even the specific products and services you offer is a good start. Allowing consumers to interact with you via the comment system is the icing on the cake. It will allow them to engage you of which they might praise you, probe you for more information or even criticize you. It also allows you to react to them, oftentimes long before negativity hits the search results or the BBB.

Getting involved with social media is also a great way to be proactive. Setting up profiles on all the major social media sites using your brand name(s) is a great way to control what the search results are saying about you. But don’t stop there. Get involved with social media, especially when people are talking about you.

It’s all about getting involved in the conversation. Consumers want an open dialog with the companies they choose to do business with. So give them what they want.

This is what Google does so well. They give consumers what they want – relevant search as well as a wide variety of other products. They keep the door open for communication as well. That is why an unsatisfactory record with the BBB has not hurt them in the least. They continue to grow, acquire and dominate.

Our BBB membership comes due in December and to be honest with you, I think I might let it go this time around. I just don’t see the value any longer when there are so many other productive things you can do to establish trust with consumers.