Breaking News Story Mechanics Responds.com® News, LLC

BBB will not talk with ABC TV In Wake of 20/20 News Expose’

Pictured here is Atlanta BBB President, Mr. Fred Elsberry amidst a brewing Sex Scandal at his Atlanta BBB – By the way – That is “Elsberry” with a “Y” as in “Y” will the BBB not come forward with the Truth in this matter.

As usual with Fred Elsberry’s Atlanta BBB, “mum” is the word.  Mechanic’s Responds.com® News, LLC has not received any comment to date from Fred Elsberry or the BBB – Not even a Denial!

Mechanic’s Responds.com® has learned that Fred Elsberry and his Atlanta BBB will not talk with any ABC station of the local ABC affiliates in retribution for the fine piece of work by Brian Ross’ of ABC’s 20/20 which showed the BBB as the grade sellers “pay to play” and bad actors they are.

Our Source(s) have confirmed this information.  We were told that if anyone was to ask about the 20/20 news piece during a “membership invitation”, they were to be referred to Fred Elsberry only.  We were told Mr. Fred Elsberry would talk to the potential “new members” behind closed doors.

Again, it seems clear the Atlanta BBB is in a whirlwind hoping that the story goes away and is not picked up by ABC or by a National Network.

Mechanic’s Responds.com® News, LLC will continue with its Investigation into the Atlanta BBB.  There is much more to this story coming soon.

We will be reaching out to Fred Elsberry for further comments.  We doubt he will respond.  This is his BBB’s usual MO.

Fred Elsberry’s Divorce Records

Complaint recently filed by Mechanic’s Heating & Air Conditioning, LLC against the Atlanta BBB with the OCA

You can reach Fred Elsberry via email at fred@atlanta.bbb.org.

You can reach Monty G. White, Jr. via email at News@MechanicsResponds.com.

DISCLAIMER: THE INFORMATION CONTAINED IN THIS WEBSITE INVOLVES ISSUES OF PUBLIC INTEREST AND / OR CONCERN.  WE UNDERSTAND THAT MEDIA OUTLETS AND PUBLIC OFFICIALS MAY EXPLORE THIS WEBSITE AND REQUEST ALL ADMINISTRATIVE, LOCAL, STATE, AND FEDERAL GOVERNMENT BODIES TO INVESTIGATE THE MATTERS CONTAINED HEREIN.  The information contained herein is for informational purposes only, and expresses the opinions of the authors.  We encourage all interested parties to verify the information contained herein on their own.  The information contained herein was derived from public information sources, private sources, from our records, or from Reports or Complaints filed with us.

To date, Fred Elsberry , the Atlanta BBB, nor the CCCB has responded to Mechanic’s Responds.com® repeated requests for comments.

Mechanic’s Responds.com® will soon be revealing the high ranking BBB executive who our source(s) have said they have had a long term sexual affair with at the Atlanta BBB.

Mechanic’s Responds.com® News, LLC will continue with its Investigation into the Atlanta BBB.

There is much more to this story coming soon.

We will be reaching out to Fred Elsberry for further comments.

We doubt he will respond.

Again, this is his BBB’s usual MO.

Anonymous Letter Received

Fred Elsberry’s Divorce Records

Complaint recently filed by Mechanic’s Heating & Air Conditioning, LLC against the Atlanta BBB with the OCA

You can reach Fred Elsberry via email at fred@atlanta.bbb.org.

You can reach Monty G. White, Jr. via email at News@MechanicsResponds.com.

DISCLAIMER: THE INFORMATION CONTAINED IN THIS WEBSITE INVOLVES ISSUES OF PUBLIC INTEREST AND / OR CONCERN.  WE UNDERSTAND THAT MEDIA OUTLETS AND PUBLIC OFFICIALS MAY EXPLORE THIS WEBSITE AND REQUEST ALL ADMINISTRATIVE, LOCAL, STATE, AND FEDERAL GOVERNMENT BODIES TO INVESTIGATE THE MATTERS CONTAINED HEREIN.  The information contained herein is for informational purposes only, and expresses the opinions of the authors.  We encourage all interested parties to verify the information contained herein on their own.  The information contained herein was derived from public information sources, private sources, from our records, or from Reports or Complaints filed with us.

BBB: Questionable and Unfair Accrediting Practices and Grade Scaling

At some point, we have all been students and teachers whether in the classroom or the school of life. In the classroom, there is a clear definition and of a grading scale from A+ to F- and as students, we understand that our grades are based on class work, tests and homework. In the school of life, the grading scale is different…but nonetheless…we have a clear understanding that accountability, responsibility, teamwork, integrity and ethics are important and that the more we strive to operate within those parameters…our grade in life will be higher.

Apparently, the national BBB and the Metro-Atlanta BBB operate under a different umbrella of truth when it comes to granting accreditation and grading practices.

Recently, Fred Elsberry, President of the Metro-Atlanta BBB was featured on several local media television networks making slanderous statements that Mechanic’s Heating and Air Conditioning, LLC had a grade as high as a “D” when in fact, Mechanic’s had a grade of a “C” for a considerable amount of time. The truth is that the Atlanta BBB only changed Mechanic’s grade from a “C”  to an  “F” after the sensationalized and staged sting tabloid story produced by Wendy Saltzman that was aired in February 2012. When Mr. Elsberry was confronted with an (OCP) Office of Consumer Protection complaint and a screenshot of Mechanic’s BBB reliability report dated February 21, 2012 showing a “C” rating, and shown the fact that Mechanic’s hired a high profile first amendment attorney. Suddenly and magically in a matter of hours, Mechanic’s BBB reliability report was changed to a “B-” rating courtesy of Fred Elsberry and the Metro-Atlanta BBB after the complaint was lodged.

It brings into further question the unfair grading practices of the BBB…and further the purpose of the BBB? To the general public that is not privy to the actual practices of the BBB, we consider it as our civic duty to educate and inform the public that the BBB is not the trusted and reliable governing body of defining “Better Business” that it claims to be and welds itself as scepter of truth when in actuality it is a dagger of falsehood and lies.

This is not the first time the grading practices of the BBB have been brought into question as they were exposed on the national level on ABC’s 20/20 news magazine feature by Brian Ross.

Our grade for the BBB is “F” for “falsehood” and “fraudulent” and “frowned upon”.

We are not certain which school of thought Fred Elsberry or the BBB subscribe to…but when it comes to the actual work being done…it’s easy to see that ethics, integrity or fairness was not in the curriculum.

Better Business Bureau

From Wikipedia, the free encyclopedia

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The Better Business Bureau (BBB), founded in 1912, is a corporation consisting of a number of separately governed and incorporated local BBB organizations in the United States and Canada, affiliated with the Council of Better Business Bureaus (CBBB).^[1] In 2012 the BBB celebrates its Centennial.^[2]

The Better Business Bureau, through local chapters, invites businesses to become dues-paying Accredited members. In return, the BBBs allow their member businesses the use of their logo, and mediation and arbitration services.^[3]

The Better Business Bureau gathers and archives information it receives about businesses, both locally and nationally. It uses the information it gathers from consumers and other businesses to vet businesses to become members. The BBB collects information on business reliability, alerts the public to frauds against consumers and businesses, provides information on ethical business practices, and acts as mutually trusted intermediaries between consumers and businesses to resolve disputes. According to the BBB website, their mission is “advancing marketplace trust”.^[4] In an effort to remain unbiased and maintain fairness the BBB holds a standard policy of refraining from recommending or endorsing any specific business, product or service.^[5]

Although it has “Bureau” in its title, the Better Business Bureau is not affiliated with federal, state, or local government, and has no direct affiliation with any consumer protection government authority. The BBB, as a privately held corporation, has no governmental authority over businesses.

[edit] History

“Medical quackery and the promotions of nostrums and worthless drugs were among the most prominent abuses which led to the establishment of formal self-regulation in business and, in turn, to the creation of the NBBB.”^[6]

BBB’s concept has been credited to several court cases, such as United States v. Forty Barrels and Twenty Kegs of Coca-Cola, initiated by the government against a number of firms, including the Coca-Cola Company, in 1906 after the Pure Food and Drug Act had become law. Samuel Candler Dobbs, sales manager of Coca-Cola and later its president, took up the cause of truth in advertising in the wake of those judgements.^{[citation needed]}

In 1909, Dobbs became president of the Associated Advertising Clubs of America, now the American Advertising Federation (AAF), and began to make speeches on the subject. In 1911, he was involved in the adoption of the “Ten Commandments of Advertising”, one of the first codes of advertising developed by groups of advertising firms and individual businesses. Similar organizations in succeeding decades, such as the National Better Business Commission, Inc. of the Associated Advertising Clubs of the World (1921), and the National Association of Better Business Bureaus, Inc. (1933) merged to become the Association of Better Business Bureaus, Inc in 1946. In 1970, the Council of Better Business Bureaus, Inc. (CBBB) was established.^{[citation needed]}

[edit] Structure and funding

The 116 regional BBBs are independently governed by their own boards of directors, but must meet international BBB requirements, which are monitored and enforced by the CBBB on a continuous basis. The CBBB is governed by leaders of local BBBs, as well as by senior executives from major American corporations, and community leaders such as academics and legal experts. Each BBB is run separately and is chiefly funded by its members, who often serve on its board. A study by a business school dean at Marquette University found that ninety percent of BBB board members are from business.^[7]

Businesses that move from one BBB jurisdiction to another may need to apply for BBB Accreditation in the new BBB location unless they have a system-wide accreditation. BBB entities are chiefly funded by member businesses. The national CBBB receives franchise fees, which amounted to $4,884,226.00 in 2009.^[8]

[edit] Dispute resolution procedures

The organization’s dispute resolution procedures are established by the Council of the Better Business Bureaus, and implemented by local BBBs. Usually, disputes can be resolved through mediation; when appropriate, low- or no-cost arbitration may also be offered and provided through the BBB. The BBB acts as a neutral party when providing dispute resolution services.^[9]

Complaints about the practice of professions like medicine and law are usually not handled by the BBB and are referred to associations regulating those professions.^[10] The BBB does not handle complaints that have gone to court or are in the process of going to court as the complaint is already being handled by an alternative entity.^[11]

If a BBB receives a consumer dispute, the BBB contacts the business in question and offers to mediate the dispute. A business does not need to be a member of the BBB to use its mediation services. These mediation services are free to all businesses and consumers. BBB Accreditation, or membership, is completely optional for a business to accept and participate in through the payment of dues. A business’s declination of membership does not result in a lowered BBB rating. Past complaints allege that the BBB compiles scores based upon their ability to collect their money from businesses, and not entirely upon business performance.^[12]

[edit] Rating system and accreditation

Until 2008, the BBB rated companies “satisfactory” or “unsatisfactory”. On January 1, 2009, the BBB moved to a new system based on a school-style A⁺–F rating system.^[13] The 16 factors have been posted on each business review since the program’s inception^[14] and the details on the points awarded as well.^[15] Initially there was a 17th factor worth 4 points for businesses that were Accredited and paid a fee to BBB. That process was changed in November 2010 in response to criticism in the media and from the Connecticut attorney general who accused BBB of using ‘pay to play’ tactics.^[12] There are currently over 625,000 companies rated “A⁺” that are not accredited and pay no fees to BBB and almost 300,000 accredited firms with an “A⁺” rating that are paying annual fees.^{[citation needed]} If a business chooses not to provide basic information about his/her business, such as size and start state, the BBB assigns a Not Rated (NR) rating due to lack of information.^[16]

If a business chooses not to provide basic information about his/her business, such as size and start state, the BBB does not have sufficient information and may assign a Not Rated (NR) rating.^[17][18] A low rating due solely to a company not providing information would read: “BBB does not have sufficient background information on this business.”

A business is eligible for BBB Accreditation if it meets, in the opinion of the BBB, the “BBB Standards for Trust”^[19] There are eight BBB Standards for Trust that the BBB expects its Accredited or Member businesses to adhere to: Build Trust (“maintain a positive track record in the marketplace”), Advertise Honestly, Tell the Truth, Be Transparent, Honor Promises, Be Responsive (address marketplace disputes), Safeguard Privacy (protect consumer data) and Embody Integrity.^[20]

The Attorney General of Connecticut demanded that the BBB stop using its weighted letter grade system, calling it “potentially harmful and misleading” to consumers.^[21] Responding to the Atorney General of Connecticut and others, the BBB has since modified its letter grade system.^[12]

[edit] Criticism

In 2010, 20/20, an ABC network news magazine, reported in a segment titled ‘The Best Ratings Money Can Buy’ about the irregularities in BBB ratings.^[22] They reported that a man created two dummy companies which received A+ ratings as soon as he had paid the membership fee. They also reported that business owners were told that the only way to improve their rating was by paying the fee. In one case a C was turned to an A immediately after a payment and in another case a C- became an A+. Chef Wolfgang Puck said that some of his businesses receive Fs because he refuses to pay a fee. Ritz Carlton, which does not belong either, also receives Fs for not responding to its complaints.^[21]

In response, the president of the Council of Better Business Bureaus has stated the BBB ratings system will cease awarding points to businesses for being BBB members.^[23] The national BBB’s executive committee took several steps to address the public’s perception of the ratings system. The BBB ratings system no longer gives additional points to businesses who pay accreditation fees. They also implemented a system to handle complaints about BBB sales practices and conducted a review of their accreditation processand instituted a strict, uniform, minimum Accreditation Processes.^[24]

In Canada, the CBC News reported in 2010, that Canadian BBBs were downgrading the ratings scores of businesses who stopped paying their dues. For example, a moving business who had an A rating and had been a BBB member for 20 years, dropped to a D-minus rating when they allegedly no longer wanted to pay dues.^[25]

BBBs have been accused of unduly protecting companies. The BBB responds by, at a minimum, notating complaints on the “Business Reviews” section of its web sites.^[26] If a branch does not act reasonably on behalf of a consumer, a complaint may be filed with the Federal Trade Commission. However, recent reports have suggested that the Austin chapter of the Better Business Bureau refused to resolve complaints against companies if customers do not pay a $70 “mediation fee”.^[27]

[edit] Criticism on case resolutions

It has been reported that the BBB encourages and solicits money from the very businesses they monitor, which again, raises the question of neutrality.^[28] The BBB states that they hold their Accredited businesses to a higher standard, as outlined in their Accreditation standards.^[29]

On December 22, 2010, William Mitchell, CEO of the Los Angeles BBB, and originator of the BBB Letter Grading System, resigned^[30] as a result of an internal investigation conducted by the CBBB.^[31]

Fred Elsberry’s Divorce Records

Complaint recently filed by Mechanic’s Heating & Air Conditioning, LLC against the Atlanta BBB with the OCA

You can reach Fred Elsberry via email at fred@atlanta.bbb.org.

You can reach Monty G. White, Jr. via email at News@MechanicsResponds.com.

DISCLAIMER: THE INFORMATION CONTAINED IN THIS WEBSITE INVOLVES ISSUES OF PUBLIC INTEREST AND / OR CONCERN.  WE UNDERSTAND THAT MEDIA OUTLETS AND PUBLIC OFFICIALS MAY EXPLORE THIS WEBSITE AND REQUEST ALL ADMINISTRATIVE, LOCAL, STATE, AND FEDERAL GOVERNMENT BODIES TO INVESTIGATE THE MATTERS CONTAINED HEREIN.  The information contained herein is for informational purposes only, and expresses the opinions of the authors.  We encourage all interested parties to verify the information contained herein on their own.  The information contained herein was derived from public information sources, private sources, from our records, or from Reports or Complaints filed with us.

Breaking News Story Mechanics Responds.com® News, LLC

BBB in Full “Damage Control” Mode in Wake of BBB Sex Scandal at the Atlanta Better Business Bureau

As usual with Fred Elsberry’s Atlanta BBB, “mum” is the word.  Mechanic’s Responds.com® News, LLC has not received in any comment to date from Fred Elsberry or the BBB – Not even a Denial!

Mechanic’s Responds.com® has learned that Fred Elsberry and his Atlanta BBB has launched into full damage control mode as soon as our first story broke on this BBB Sex Scandal.

Our Source(s) have confirmed that Fred Elsberry had an emergency meeting yesterday with his office staff and telemarketers.  They were told not “to talk to any previous employees or Monte“.  Our Source(s) describe the Atlanta BBB as “Jumpy“.

Our Source(s) confirmed that the text messaging was so massive from the BBB, that it was a feeling of being “overwhelmed“.

Our Source(s) have confirmed the Atlanta BBB has started going through employee’s desks, and computers.  Additionally, our Source(s) were concerned the BBB “torked” email account(s) belonging to our Source(s).

Our Source(s) also confirms the Atlanta BBB “apparently” checks our News “site daily“.

Our Source(s) are also being encouraged not to cooperate with Mechanic’s Responds.com® or Monty White in any manner.  The Atlanta BBB told its employee’s in yesterday’s meeting not “to talk to any previous employees or Monte“.

It seems clear the Atlanta BBB is in a whirlwind hoping that the story goes away and is not picked up by ABC or by a National Network.

Mechanic’s Responds.com® News, LLC will continue with its Investigation into the Atlanta BBB.  There is much more to this story coming soon.

We will be reaching out to Fred Elsberry for further comments.  We doubt he will respond.  This is his BBB’s usual MO.

Fred Elsberry’s Divorce Records

Complaint recently filed by Mechanic’s Heating & Air Conditioning, LLC against the Atlanta BBB with the OCA

You can reach Fred Elsberry via email at fred@atlanta.bbb.org.

You can reach Monty G. White, Jr. via email at News@MechanicsResponds.com.

DISCLAIMER: THE INFORMATION CONTAINED IN THIS WEBSITE INVOLVES ISSUES OF PUBLIC INTEREST AND / OR CONCERN.  WE UNDERSTAND THAT MEDIA OUTLETS AND PUBLIC OFFICIALS MAY EXPLORE THIS WEBSITE AND REQUEST ALL ADMINISTRATIVE, LOCAL, STATE, AND FEDERAL GOVERNMENT BODIES TO INVESTIGATE THE MATTERS CONTAINED HEREIN.  The information contained herein is for informational purposes only, and expresses the opinions of the authors.  We encourage all interested parties to verify the information contained herein on their own.  The information contained herein was derived from public information sources, private sources, from our records, or from Reports or Complaints filed with us.

Breaking News Story Mechanics Responds.com® News, LLC

Sex Scandal at the Atlanta Better Business Bureau

Just what kind of business is the Atlanta Better Business Bureau?  The BBB has come under fire recently in the national news arena questioning its integrity and less than ethical business practices.  In light of unfolding news regarding a sex scandal relative to a very high-ranking executive at the Metro-Atlanta Better Business Bureau, we have to question just what kind of business the BBB is conducting?

There will be forthcoming News regarding this story as it continues to unfold.

We will be reaching out to Fred Elsberry for further comments.

Fred Elsberry’s Divorce Records

Complaint recently filed by Mechanic’s Heating & Air Conditioning, LLC against the Atlanta BBB with the OCA

You can reach Fred Elsberry via email at fred@atlanta.bbb.org.

You can reach Monty G. White, Jr. via email at News@MechanicsResponds.com.

DISCLAIMER: THE INFORMATION CONTAINED IN THIS WEBSITE INVOLVES ISSUES OF PUBLIC INTEREST AND / OR CONCERN.  WE UNDERSTAND THAT MEDIA OUTLETS AND PUBLIC OFFICIALS MAY EXPLORE THIS WEBSITE AND REQUEST ALL ADMINISTRATIVE, LOCAL, STATE, AND FEDERAL GOVERNMENT BODIES TO INVESTIGATE THE MATTERS CONTAINED HEREIN.  The information contained herein is for informational purposes only, and expresses the opinions of the authors.  We encourage all interested parties to verify the information contained herein on their own.  The information contained herein was derived from public information sources, private sources, from our records, or from Reports or Complaints filed with us.

Mechanic’s Responds.com® News, LLC has learned that today Mechanic’s Heating & Air Conditioning, LLC, has filed a Complaint with the OCP against the Atlanta BBB and its President Fred Elsberry.  Click HERE for a copy of the Complaint.

Click HERE for a Copy of Atlanta BBB’s President Fred Elsberry’s Divorce Records.

In their Complaint to the OCP, Mechanic’s Heating & Air Conditioning, LLC states the following:

On or about  March 9, 2012 NBC 11Alive in Atlanta, Georgia aired a story wherein Fred Elsberry of the Atlanta BBB stated that the highest grade Mechanic’s Heating and Air Conditioning, LLC had reached with the Atlanta BBB was a “D”.

This statement was a lie and he knew it to be false when he said it. Attached to this letter is a true and correct copy of a screen shot showing Mechanic’s Heating and Air Conditioning, LLC reached the grade of a C on February 21, 2012 right before Mr. Elsberry took to the air to slander and defame our Company.

We are requesting an investigation in this matter and we believe that Mr. Fred Elsberry along with the Atlanta BBB has violated The Fair Business Practices Act of 1975 among other statutes.

The Fair Business Practices Act of 1975   10.1.391  states:  “The purpose of this part shall be to protect consumers and legitimate business enterprises from unfair or deceptive practices in the conduct of any trade or commerce in part or wholly in the state.

10.1.392.28 states:   ”Trade” and “commerce” mean the advertising, distribution, sale, lease, or offering for distribution, sale, or lease of any goods, services, or any property, tangible or intangible, real, personal, or mixed, or any other article, commodity, or thing of value.”

10.1.393. (b)(5) “Representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities that they do not have or that a person has a sponsorship, approval, status, affiliation, or connection that he or she does not have;

(7) Representing that goods or services are of a particular standard, quality, or grade or that goods are of a particular style or model, if they are of another;

10.1.393. (b) (8) “Disparaging goods, services, or business of another by false or misleading representation.”

We have been disparaged by false and misleading statements from Mr. Fred Elsberry along with the Atlanta BBB.

We hope you start an investigation immediately, issue subpoenas and punish this corrupt organization.

Thank you for your time and attention.

Additional Public Information:

FRED T. ELSBERRY, JR.
Divorce
Fred T. Elsberry and Pamela B. Elsberry
Fred T. ELSBERRY, Jr.
Spouse: Patricia Elsberry
170 Murphy Creek Lane
Fayetteville,GA 30215
Phone# H – (404)762-4400
C – (678)612-5651
Children: Ken, Jason, Drew, David
Grandchildren: 1
GEORGIA

You can reach Fred Elsberry via email at fred@atlanta.bbb.org.

You can reach Monty G. White, Jr. via email at News@MechanicsResponds.com.

DISCLAIMER: THE INFORMATION CONTAINED IN THIS WEBSITE INVOLVES ISSUES OF PUBLIC INTEREST AND / OR CONCERN.  WE UNDERSTAND THAT MEDIA OUTLETS AND PUBLIC OFFICIALS MAY EXPLORE THIS WEBSITE AND REQUEST ALL ADMINISTRATIVE, LOCAL, STATE, AND FEDERAL GOVERNMENT BODIES TO INVESTIGATE THE MATTERS CONTAINED HEREIN.  The information contained herein is for informational purposes only, and expresses the opinions of the authors.  We encourage all interested parties to verify the information contained herein on their own.  The information contained herein was derived from public information sources, private sources, from our records, or from Reports or Complaints filed with us.

Audio

• The Early Edition BBB Business ratings B.C.’s Better Business Bureau is accused of favouring members over non-members in its online rating system, the CBC’s Kathy Tomlinson tells host Rick Cluff Listen: 7:25

The Better Business Bureau in B.C. is being accused of favoring members over non-member businesses in its online rating system. The consumer agency brought in a new international grading system two years ago, where both non-members and members are rated on its website, with a score ranging from A-plus to F.

“I think they need to look at how that rating system works,” said Victoria resident Dale Sketchley.

A CBC News investigation found all movers in Vancouver and Victoria who paid for a BBB membership — also known as accreditation — had ratings no lower than A-minus, including some with several recent complaints against them.

Sketchley filed a complaint about a Victoria moving company that is an accredited BBB member in August. Almost three months later, the case was closed by the BBB, without being resolved one way or the other.

Complaint not addressed: consumer

“It was completely designed for the business,” said Sketchley, “It was conveniently closed and none of my arguments were adequately addressed.”

Records show the BBB sent a letter to Straight Line Pro Moving Services after Sketchley complained he was charged more than he expected to pay and was treated rudely and sworn at by the movers.

Initially, the mail was returned from the business address, so the BBB simply closed the case.

“When I saw the case being described as “unpursuable” — just because the letter was returned — I realized that this was not right,” said Sketchley.

When he insisted to the BBB the movers could be found with one phone call, it re-opened the file. Ultimately, it closed the case again, saying there was no proof to support Sketchley’s complaint because he didn’t have a written contract.

Straight Line owner David Carlos told CBC News that Sketchley was an “extremely irate and unreasonable customer,” whose complaint was exaggerated.

His company still has an A rating with the BBB, despite this and one other recent complaint that was also closed without resolution. Two older, unresolved complaints are also listed on the BBB website.

BBB maintains impartiality

Before she knew the results of CBC’s investigation, Lynda Pasacreta, president of the BBB in the Lower Mainland, insisted all companies are treated equally in the ratings, whether they are members or not.

“We are impartial. We take — in the Better Business Bureau — a complaint that’s unresolved very seriously. An accredited business that does not resolve a complaint is up for immediate revocation,” said Pasacreta.”If they don’t respond to that complaint, they go to a D-minus.”

BBB accredited businesses in B.C. pay an annual fee of $368, for the smallest business, to $1,600 for those with more than 250 employees.

CBC News looked at all the companies listed under Movers in Vancouver and Victoria on the BBB websites.

Members keep A ratings

Of the 32 accredited movers listed — all with an A-minus or better — two of the larger companies, MiniMove and Purely Canadian Movers, each had 12 complaints filed against them in the last three years.

Two of those complaints were “administratively closed,” which means they could not be settled, like Sketchley’s case. Both companies maintained an A rating.

Pasacreta said they are allowed several complaints because of their size.

However, Van City Moving, a small member, kept an A-plus rating, despite a complaint the BBB called “unpursuable” because the “company cannot be located.”

On the other hand, none of the non-member movers in Victoria rated higher than a B, while more than half in Vancouver also have a B grade or lower.

“Either you are with them and they take care of you — otherwise it looks like they just give you the worst rating and leave you for nothing,” said Ed Pomalecki, who runs A Homart Moving and Delivery, a non-member given a D-minus rating.

Pomalecki has been in business for more than 20 years. His business was a BBB member in good standing until 2000 when he said he cancelled his membership because he no longer wanted to pay the annual fee.

“I think it’s very unfair that I have gone from an A to a D-minus,” he said. “I don’t think I deserve it.”

The BBB received one complaint about his company, in 2008, but said he “failed to respond,” so it downgraded the score.

Non-member says business hurt

Pomalecki insisted he heard nothing from the BBB about the complaint, but someone from there did call at one point, trying to sell him another membership.

He said he didn’t know his company’s rating had dropped until CBC News contacted him.

A Homart Moving and Delivery, which is not a BBB member, was given a D-minus rating after a complaint the owner said he didn’t know about.

The BBB confirmed it didn’t call Pomalecki about the complaint, but sent two letters.

“We typically do phone them, but in this case we sent two letters and he failed to respond,” said Pasacreta.

“I would have fixed it if I knew,” said Pomalecki. “It looks like [the BBB] was not interested in solving this — maybe to show someone else that this is what happens when you don’t pay.”

He said his business has dropped by 60 per cent in the two years since it got a D-minus rating and he now blames the BBB.

“They dropped me so drastically that it is like killing the business,” said Pomalecki.

“At least if I had known that was the system, I would have chosen to pay $400 [for a membership] but I didn’t even know.”

‘You’ve caught me’

When CBC News asked Pasacreta what the difference was between Van City Moving, the member with one “unpursuable” complaint and an A-plus rating, and Pomalecki’s case, she admitted there is a problem.

“You’ve caught me. And that’s all I can say on that one. You’ve caught me,” said Pasacreta. “[The rating system] is fluid. We have only been in business with the rating system for two years. The dispute resolution system, it is fluid.”

“I didn’t pay the membership and they did. That’s the only difference that I see,” said Pomalecki.

As a result of the CBC’s inquiries, Van City’s A-plus rating has been removed from the BBB website and it is now under review. Pomalecki’s rating may soon go back up.

“When he resolves that complaint, his D-minus will move back up to an A,” said Pasacreta.

Meantime, the Council of Better Business Bureaus in the U.S. has just announced it is changing its rating system because of complaints about favouritism there.

Mover Ed Pomalecki discontinued his BBB membership because he didn’t want to pay the annual fee.

“By next week, the BBB ratings system will no longer give additional points to accredited businesses because of their accredited status,” said a statement by the council on Nov. 18.

The Vancouver BBB said the statement applies to all bureaus in North America. It appears to confirm members were given preferential treatment, despite Pasacreta’s claim everyone is treated equally.

The council said it is also changing how it investigates complaints and how businesses are accredited. The changes have already affected the rating for Pomalecki’s business, which has been raised slightly, to a D.

Dale Sketchley complained to the BBB about the accredited moving company he hired, but felt his complaint was not addressed.

Connecticut Attorney General Richard Blumenthal announced today that the Better Business Bureau (BBB) has agreed to his demands that it stop awarding rating points for dues and make other minor changes to its rating system.

However, Blumenthal said that he – as well as many consumer advoctates – is concerned that the 120 bureaus around the country and in Canada do not have sufficient resources to verify the information used in its controversial A+ to F ratings.

“I am pleased that the BBB is heeding my call to sever ratings from dues — but more needs to be done,” Blumenthal said. “Pay-to-play — or its perception — is unacceptable and unconscionable, as the BBB has rightly recognized. Cash can no longer inflate BBB ratings, as happened under the old system.”

While awarding the extra points is a positive step, I and other consumer advocates believe that it does not end the abusive practices that have taken place in some BBB chapters where high grades were purchased by becoming accredited BBB members. Nor does it end high pressure marketing where better grades are promised in return for paying annual does, as was pointed out in a recent ABC TV 20/20 investigation.

ABC filmed two small business owners in California with average ratings who immediately were given A+ ratings after they paid $425 each to become accredited members. One company, which had a complaint against it on the BBB website, had the complaint erased. The changes Blumenthal said are being taken will not prevent this from happening. Only by returning to the 95-year-old satisfactory/unsatisfactory rating system and ending letter grades can the BBB restore its lost credibility.

Blumenthal however called it a “significant step.”

He did say he remains ‘troubled by the BBB’s rating system. The BBB lacks the resources to verify much information used to rate, rendering its ratings unreliable and suspect. The BBB cannot rely on the word of businesses about licenses, state laws or other information; objective and independent confirmation is vital to accurate ratings. At the very least, the BBB has an ethical — and perhaps legal — obligation to clearly and prominently inform consumers of the severe and significant limitations of its rating system.”

One of the starkest examples of how the Better Business Bureau’s two-year-old letter grade system rewards dues paying accredited members and punishes those who refuse to pay, is the difference in ratings consumers see when they check the BBB website to purchase office supplies.

When consumers look up Staples at BBB.org the see that the Framingham, Ma., firm has an F rating and is not an accredited BBB member.

When consumers look up its competitor, Office Depot, they find that the Boca Raton based firm has a high A- rating.

The BBB insists that paying dues will have little impact on a firm’s grades and deny critics’ claims that it changed from its 96-year-old satisfactory/unsatisfactory rating system to letter grades as a way to pressure businesses to pay up.

However, comparing the statistics of the two office supply companies makes it difficult to accept the BBB assurances.

Staples had 833 complaints in the last three years with the BBB while Office Depot had 1,369 complaints.

One major strike against Staples is that the BBB claims that it did not respond to 23 of the complaints. That doesn’t mean that Staples did not deal with those complaints, it simply means that the BBB has no record of them being satisfied.

However, there is no known government investigation or action against Staples.

With Office Depot, BBB website lists recent actions by Missouri, and Florida:

On April 29, 2010 the Missouri State Attorney General announced a consent judgment against Office Depot Inc. for alleged violations of Missouri’s Merchandising Practices Act. The Attorney General’s investigation discovered issues with overcharging Missouri government and non-profit customers. The charges included, misrepresenting cost savings and failing to be forthcoming about such cost savings in their ads and sales pitches. Under the judgment Office Depot is to pay $320,000 in restitution and $120,000 to reimburse the state for the cost of the investigation and enforcing the Missouri Merchandising Practice Act.

The court issued a permanent injunction prohibiting Office Depot from violating the Missouri Merchandising Practice Act and suspend a $100,000 penalty contingent on compliance with the terms of the judgment and permanent injunction.

On June 4, 2010 Florida Attorney General Bill McCollum announced that his office has negotiated a settlement with Office Depot, Inc. regarding allegations that the company overcharged governmental agencies and non-profit organizations for office supplies in violation of the Florida Deceptive and Unfair Practices Act.

Under the settlement, Office Depot will pay approximately $4.5 million in refunds to eligible Florida customers, including Florida government agencies. According to an investigation, Office Depot allegedly switched certain local governmental agencies and private non-profit organizations in Florida from one pricing plan to another without their full understanding or knowledge, potentially resulting in higher prices for those customers.

In addition to the refunds, Office Depot will reimburse the Attorney General’s Office for its investigative costs and for costs associated with ongoing and future enforcement actions. Office Depot also agrees to comply fully with the Florida Deceptive and Unfair Trade Practices Act. Office Depot entered into the Assurance of Voluntary Compliance without any admission that they have violated the Florida Deceptive and Unfair Trade Practices Act or any other law.

The BBB report made no mention of a Dallas Morning News report from last year that says that officials in Texas, Georgia, California, Nevada, North Caroline and Alabama were looking into similar issues against Office Depot.

BBB Responds To Criticism

Steve Cox, the president of the 120 chapter Better Business Bureau Council in the U.S. and Canada, last week conceded that the BBB chapter in Southern California made mistakes.

In response to a devastating ABC TV 20/20 investigation this month on his organization (which did not mention the office supply stores), Cox now says that errors were made – unintentionally – and that reforms will take place.

Connecticut Attorney General Richard Blumenthal launched an investigation into the Connecticut BBB chapter after he was embarrassed by it when he attended its annual program with a company being honored for its high integrity, that turned out later to be a sham.

Cox, as the result of the push back, agreed to take away the four extra points (out of 100)  that the BBB gives to businesses that pay annual fees ranging from $300 to the millions, depending on their size.

What Cox however failed to address was  the most damaging and telling part of the ABC investigation, which proved that businesses COULD BUY better grades – not just a couple of points – by simply joining and paying annual dues.

That went way beyond the formation of fake businesses like Hamas (which last summer got an A- rating), which the traditional media just learned about.

The critical part was about two small businesses in California that had C ratings, even though they only had one complaint between the two of them.

ABC filmed the two owners calling up the BBB and asking how their grades could improve on the BBB website, which lists and grades hundreds of thousands of businesses.

Simple, was the answer. Pay $425 in annual does to become accredited BBB members.

Forget about all the promises that Cox and others in the BBB said two years ago when they changed the satisfactory/unsatisfactory grading system to an A+ to F ratings. Cox then insisted that the BBB would evaluate every business on 16 criterias and would thoroughly investigate all accredited members to make sure they deserved their grades.

As soon as the charges cleared the credit cards, the two businesses suddenly had their C ratings skyrocket to the top A+ and the one complaint disappeared from the website.

I would love for the BBB to explain to me how their tinkering would have avoided those clearly Pay To Play proven and unchallenged incidents.

William Mitchell’s salary exceeds that of the BBB’s national president. The head of a watchdog organization for nonprofits calls such compensation ‘much more than normal.’

The executive who heads the organization’s Los Angeles branch makes more than $400,000 a year. His San Diego counterpart brings in $206,000. The head of a smaller office in New York earns $175,000.

Salaries at a corporation? Guess again.

That’s the compensation for local presidents of the nonprofit Better Business Bureaus, which issue letter ratings to businesses that are supposed to reflect how fairly they treat consumers.

The organization’s national president earned $335,000 in 2008, according to the latest available documents from the Internal Revenue Service.

But that salary was eclipsed by William Mitchell, president of the Better Business Bureau of the Southland, which includes Los Angeles. He made $409,490 that year, according to IRS documents.

“I can’t remember any case where somebody running a local chapter is earning more than the person who is running the national organization,” said Trent Stamp, former head of the watchdog organization Charity Navigator and now executive director of the Beverly Hills-based Eisner Foundation.

The Better Business Bureaus have come under a spotlight after disclosures that the organization gave better ratings to businesses that were paid members — and, in some cases, awarded A-grade ratings to phony companies that paid up.

Small businesses have long complained that many chapters of the Better Business Bureau used telemarketers armed with high-pressure tactics to get them to sign up for memberships that could cost $400 or more.

In the wake of fresh news reports on its practices last week, Steve Cox, president of the national Council of Better Business Bureaus, said the organization would no longer boost ratings just on a basis of paid membership.

He also said the BBB would investigate activities at the Southland branch, which initiated the controversial grading system.

The salaries paid to the local chapter executives are set by local boards of directors, which have discretion to pay any amount that they feel is appropriate, said Alison Southwick, spokeswoman for the national office.

The national office does not set a specific formula or approach, she said.

Mitchell and other executives at the Southland branch did not return calls for comment on the salaries.

The salaries took a significant bite out of the budgets of the chapters, which were supported by members’ dues. The Southland chapter spent $5 million of its $7-million budget on compensation, according to the tax documents. The national office spent $10 million of its $16-million budget on employees.

Daniel Borochoff, president of the American Institute of Philanthropy, said the fact that Mitchell was paid vastly more than heads of other chapters raised a red flag. Mitchell got nearly twice as much as the president of the Chicago BBB, for example, who was paid about $206,000, according to the tax documents. The head of the New York chapter made about $170,000.

“Why is the L.A. person paid so much more than the other ones?” Borochoff asked. “Is he getting paid based on what kind of sales he can bring in?”

Southwick said the salary earned by Cox, national president of the BBB, was reduced to $300,000 when he took over the job last year, and was in line with the earnings of chief executives at nonprofit industry associations.

Mitchell also made far more than others in the Southland office. The senior vice president of the chapter, for example, got $97,000, according to tax documents.

“You fall off a cliff after you look at that salary,” said Ken Berger, current head of Charity Navigator, concerning Mitchell’s compensation.

Claire Rosenzweig, president of the Better Business Bureau of Metropolitan New York, was paid about $168,000 in 2008, about 59% less than Mitchell. She declined to comment on Mitchell’s salary, but applauded the investigation into the accreditation of the fake Los Angeles businesses.

“Accreditations must be earned,” Rosenzweig said. “If some people have made mistakes, I’m glad that it’s being investigated.”