Commentary and our Opinion: Mechanic’s Responds.com® News, LLC has just received an anonymous letter concerning Fred Elsberry and the Atlanta BBB.  It is interesting how the allegations in this letter are strikingly similar to the many stories we have been told concerning Fred Elsberry and his Atlanta BBB.    Mechanic’s Responds.com® News, LLC has been unable to verify any source associated with this anonymous letter, however, the similarities must at least be presented for everyone to draw their own conclusions.  This is Part III of our Special Investigation into the Atlanta Better Business Bureau.

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.

Commentary and our Opinion: Mechanic’s Responds.com® News, LLC has caught Fred Elsberry Lying about Mechanic’s Heating & Air Conditioning, LLC.  The BBB grading system is unfair.  Fred Elsberry’s BBB was caught changing Mechanic’s Heating & Air Conditioning, LLC’s grade from a “C” to an “F” overnight in order to jump on the band wagon of Tabloid Reporter attack dogs helped out, if not encouraged, by the Atlanta BBB.  Fred Elsberry must be some kind of magician – He now has changed Mechanic’s grade to a “B-”. I wonder whose hairs are standing up on their neck?

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

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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.

Source: http://abcnews.go.com/Blotter
Author: JOSEPH RHEE
Date: Nov. 16, 2010

Connecticut Attorney General Richard Blumenthal: “BBB Rating System is Unworthy of Consumer Trust”

“Right now, this rating system is really unworthy of consumer trust or confidence,” said Connecticut attorney general Richard Blumenthal in an interview that was broadcast Friday on 20/20. In an official demand letter sent to the national headquarters of the Better Business Bureau Thursday, Blumenthal called on the BBB to stop using its grading system, which he said was “potentially harmful and misleading” to consumers.

Read Attorney General Blumenthal’s 3 Page Demand Letter to the BBB!!

Cox defended the BBB accreditation and ratings systems, saying it was “not about generating money,” said the A minus grade for Hamas was a mistake.

Better Business Bureau: Pay for Play?

Yet, as part of the ABC News investigation, an ABC News producer with a camera was present as two small business owners in Los Angeles were told by Better Business Bureau tele-marketers that their grades of C could be raised to A plus if they paid $395 membership fees. Terri Hartman, the manager of a Los Angeles antique fixtures store, Liz’s Antique Hardware, was told only a payment could change her grade, based on one old complaint that had already been resolved. “So, if I don’t pay, even though the complaint has been resolved, I still have a C rating?” Hartman then read off her credit card number and the next business day the C grade was replaced with an A plus, and the one complaint was wiped off the record. In a second case, Carmen Tellez, the owner of a company that provides clowns for parties was also told she had to pay to fix her C- grade, based on a two-year old complaint that she says had already been resolved. The C minus became an A plus the very next day after she provided her credit card number for the $395 charge. “If I’m paying for a grade, then how are the customers supposed to really trust the Better Business Bureau?” she asked. Cox said the examples provided by ABC News were violations of sales policy and not a standard way of doing business. “The BBB is not operating fraudulently,” Cox said. In his demand letter to the BBB, Attorney General Blumenthal said, “I am deeply concerned that certain BBB practices threaten its reputation and effectiveness as a reliable resource for consumers.”

BBB media relations manager Allison Southwick said that the BBB had worked with Attorneys General across the country, including Blumenthal, to fight fraud. “We disagree with his characterization that BBB does not adequately disclose the fact that Accredited Businesses financially support BBB,” said Southwick. “However, we are always interested in hearing from our partners in consumer advocacy and are pleased to accept constructive feedback from his office and other consumer advocates.” “We have made good progress in working with his office on these issues, and anticipate that we will satisfactorily address his concerns,” said Southwick.

Source: http://abcnews.go.com/Blotter
Author: JOSEPH RHEE and BRIAN ROSS
Date: Nov. 12, 2010

Watch the 20/20 Investigative Report Now Below!

The Better Business Bureau, one of the country’s best known consumer watchdog groups, is being accused by business owners of running a “pay for play” scheme in which A plus ratings are awarded to those who pay membership fees, and F ratings used to punish those who don’t.

To prove the point, a group of Los Angeles business owners paid $425 to the Better Business Bureau and were able to obtain an A minus grade for a non-existent company called Hamas, named after the Middle Eastern terror group.

“Right now, this rating system is really unworthy of consumer trust or confidence,” said Connecticut attorney general Richard Blumenthal in an interview to be broadcast as part of an ABC News investigation airing tonight on 20/20.

In an official demand letter sent to the national headquarters of the Better Business Bureau Thursday, Blumenthal called on the BBB to stop using its grading system, which he said was “potentially harmful and misleading” to consumers.

“The BBB accreditation and the BBB ratings systems is not about generating money,” said BBB national president and CEO Steve Cox. He said the A minus grade for Hamas was given in error. “Plain and simple, we made a mistake,” Cox told ABC News.

Errors seem to abound at the Better Business Bureau. As reported by an anonymous blogger the BBB also awarded an A minus rating to a non-existent sushi restaurant in Santa Ana, California and an A plus to a skinhead, neo-Nazi web site called Stormfront.

Each listing cost $425.

“They ran the credit card and within 12 hours they were an approved, accredited member,” said the anonymous blogger, who runs a site called bbbroundup.com.

“They’re more interested in the money than their credibility,” he said.

The BBB’s Cox said the three listings were all mistakes made by sales people.

“That’s an inaccurate statement that business people are able to buy A’s,” Cox said. “We have more than 500,000 non-accredited businesses who have A ratings,” he added.

Better Business Bureau: Pay for Play?

Yet, as part of the ABC News investigation, an ABC News producer with a camera was present as two small business owners in Los Angeles were told by Better Business Bureau tele-marketers that their grades of C could be raised to A plus if they paid $395 membership fees.

Terri Hartman, the manager of a Los Angeles antique fixtures store, Liz’s Antique Hardware, was told only a payment could change her grade, based on one old complaint that had already been resolved.

“So, if I don’t pay, even though the complaint has been resolved, I still have a C rating?”

Hartman then read off her credit card number and the next business day the C grade was replaced with an A plus, and the one complaint was wiped off the record.

In a second case, Carmen Tellez, the owner of a company that provides clowns for parties was also told she had to pay to fix her C- grade, based on a two-year old complaint that she says had already been resolved.

The C minus became an A plus the very next day after she provided her credit card number for the $395 charge.

“If I’m paying for a grade, then how are the customers supposed to really trust the Better Business Bureau?” she asked.

Cox said the examples provided by ABC News were violations of sales policy and not a standard way of doing business.

“The BBB is not operating fraudulently,” Cox said.

In his demand letter to the BBB, the Connecticut attorney general said, “I am deeply concerned that certain BBB practices threaten its reputation and effectiveness as a reliable resource for consumers.”

Allison Southwick, media relations manager for the BBB, said that the BBB had worked with Attorneys General across the country, including Blumenthal, to fight fraud. “We disagree with his characterization that BBB does not adequately disclose the fact that Accredited Businesses financially support BBB,” said Southwick. “However, we are always interested in hearing from our partners in consumer advocacy and are pleased to accept constructive feedback from his office and other consumer advocates.”

“We have made good progress in working with his office on these issues, and anticipate that we will satisfactorily address his concerns,” said Southwick.

Better Business Bureau Grading System

The Better Business Bureau, a non-profit group that began 98 years ago, instituted its A plus through F grading system just two years ago, replacing a “satisfactory/unsatisfactory” ratings system.

One of the first to raise concerns about the new grading system was New York Congressman Anthony Weiner. Weiner was investigating complaints to his office about the popular precious metals dealer Goldine. Some customers had alleged they were ripped off after responding to Goldline’s television ads, which appear in heavy circulation during conservative talk radio and television programs.

Goldline responded to Weiner’s criticism in part by pointing to the stamp of approval the company had received from one of the nation’s most respected consumer groups.

“We are proud to be rated A+ from the Better Business Bureau,” Goldline VP Scott Carter said at a congressional hearing convened by Weiner in September.

Weiner told ABC News he considered Goldline’s A plus grade to be suspect.

Weiner and other critics say they believe the BBB has used the new grading system as part of an extensive tele-marketing campaign to increase membership and revenue.

Ritz-Carlton, Wolfgang Puck Get Fs

An ABC NEWS examination of filings with the federal government revealed that at least 25 of the Better Business Bureau’s top officers had salaries in excess of $100,000.

The head of the Los Angeles Better Business Bureau, William Mitchell, was paid more than $400,000, according to the Better business Bureau.

“I think the Better Business Bureau changed course and lost its way by adopting a system of pay to play that maybe enhanced its revenues but also greatly diminished its credibility and honesty,” said attorney general Blumenthal, who was elected to the United States Senate from Connecticut last week.

“It’s very troubling and it could be illegal because the failure to disclose to consumers could well be deceptive and misleading,” he added.

The ABC News investigation found numerous examples of well-known companies that are not members of the Better Business Bureau being branded with F grades, often apparently based on scant evidence or a small number of complaints.

The five-star Ritz Carlton Hotel in Boston was given a F rating after only two complaints.

“A million customers served, two complaints resulting in an F rating, seems to be somewhat unusual, to say the least, ” hotel general manager Erwin Schinnerl told WCVB-TV in Boston.

Celebrity chef Wolfgang Puck told ABC News that parts of his food and restaurant empire have received an F grade because he refused to pay to join the Better Business Bureau.

“You know, if you become a member, you’re sure to get an A, but if you don’t pay, it’s very difficult to get an A,” said Puck, who has been a regular on the ABC News program “Good Morning America” since 1986.

“I think where you have to join an organization to get a good grade is wrong,” Puck said.

Source1: http://www.ctwatchdog.com
Source2: http://www.bbbroundup.com
Date: Jul 21, 2010
Author: George Gombossy

The Southland Better Business Bureau in California today admitted that it made a mistake by accrediting a fake company called Hamas and giving it an A- rating, but insists that it does not damage its credibility or that of the Better Business Bureau.

Unidentified critics of the BBB’s letter grade system – to show how high grades can be purchased – signed up two non-existent businesses, paid $425 for each to the Southland BBB (Los Angeles area) and both businesses were immediately up on the BBB.org web site as accredited businesses with prized A- ratings.

Normally, a new business seeking to get on the BBB.org site without paying the annual accreditation fee would get a C or slightly better rating, never an A. It takes cash for that to happen.

One of the sites was called Hamas – an obvious reference to the terrorist organization in the Middle East – and said on the BBB site that its purpose was to provide “educational programs for troubled youth”

The BBB published on its site the following:

Our opinion of what this rating means:

An excellent rating. A company with this rating may not rate higher because of a greater number of rate-lowering factors, but we do not consider them to be factors that would likely adversely affect consumer transactions.

“Jimmy Rivers,” a former journalist and now a California businessman has been writing about the Better Business Bureau’s letter grading system for two years – like I have – and disclosed the Hamas incident earlier this week on his website www.bbbroundup.com.

Today I called Gary Almond, vice president at the Southland BBB organization – the largest in the country.

Almost said his staffers got taken.

“They mislead us,” he said, insisting that proof that the BBB will give its A rating to anyone with a phone and a credit card does not damage its credibility.

“We have systems that check” to make sure businesses are legitimate, he said.

In this case, he said, his staff simply made a mistake. He said his staff did call the telephone number the business provided to make sure it existed.

He also said the money is being returned to the people who paid for the accreditations, which were taken down yesterday from the website.

Almond had to rush off so he did not have an opportunity to explain why Starbucks, which did not pay to get accredited, has much lower grades for its stores in California from the BBB. But if you go to www.bbbroundup.com you will get Jimmy Rivers’ answer. By the way, that is not his real name. He keeps that confidential to protect himself and his friends from retaliation from the BBB, which has been trying like crazy to learn his identity.

“So, where were these standards when the BBB accredited and welcomed the terrorist group HAMAS as a member?,” Rivers asks in his column.

“Now in case one might think this an isolated instance, be assured it’s not. A group of angry and frustrated businesses across the United States and Canada have decided to fight back. The registering of these BOGUS BUSINESSES has been ongoing for quite some time. The HAMAS registered with the BBB does not actually exist, except as a member of the Better Business Bureau. Here’s another Bogus Business that was awarded BBB accreditation from back in June of this year. Whatever happened to the review and acceptance that’s supposed to be done by the local Board of Directors of the BBB?”

“When I first started my investigation I found pretty early on that they were a corrupt and flawed organization. Never in my wildest dreams did I comprehend how fully invested the Better Business Bureau was in greed, hypocrisy and arrogance. The fact that anyone can call up the BBB and wave a credit card in front of them and get an “A” grade is just plain evil. It certainly exposes their grading system as being totally useless.”

“Unfortunately, it is the consumer and the small business who suffer from the BBB’s greed. My take is that the BBB should be shut down. Barring that, they need to immediately pull all grades from their websites and put right all that they have done wrong,” Rivers said.

In an editorial on his website, Rivers said expect more disclosures.

“And don’t forget readers, bbbroundup knows of dozens and dozens of other bogus businesses that have ALREADY received their accreditation and grade from various BBBs in the US and Canada.”

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?