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Review content:
The Anatomy of A Sub Sub Sub Scam:
I do financial investigative research (bad banks) so work with a network of ppl all over - sharing information.
Last year, I wrote a report to the Feds on the BBB giving A+ ratings to banks like GEMB, (notorious for disreputable financial practices) and other banks like them. (Their BBB A+ rating tends to mislead consumers). About a month ago, a colleague in CA relayed an interesting GEMB-related story via Gilmore Air! How? Her friend was getting his heating/air system's annual check up done by Gilmore. An A/C tech walks in and within minutes, she relates: ""an impressive con job revs up"".
I'm curious as to how these things work as they go down, instead ""after the fact"". Right off, ""techie"" sez her friend ""needs a new machine"", and it's gonna cost over 10 grand, OK fair enough. Now comes the part where I get interested. The ""tech"" can't say what ""systems"" they need, except they will be ""Lennox"" (of Richardson TX). Techie sez he can pre-qualify for financing. ""Friend"" looks at her, she winks and says ""be careful now"". So, SOME of his personal financial information is given, passed over the phone by the tech to what he says is ""GE"" financing. A quick check online while techie's on the phone confirms the worst. Not just any GE financial arm, some of which were very reputable, it's GE Money Bank (GEMB).
Now this is blogworthy in our world, as GEMB is a bank notorious for thousands of unfair credit practice reports, subprime scamming etc. How the BBB manages to give them an A+ rating while the Senate had them in their crosshairs is truly impressive!
What most ppl don't know is the GEMB ""home improvement credit cards"" carries interest rates of 26 to 30 percent. Wowee! The ""tech"" didn't tell them that GEMB is known for Unfair/Predatory Lending Practices, or the credit terms they were getting into, which ""they're ought to be a law""... and there is. TRULY bad is all that personal ID information given over the phone - is what GEMB does sell off - to just about anyone - whether they approve you or not... unless you call to stop them. Bottom line, our homeowner is denied (he's not that stupid! :-)
I told them to ask for the legally required credit decline letter. It was reported that Gilmore Air is unfamiliar with the FCRA. Woweee again!
It's important to note that down-down-downstream of these horrible financial rip-off firms (that screwed so many hardworking taxpaying citizens, that the Obama Admin is trying to shut down yay!!!) ... are the mom and pop shops like this one, that you want to trust the heck of when they walk into your home.
A company today never does business in a vacuum, and their reputation is tied to their selected chain of stakeholders: co-vendors, contractors, subcontractors, journeymen, financial houses, it chooses to do business with... and gets you, the heating and air conditioner big bucks consumer, involved with. Gilmore==Lennox==GEMB. Period.
So. YOU need to be careful. As NO! NO one I know will buy a large appliance at 26% to 30% interest if so told without checking out other options. NO! This homeowner was not so told! NO! It is ""immoral"" - to send an A/C tech out with the primary mission of signing you up for a 26% 30% GEMB Home credit card! And trying to sneak over to your neighbors!
It's important because this isn't like walking into Home Depot and applying for their Home Improvement credit card at their cash register... this is where the guy (or gal) is in your home, messing with your property, and, ummm, well, you know .... ""yep, indeedy, our oldie but goodie A/C heating and air system, the second largest purchase I make after my home or car, might have lasted a few more years, but after this little Home Improvement visit, NOT!""
(Yes, a longer form of this article is on my blog, no I can't give you the link here that's how citysearch works).
Cons: Involved with GEMB known for disreputable practices
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