AVOID GRANT SCAMS - part 1

The very idea of all of the ads that tell you that they have free grants to offer sounds too good to be true, and the fact is that in some ways it is. The ads claim that you will qualify to receive a grant for your business. They say your application is guaranteed to be accepted, and you never have to repay the money.

There is of course a catch that they dont mention. The Federal Trade Commission (FTC), the nation's consumer protection agency, warns you that money for nothing grant offers often are a scam: the grant isn't free, it isn't guaranteed, and often, it isn't even available to you.

Some people actually market free grants in classified ads, which begin by inviting consumers to call a toll-free number. If you call, a representative of the company will ask you some basic questions to determine if you qualify to receive a grant, and some of these questions include:

1. What's your address?
2. How long have you lived at this address?
3. Do you have a bank account?
4. Do you have at least 0 in your account at this time?

Next thing you know you are being asked to hold on the line while your eligibility is determined. After she congratulates you on your eligibility, she will ask you to pay a one-time processing fee that can range from anywhere from 0 to 0.

If you question this fee, you will then be reassured that you that the grant is guaranteed, and that if you're not COMPLETELY satisfied with your grant, you'll get a refund. However, she won't offer to tell you all the conditions for a refund.

The processing fee is said to cover finding a grant source and sending you the appropriate application package in the mail. However, you won't receive an application or a source. What you will get is a list of agencies and foundations to which you must write and request an application. This information is available for free at any public library or on the Internet.