National Small Business Alliance

This company is located out of our service area. If you wish to obtain a report or file a complaint please contact BBB of Metro Washington DC & Eastern Pennsylvania ~WWW: http://dc-easternpa.bbb.org ~Email: info@mybbb.org ~Phone: (202)393-8000 ~Fax: (202)393-1198 ~1411 K St. NW 10th Floor ~Washington DC 20005-3404 ~~This company solicits small businesses nationally via automated solicitations telemarketers and e-mail for membership in their organization. They claim to offer benefits such as business discounts consulting services and an $8000 business credit line. The offer is also presented as a 30 day "free" trial membership as a buyer incentive. They ask for bank account or credit card numbers advising businesses their accounts will not be debited until after the 30 day trial period. ~~We believe this company's marketing methods are deceptive and misleading. Automated solicitation calls are said to advise business owners they have been approved for a platinum credit line of $8000. They are instructed to call to activate the credit offer. Upon calling to activate they find that NSBA membership is a requirement. This company is not a lender therefore cannot pre-approve or grant credit. The offered "credit line" is not a loan for any purpose as represented or implied but rather is collectively comprised of coupons discounts and offers made by participating vendors to purchase goods and services such as computers or travel arrangements using credit terms. ~~The company fails to disclose that participating merchants have terms and conditions which apply to credit purchases made by members. For example one offer is for up to $5 000 in credit for travel. However the credit line is only available for pre-configured vacation packages for two persons with departure dates and cities pre-set by the company. Any changes to the itinerary upgrades car rentals additional travelers additional days or changes in departures can not be financed with the credit line. An undisclosed deposit amount must be made before booking and any additional fees must be paid 30 days prior to departure date. Only one vacation per term (meaning membership term) may be financed. Another offer is for up to $3 000 in credit for a computer. The offer is good for only pre-configured computers and may not be changed or altered in any way during the term of the agreement unless agreed to by the seller. A deposit of 20% to 30% of the purchase price is required to obtain financing for balance of the computer purchase. In addition while any item is being financed the borrower must maintain membership in the club at the rate of some $7 per year which is renewable annually unless otherwise cancelled. Further there exists little information on the company's website or in advertising materials about the specific configurations and total costs of the computers. ~~We routinely recommend that businesses should insist on reviewing all details of any offer before making a buying decision. A membership buying club may offer discounts on merchandise and or services to its members; however the membership fee may amount to much more than you might actually save by using the membership. For example if a member receives a 25% discount on merchandise in order to recoup the $500 membership fee a member would need to buy $2 000 worth of merchandise. The advertised "savings" may apply to "suggested retail price ” which is an amount generally much higher than the normal selling price. Do comparison shopping. A discount store could offer the item at the same price as the buying club and not charge a membership fee.