Avoid Excessive Over-Charges or Unethical Business Practices

Overview: Being on your guard for excessive over-charges, even fraud, is more important than ever in our fledgling economy. No one has extra cash to spend needlessly, nor want to waste time with the wrong, unscrupulous specialist. Even recognized professionals can devise ways of increasing payment returns and cash flow, especially when you are in a bind. Some go as far as fraud, as deception can be easily concealed in some industries that have layers of hidden technical know-how, and when problems are difficult to prove as malpractice or negligence.

Nothing is more upsetting than receiving a statement showing hidden excess billing charges or cheated by an unscrupulous dealer. No one likes to be taken advantage of.

They may be justified or unjustified surprises, some tantamount to being classified as unethical “rip-offs”. Unfortunately, some may be accidental accounting duplications; others may be embedded surcharges that you were not aware that you would be charged for like hotel usage. Others may be fraudulent or deceptive professional services.

The worst types are “scams” where unscrupulous charges are created intentionally, or planted. Some of the most notorious industries that can create excess charges are: hotels, hospitals, auto repair, veterinarians, dentists, plumbers, website designers, and computer repair technicians.

Initially, be aware how you present yourself, inadvertently announcing your income status. Walking in with a Gucci bag, driving a BMW, prices can escalate.

Coming from a frugal, small Dutch Iowa town, we were taught monetary principles ingrained generations back. Immigrating to the United States in the 1800s, the Hollanders wore velvet breeches and conducted business with gold coins. They soon found they were cheated wherever they went, and finally, resorted to an “unassuming-frugal-chameleon survival code”.

In other words, they learned not do display their affluence, or they would be charged more with business transactions. Currently, remaining unpretentious, few drive new high end cars and do not flaunt wearing expensive apparel with flashy accessories.

There is something to be said for this dictum, because if you look foolhardy, or appear pretentious with careless spending habits, you become subject to excess service rates. There is bias with older people, teens, and women, who become targets.

Or, if the proprietor finds that you are in an "emergency situation", you can be targeted, and unethical business practices may come into play.

Auto repair establishments, whether in a city or out “in the middle of no-where” like rural Utah, Kansas, or Wyoming, will double charge if they think they can “get away with it”, especially when you lack alternative options and need your vehicle.

We recently had our automobile towed from a near city’s hospital to a local repair garage. Then, the same week, our second car had severe mechanical problems, but luckily, happening near the garage we routinely use, so we drove the car in, limping all the way. The proprietor, knowing we were in a health-state emergency situation, gave us excessive double-cost estimates to repair the two autos.

Refusing to be victimized, the next day I called several other places to compare repair rates, and had both cars towed, a second time, from one garage to the next. I saved nearly one thousand dollars by being alert and on the offense.

One of the most surreptitious situations is when you unwittingly trust an unethical dentist. With many small and midsize towns becoming filled with dental competition, some find unscrupulous ways to create cash flow. They know they can get away with fraudulent work, because their colleagues will not acknowledge investigative inquiries regarding their missteps to the State Dental Board.

For some time, I was fortunate to have a reputable dentist, who did fine, professional work. When he retired, I went to an acquaintance who I thought was highly regarded. Then, a minor traffic accident unfortunately loosened four front teeth. Subsequently, to stabilize the fragile teeth, my new dentist inserted four posts without root canals, which would create abscesses. Much successive dental work would be then required, perfect cash flow. Conversely, the expected consequential plan would back-fire. The damaged teeth all abscessed simultaneously, rather than piece-meal.

Was this dentist merely a bad dentist performing shoddy work? At first, it was hard to determine.

Local consulted specialists were obviously appalled, but had little to say. They advised that they had never seen anything like that before, as root canals for posts were basic Dental 101. I would have to go to another state to get a true evaluation for corrective surgery.

I was further dismayed when I consulted a Dental School regarding the issue, and overheard students joking about how easy it was to practice unethical dentistry without fear of reprisal. And, make good money doing it.

To avoid your own dental horror story, if you question any work at any point of a procedure, find a reputable dentist, or dental school, in another state for a complete evaluation. A local second-opinion dentist will not want to reveal or try to correct any faulty work. Remaining professionally bonded with their local colleagues, they will refer you back to the dentist who created the mess.

The best way to avoid hidden fees and unethical business services is to:

           

1)      Research the person’s or the business’ background and reputation. Go online. Talk to people (not their references who may be shams) who have used their services. Inquire within other businesses, like real estate firms, if they have conducted work with them.

2)      Be certain you are working with the authorized decision maker or owner when making a purchase or arranging for services.

3)      Up front, obtain second, even third opinions regarding the work to be done.

4)      Ask questions. Obtain firm, descriptive cost estimates in writing, and establish specific guidelines up front.

5)      Be aware of your surroundings; read body language.

6)      Do not sign any document without carefully reading the fine print.

7)      Carefully review all billing statements and inquire if you note discrepancies.

Fooled by False Indicators?

We are bombarded daily from a myriad of distorted signals, including unreliable financial, market and real estate reports, and blatant advertising. It pops up everywhere. We become wary.  Thousands of tweets beckon our way; most are promotional in nature.

Software has been designed for social media marketing, in addition to existing sales sites, to make purchasing decisions based upon your clicks, and the type of merchandise you buy. Soon this 3.0 technology will be on hand-held device apps.

Does your intellect challenge the validity of the onslaught of these intertwined signals? Or, do we become thick-skinned; ignore what we can, as we grapple with it? It becomes a sorting process.

Now, there is an additional, insidious layer that many of us do not take into account or even recognize; False Indicators. According to Kelley Services (May 5, 2010, New Wave of Independent Contractors Emerging Around the World), more than one quarter, 26%, of the work force is self-employed as consultants or professionals, including legal, medical, technical, software developers, automotive, and website developers. Not easily obtaining your attention, they can also obtain your business through sales pressure, or even unethically, insidiously, through slow, deliberate measures. And, to top it all off, in many cases, you will overtly request and welcome them.

Independent professionals need to earn a living and obtain strong cash flow. Here is where false indicators come into play.

Every day we encounter a myriad of small-to- large problems. The biggest mistake we can make is not trusting our own problem-solving capabilities.  You can find yourself distorting your own insightful signals. It is time to believe in your own intuition and what makes sense.

Something goes wrong. Frustrated, we seek help, those who seemingly will have an immediate answer and can resolve the problem.

Assistors will have one thing in mind; capitalizing on your problem, whatever it may be. Can we trust them? They will offer cordial assistance so articulately; you will not suspect their motives. The problem seemingly resolved, you will smile, and thank them gratefully, and make payment.

I will list some situations, that could have been most unfortunate, to say the least. The examples will be followed by some insightful, problem-solving suggestions.

1)      Block Banking Theft.  Having a check payment to use as a model, an interloper prints and forges a counterfeit check to your account, cashing it at an out-of-town bank. This type of occurrence is typical, according to the bank.

Counterfeiters focus on numerical figures between 2- and 7K, a typical down-payment amount. Some large banks have fraud departments that scan checks for irregularities. A suspicious check is red flagged, and bank check inspectors then study close signature replicas. If not caught, the counterfeit check will clear by 11 AM in most banks. In most cases, you will be held accountable, and will have to notify the police, and fill out a report, before the bank can proceed with an investigation. The problem will take your time, energy, and money.

Advice: Have on-line banking accounts and check your accounts daily at 7-8 AM. Print them out and make sure they are copacetic. If there is an unusual large, unidentified check in the “pending” column, notify the bank immediately, and go there if possible, to have it blocked. In the case where checks have been printed, that infers that additional false checks may be pending.

Subsequently, when this scenario happens, banks recommend that you immediately close your account and open a new one to block any continuing fraud. It is also a good idea to have an additional, auxiliary (decoy) banking account open, and ready to go; not only to monitor unfamiliar vendors for your own personal safety, but so you do not have the sudden work of opening a new bank account, and then wait several days to install special features, such as covering bounced check charges. Better still, pay cash for any risky expenditure, like yard maintenance by a new vendor. Then, additionally, set up” Theft Block” for your credit cards and banking accounts.

2)     Printer Jam. Printing jams are common occurrences, and we are used to removing stuck paper feeds. But, this time, it seems different. Impatient, we rush to conclusions, and consider calling the printing tech. Yet, if we do this, we know he will say “it is the fuser roller” and we need a new one. Be sure to consider the age and condition of your printer, and whether it worth the repair investment. If the tech has come out to your office, there is an on site charge, plus time and equipment. We gratefully thank him for promptly coming and his time.

Advice:  Take your time, checking all of the feeding avenues for jammed paper. Check for paper over-fill beyond the guidelines. Make sure it is inserted squarely, and does not have crimped edges that will buckle during the feed. Turn the printer off and reset. Be patient, and carefully reprint. Only then, decide whether you need the tech person @ $75 an hour.

3)      Malfunctioning Car Ignition: Nothing is worse than your car not starting during the summertime. You are stuck, a couple of miles from home. Fortunately, you have a back-up car key, and try that. It works. Is it an electrical shortage with the ignition?

You take your car to a reputable, popular mechanic to have it checked, as you do not want it to happen again. You trust him, are reassured that he can problem-solve the issue, so you stay on the wait list. Overloaded with work, he keeps your car three weeks, even checking in with him daily. Undoubtedly, the cost will be more reasonable than the auto’s recognized dealer.

Final verdict: bad electrical system. For 1K he can repair it. And, soon.

Advice: Ask yourself, is this believable? I did not want to be fooled into spending 1K. Yet, you need your car, right?  It has been a three weeks’ wait.

Stop and think: The second key started the car intermittently – sometimes it worked, and sometimes it did not. Unbeknownst to us, there was a small burr on the new key. Yet, could it be the car key that was causing the ignition problem? We took our auto to the dealer. He tried both keys, and the one made by the locksmith was faulty. Three weeks without a car, but we saved 1K. Consider having a second mechanic’s diagnosis, always double check locksmith’s back-up keys – don’t switch it around with the original key, or go to the car maker’s dealer, where the company offers support to problems. Or, best yet, use your own intuition in combination with others’ help.

4)      Jammed cell phone settings:  I fiddled with the cell phone call settings, and suddenly could not make calls or hear ones entering. Read and reread the manual, until it was memorized. Found no appropriate info. Went to the dealer.
Verdict: speakers have gone out. Of course, need a new cell phone, coming complete with a 2-year contract. I insisted that it was not the speakers, and I wasn’t going to “fall for the sales pitch.” The agent, admitting that every cell phone model has different settings and sequences, finally said, “You may be on to something – the problem is not listed in the manual. It is part of the cell phone architecture.”

He unlocks the setting.

Advice:  Don’t jump to false conclusions regarding your cell phone. The best thing you can do is “dink with it” or find a tech savvy young person to problem-solve the settings. Bottom line: do not fall for new cell phone 2-year contracts. If forced to replace your cell phone, take time to consider the amount of phone time, convenience needs, and the cost benefits before jumping into a new purchase. In the meantime, consider buying an inexpensive “paid minutes by card” cell phone at a discount store.

5)      Extensive Dental work:  Dentists dream of big repair jobs, especially those requiring root canals and crowns. That will offer income to cover overhead costs, for a European summer vacation, or a down-payment on a condo. If you have bridges or partials, any additional missing tooth will require new appliances with extensive work. To keep a loose tooth, a post may be inserted. Without a root canal, it will abscess. That will require more work, and a new design for your mouth. Complex work architectures trying to maintain teeth are rewarding for dentists, but time-consuming, exhaustive, painful, and expensive for you.

Advice: Dentists, even prominent specialists, will never reveal missteps and issues of their fellow colleagues. If you are having potentially expensive, large project, dental questions or issues, do one- or-both of two options: 1) Get advice and a thorough evaluation from a prominent dental school instructor-specialist. 2) Go to another state for a complete evaluation by one or two dentists. They will give you an honest opinion, because it is a different state, and they have no obligatory ties to the lack of ethics, or poor dental treatment quality of those practicing in another jurisdiction.

These are examples of false indicators that can encapsulate you. Try to resolve your problems through careful, insightful problem-solving, and by considering the following steps:

-          Deal with only reputable people. Ask around.

-          Do not jump to false conclusions.

-          Give your decisions careful consideration and thought.

-          Do not be easily duped; stick to your rationale.