| Do you like being taken advantage of? I | | | | The key point is that you shouldn't |
| sure don't. In fact, I hate it! Worse, | | | | trust a product just because it has a |
| it seems like it is happening more and | | | | familiar name associated with it. Do you |
| more. Now, more than ever, it is | | | | homework and compare it to its |
| buyer-beware. Read on for some specific | | | | competitors. |
| examples and to learn how you can | | | | We can be taken advantage of in other |
| protect yourself. | | | | ways. I recently responded to an offer |
| Trust is involved when we buy a | | | | for a 'free credit report'. It was |
| company's products of services. | | | | provided by one of the largest credit |
| Companies spend millions of dollars a | | | | reporting companies in the world. Surely |
| year in advertising trying to gain our | | | | it could be trusted. |
| trust. Employees, especially | | | | Nope. Buried in the fine print is that |
| salespeople, are trained in what to say | | | | fact that anyone who receives the 'free' |
| to build our trust in them and their | | | | credit report is automatically signed up |
| company. | | | | for their credit monitoring service. |
| When I take the bait and find out that | | | | Until you call and cancel, your credit |
| the product or service doesn't meet my | | | | card is billed each month. Since I used |
| expectations, I feel my trust has been | | | | my debit card, I didn't notice the |
| violated. I've been taken advantage of | | | | charge right away. The lesson? Be |
| just so the company could make another | | | | careful when signing up for 'free' |
| dollar. It used to be rare. Now it's | | | | offers, read all the fine print, and |
| common. | | | | don't use your debit card for online |
| Take AARP for example. Founded as the | | | | purchases. |
| American Association for Retired | | | | Lastly, I recently bought an electronic |
| Persons, it quickly became the largest | | | | book online as part of some research I |
| defender of senior's rights. It is still | | | | was doing on Equity-Indexed Annuities. |
| one of the most powerful lobbying groups | | | | The sales pitch explained that |
| in Washington. Its members trust it to | | | | 'shocking' truths about annuities would |
| act in their best interest. | | | | be revealed. It's easy to find people |
| That's why so many of them were | | | | promoting annuities and I was looking |
| surprised when AARP suddenly changed | | | | for an opposing view. This seemed to be |
| course and supported the Medicare Drug | | | | it. |
| Bill. AARP even spent $7 million | | | | When I went to purchase it I learned |
| advertising their support! Members were | | | | that the information I was looking for |
| stunned--only 18% of them supported it. | | | | wasn't included in the 'shocking truths' |
| What could have caused this trusted | | | | and that I had to upgrade to learn those |
| voice of seniors to stop acting on their | | | | secrets. The entire package cost $97, |
| behalf? I'm not going to judge motives, | | | | double what was initially advertised. |
| but isn't it interesting that AARP | | | | Worse, the material ended up being a |
| stands to make millions of dollars | | | | sales pitch FOR annuities! I read the |
| selling its new prescription drug | | | | terms and conditions. They sell your |
| insurance called MedicareRX? Hmmm. | | | | information to list brokers and |
| AARP receives more money from licensing | | | | insurance agents. One of the 'bonus' |
| the AARP name to products and services | | | | services was the ability to talk with a |
| then it does from membership dues. | | | | live person about your situation. In |
| They're becoming more of a marketing | | | | reality, you would be connected to an |
| firm then a lobbying firm. Are their | | | | insurance salesperson and received |
| products truly in their member's best | | | | biased advice. |
| interest? Not always. | | | | It shouldn't be this way. We shouldn't |
| AARP mutual funds are a perfect example. | | | | have to constantly keep our guard up to |
| Managed by Scudder, not a single one has | | | | protect ourselves. But we do. Be careful |
| performed in the top 20% of its | | | | who you trust--especially a financial |
| category. Those who invested because of | | | | salesperson. The people and companies |
| the AARP name have forgone thousands and | | | | that provide the products and services |
| thousands of dollars of growth due to | | | | you use should repeatedly earn your |
| low returns--while AARP has pocketed | | | | trust. If not, they don't deserve your |
| tens of millions of dollars. | | | | business. |