Magazine sales raise red flags

Maybe now would be a good time to hold off on new magazine subscriptions.

At least those sold door to door.

The Better Business Bureau sent out regional and national warnings last week about a rite of summer – shady businesses that use young people to sell magazines door to door under faulty premises or without delivering on the subscriptions.

The BBB said in a news release that it had received complaints in 46 states about 50 companies operating in the door-to-door sale of magazines. In most cases, the magazines didn’t show up, though the BBB reports instances of high-pressure tactics and other problems.

The Washington attorney general’s office has issued a warning about one company, Fresh Start Opportunities, which claims money from subscriptions will be used to help young people get a “fresh start on life.” It’s not registered as a charity, it has failed to respond to the BBB over scores of complaints, and it earned a grade of F from the organization.

The companies often use young salespeople, working without a license, and the sales pitch often claims that proceeds from the sales will go to help pay for schooling, to a charity or to support troops in Iraq. The BBB said it considers both the salespeople and the customers victims.

Before you buy anything sold door to door, get information about the company and check its record with the BBB, at www.bbb.org/us/consumers. If the person claims to represent a charity, see if it’s registered with the state at www.secstate.wa.gov/charities or (800) 332-4483. (Idaho doesn’t require charities to register.)

Stick to the script

A few years ago, the Chicago Tribune published a script for readers to use when trying to negotiate a lower credit card rate.

The script, strikingly simple, proved effective – a reporter for the newspaper using it this year got a 24.99 percent rate dropped to 9.99 percent.

It goes like this:

You: “Hi. Can you tell me what my current interest rate is?”

Operator: “Your interest rate is X percent.”

You: “Hmmm. I’d like you to lower my interest rate now, please.”

(Don’t say another word until the operator makes a move.)

Operator: “OK, I can lower it to X percent.”

You: “That’s not enough, but I’ll take that for now. Thanks. I’d like to tell your supervisor how helpful you’ve been. Could you pass me over?”

If you get the supervisor on the line, mention that the operator helped you, then repeat the script. In a few months call back and do it again.

There is a potential pitfall: Your FICO score could be dinged if your credit issuer considers that an application for credit and pulls your credit report and score.

So you might ask, “How much can you lower my rate without pulling my credit score?”