Beware pitches to work at home

The classified ad offer looked like the perfect answer for Ann Collier of Gorham. “Earn cash by helping doctors. Process medical claims from home. $20-$40/hour potential. Computer & modem required. We train,” the ad read. Ann figured she could earn extra money working at home while caring for her children. So she called the toll-free number and was told that for $377, she would get everything she needed to launch a lucrative medical-billing business from home, including a software program and the names of doctors who wanted the service. If she wasn’t completely satisfied, she could request a full refund within 30 days.

A year later, she hasn’t made a penny, her money is gone, and so is the company. And she’s not alone. The Federal Trade Commission receives hundreds of complaints every year about fraudulent medical billing opportunities. One promoter claimed that for $325 to $495, a person could make $50,000 a year running an at-home medical-billing business. But most who responded didn’t earn a dime.

As quickly as the FTC puts these companies out of business, others take their place. The schemes are advertised on the Internet or in classified sections of newspapers or shopper’s guides, often alongside legitimate “help wanted” ads for hospital medical-claims processors. The ads often promise substantial income for full- or part-time work with “no experience required.”

Those who respond get a high-pressure sales pitch promising big bucks for a small investment. But the chances of making serious money are slim to none because newcomers to the medical-billing market, with no experience and no contacts, face fierce competition. Once consumers buy into the plan, all they get is an out-of-date database of doctors who don’t need billing services, a sample letter, and a useless money-back “guarantee.” Few ever get a refund, and if they do, it’s only after repeated phone calls to the company or complaints to their credit card companies, government agencies, or consumer assistance agencies.

Northeast COMBAT offers this advice if you are tempted by a work-at-home offer:

. Ask the company to provide names of their customers. Call and interview a few about their experience. But even then, be wary; the references may be “shills,” people who are paid to endorse the company.

Call local medical-claims processing offices or local doctors. Ask them about the medical-billing field. How much of a need is there for this type of work? How much work does medical billing entail? What kind of training is required? Do they know anything about the company you are considering?

Contact the Maine Attorney General’s Office or COMBAT to see whether any unresolved complaints about the business opportunity or the promoter are on file. Be aware, however, that the absence of complaints doesn’t necessarily mean the company is legitimate.

Consult an attorney, accountant or other business adviser before signing any agreement or paying any money.

Because there are so many fraudulent companies that play the work-at-home scam game, keep your eyes wide open and your wallet shut tight until you are absolutely sure of what you will get for your money. Better yet, check out the classifieds and hit the road for interviews with local businesses.

For Ann Collier, it was a sad $377 mistake. She never got her money back because COMBAT and the numerous state and federal agencies we contacted were never able to locate the business. The toll-free number Ann called had been disconnected, and the company address is now vacant space in a California mall. COMBAT may often be able to do wonders when all others have failed, but we can’t win ’em all.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast COMBAT (Consumers Of Maine Bringing Action Together), Maine’s membership-funded, nonprofit consumer organization. Individual membership $25, business rates start at $125 (0-10 employees). For help and information write: Consumer Forum, Bangor Daily News, PO Box 1329, Bangor 04402-1329.