Government Grants - Beware of Scams

As the saying goes: "Buyer Beware". If you see ads claiming you qualify to receive a "free grant" for education, to start a home business or to payoff unpaid bills, be wary. Scam artists will claim your grant application is guaranteed to be accepted and approved, and you never have to repay the money. But the Federal Trade Commission (FTC) warns that these grant offers are often a scam. The grant isn't free, nor is it guaranteed, nor is a refund.

According to the FTC, some scam artists market "free grants" in classified ads and even provide a toll free phone number. Here's an example of what happens when you call:

A company representative asks non-threatening, simple questions to supposedly determine if you qualify to receive a grant. The representative then acts as if he/she is checking your eligibility, and then congratulates you as being eligible. But for you to get the grant information from them, they will charge you a processing fee. Although they will promise you that the grant is guaranteed or you can get your money back, the truth is far different.

They will tell you that the processing fee is for finding a grant source and sending you the appropriate application package in the mail. But you won't receive an application or a source. Instead they send you a list of agencies and foundations which you must write and request an application. In order to get your refund, you must apply to; and be rejected by, all these agencies within 90 days.

Most grantors don't award grants to individuals for personal needs. Generally grants are to serve mankind and communities as a whole, such as job expansion, training under-employed youth, preserving history, funding charities, art museums, or for researching medical issues. So, even if you're in a financial hardship, or you may be an unwed mother, a single parent, a minority, etc, you're not likely to approved. And you may as well forget about getting a refund from the grant "broker" because the conditions for a refund are nearly impossible, requiring you to apply at every grantor on the list they provided to you and be denied by each resource within 90 days. If even one resource doesn't reject you within the first 90 days, you won't get your refund, nor will you get it back if the rejections are past the 90 day requirement.

If you're thinking about applying for a grant, remember that the applications are available to you for free and that anyone who guarantees you a grant is likely to be interested in their own financial gain, not yours. If you think you may have been a victim of a grant scam, file a complaint with the FTC by visiting www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261.

Don't fall for grant scams. Use the free resources available to you at public libraries, on the internet, and at www.creditfederal.com/government-grant.html

Article provided by Toni Phelps of Credit Federal. You can access grant resources 100% free at http://www.CreditFederal.com

More Personal Finance Daily stories MarketWatch - 14 hours ago "A good contrarian, though, will note that just when things look darkest is where we usually find the turning point." We're just getting started. ...

Mutual Funds & Personal Finance Investor's Business Daily (subscription) - 15 hours ago BY PAUL KATZEFF In a troubled market, the defensive consumer staples sector has outperformed all others. That's boosted Fidelity Select Consumer Staples ...

Yodlee(R) Announces Availability of Over 11000 Financial Data Sources MarketWatch - Nov 18, 2008 The Yodlee Data Engine powers Yodlee's most recent innovations, including Yodlee PersonalFinance(TM), (the industry leading personal finance management ...

Personal finance: Adding insult to injury, here come capital gains Fort Worth Star Telegram, TX - Nov 15, 2008 AP Mutual-fund investors reeling from losses in the stock market may face another hit next month: capital gains tax liabilities on their sinking funds. ...

MONEY MAIL - BEST FOR PERSONAL FINANCE Daily Mail, UK - 7 hours ago Money Mail has won a high-profile award for its unsurpassed coverage of personal finance. The Daily Mail was named newspaper of the year at the Personal ...

New Zealand Herald

Business writer David Chaplin blogs on personal finance New Zealand Herald, New Zealand - Nov 17, 2008 I was at a conference last week where a woman stood up and blamed the press for creating the global financial crisis (or "the GFC" as insiders now refer to ...

Personal Finance: Payroll deduction is convenient way to get coverage The Daily Advertiser, LA - Nov 17, 2008 A reflection of the changing economy of the last decade can be found in the changing attitudes many people have toward life insurance. ...

Personal Finance Roundup The Consumerist, NY - Nov 17, 2008 By freemoneyfinance , 4:22 PM on Mon Nov 17 2008, 18 views 4 Common Resume Blunders [Yahoo Hotjobs] "Keep yourself in the running by avoiding these resume ...

Yodlee supports over 11, 000 financial data sources Ecommerce Journal, MA - 12 hours ago It powers Yodlee recent innovations that includes Yodlee PersonalFinance (the industry leading personal finance management solution) and Yodlee PayItAll ...

Personal Finance: The importance of savings Business Mirror, Philippines - Nov 16, 2008 The global financial crisis has hit hard consumers in many countries. In the US, retail sales fell for a fourth-straight month in October, ...