Like many young people, John was looking for a way to pay off his personal debt. He thought that “free money” seemed a little too good to be true but he decided to call just to check it out.
John spoke with a government representative named Alec. He initially felt uncomfortable with the idea of giving out his banking information, but it was $65,000. And Alec said that they couldn’t take the money out of the grant because grants aren’t supposed to be used for that…
A book listing different government programs and addresses where you could apply for a small government grant…information that is available at no cost online and at public libraries. John didn’t even qualify for any of the grants listed in the overpriced book.
Organizations do not usually give out grants for personal debt consolidation, or to pay for other personal needs. Grants are usually given only to serve a social good, such as bringing jobs to an area, training under-employed youth, preserving a bit of history, etc.
If you feel you may be eligible for a government grant, be sure to go about it in the proper manner.
GOVERNMENT GRANT SCAMS
John saw this classified ad in his local newspaper.
The Phone Call <ul><li>[Alec] Hello, my name is Alec Watson from the US Government Grant Processing Center. And you have been approved to receive a $65,000 grant. We would like to verify your information. Do you live at 938 Main Street? Do you still work for Mike’s Automotive? Can you please verify your bank? [John] North Island Financial Credit Union. [Alec] Can you tell me what your bank routing number is? John, we can process your $65,000 fully free grant. We can automatically withdraw the processing amount from your back account. Do you think that a cost of $257 is worth receiving $65,000? </li></ul>
John decides that the payout is worth giving the information and so the $257 is taken directly out of his bank account.
This is what John received for his $257. Government Grants 2008
No government simply gives money away to individuals. Anyone who tells you differently has larceny in his heart. If you give him your bank account number, he will soon have your funds in his pocket.
Regarding the government grant scam, keep these three points in mind: <ul><li>The U.S. Government does not telephone people to offer them grants. </li></ul><ul><li>Grants are never guaranteed, nor are they issued for no apparent purpose, so you should be extremely suspicious of anyone who uses the words "free" or "guarantee" excessively. </li></ul><ul><li>Real government grants require extensive documentation with great attention to detail. There is nothing simple or painless about securing a government grant. </li></ul>
<ul><li>Go to your local library and request grant information. Visit the governments official websites: Catalog of Federal Domestic Assistance http:// www.cfda.gov and www.grants.gov . It is generally not necessary to pay someone to help you through the process and most agencies provide assistance at no charge in filling out forms and explaining what it takes to qualify. </li></ul>
If you have any questions about government grant scams, please contact your BBB. 5401 Vogel Rd. Suite 410 Evansville, Indiana 47715 812-473-0202 or 800-359-0979 [email_address]