OBAMA GRANTS: BEWARE OF THE SCAMS

A good lesson in life is to always read the fine print. Before you ever sign up for anything or give your credit card out, be sure to search for the 'terms and conditions" and read them. This has never been more clear than the situation with Obama government grants this year.

The FTC decided to come in and stop some of the online ads and companies that were pitching "Obama Grants". You can read about the story here at the FTC website. There were many grant companies that were using a picture of President Obama to lure you into thinking there were tons of grants just for you because he was elected. Where they went really wrong is in what they were claiming and what they put in the fine print.

These grant specialists claimed that there were large amounts of dollars available to you and they would (not could) help you get some of them. All you had to do was give them your credit card to pay for the small shipping fee and they would send you a CD which would explain everything. What a good deal right? Only $1.97 or some other small amount and you could learn how to get a grant from Obama and the government that would never have to be repaid.

The fine print that you had to click through to see was intimidatingly long just like any fine print it seems now days. The tricky part outlined that they would give you a varying degree of a free trial (anywhere from 3 to 7 days) and if you didn't cancel by then you would be charged a monthly fee of $49.95 or $79.95 or some other hefty amount.

People looking for these Obama grants were doing so because they needed money. Much to their surprise and shock, soon after they ordered these seemingly harmless kits their credit cards were being charged the bigger charges and they had to scramble to get the kit cancelled. Additionally, many people had an extremely difficult time cancelling the kit and many had to have their credit cards cancelled to stop the monthly charges.

Should the FTC have jumped in or is it people's responsibility to read the fine print? This is a question that is up for debate as this is a free country and people should be responsible for their actions and if they never read the fine print, then perhaps they have to take some of the blame. However, there is no judgement being made here in this post other than to say that you need to be careful when you give your credit card out.

Obama grants scams are still going on but there are fewer of them out there. It seems the grant process is a confusing one that many people feel they need help with. Even though the federal grant application process is free, some companies can make money by guiding you through the process and helping you apply. You have to remember that no company can guarantee you will get a grant and you have to read all the fine print to make sure you understand what you are signing up for. Obama grants scams are still alive and well and you need to be on your guard so you are not fooled by one of them.