November 17, 2004

            Lansing – A Florida-based company that claims to assist consumers in obtaining government grants faces legal action for misleading sales tactics in violation of the Michigan Consumer Protection Act and telemarketing provisions of the Home Solicitation Act, Attorney General Mike Cox announced today.

            In a Notice of Intended Action (NIA), Cox alleges that Consumer Grants USA uses unfair and deceptive business practices by misleading telemarketing calls that promise government grants of $8,000 to $25,000 if consumers pay a $239 "processing fee." Consumers were asked by telemarketers to give their personal bank account information, permitting payment to be withdrawn directly from their bank account. After payment was withdrawn, consumers received an informational guidebook rather than the promised grant.

            "It is disappointing that someone would mislead people about opportunities involving government funding. Unfortunately, government grant schemes are nothing new. When a telemarketer, classified ad, or other offer requires up front payment in exchange for 'free money' or other promises that seem too good to be true, don't pay," Cox said. "Giving bank account numbers or other personal information over the phone to someone who calls is an invitation for fraud to occur. Authorizing bank withdrawals over the phone should only be done when you place the call, and when the company is one that you know."

            Consumer Grants USA does business under many different names, including Ultimate Funding, Consumer US Grant Guide, Customer Care Plus, and Federal Grant Information Center. Currently, the Better Business Bureau lists the company as having an unsatisfactory record because of a pattern of complaints about selling practices and refund issues.

            Michigan consumers who want to file a complaint may go to www.michigan.gov/ag or call 1-877-765-8388. The Attorney General's office is particularly interested in hearing from Michigan residents who, despite being signed up for the National Do Not Call Registry, received calls from any Consumer Grants company. Calls by Consumer Grants USA to Michigan consumers on the Registry is a violation of State and federal law. You may sign up for the National Do Not Call Registry at www.donotcall.gov or by calling 1-888-382-1222.

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For further information contact: Randall Thompson
517-373-8060 (Office)
State of Michigan, Department of Attorney General