JANUARY 26, 2015

COMMENTARY

LOS ANGELES BUSINESS JOURNAL 89

Double Talk
Scam artists exploit language barrier
to take advantage of business owners
with limited English skills.
By STEVE McFARLAND

OS Angeles County has more than 466,000 minorityowned businesses, the most of any county in the United
States. Given the rich ethnicity of our region, you can
bet someone is turning the language barrier into a profit center. At the Better Business Bureau, our files are brimming with
complaints against vendors that take advantage of proprietors
whose first language isnt English.
The postrecession uptick in small-business growth has
translated into more first-time business owners, many of
whom are prime targets for fraudsters. Their plates are
overflowing, and theyre understandably attracted to offers
like streamlined solutions, one-stop procurement and
trusted partner.
The smell of money changing hands attracts shady opportunists like flies to honey; they will stop at nothing to siphon
off some of that stream. For example, there are some companies that peddle credit card services with a heavy hand, promising big savings but failing to deliver even draining bank
accounts and putting owners in financial peril.
The practice provides a perfect case study of false and misleading tactics that warrant careful scrutiny. Acting with no
regard for accountability, sales reps overwhelm prospects with
miscommunication and deception, preying on people who just
want someone to help them with mundane yet critical processes like swiping credit cards:
You cant talk right now? No problem, the rep will wait in
your store sometimes for hours until you give in.
The rep doesnt go over your contract with you or get your
signature.
You cant get out of your contract.
Try to get an answer from someone at the company and
you get the runaround.
Your card machine malfunctions and the money never
reaches your bank account, yet theyre quick to withdraw
their monthly service fee.
These scenarios are all too common, and many are reported to us by business owners who believe theyre being taken
advantage of because of their difficulty with English. After all,
its hard enough to read the fine print when one has a solid
command of the language.
There are several companies with similar names using the
same strategy. Usually a merchant is asked to sign two contracts: one with the company providing the card-processing
services and one with the company that leases the equipment. While they can sometimes get out of the service agreement, they find themselves locked into the equipment lease

with no recourse.
One L.A. company named Merchant Processing Solutions has
responded to only 11 of the 170 complaints filed with the BBB,
earning it an F rating. We have made four separate attempts to
contact the company with our concerns about the pattern of complaints, yet they refuse to reply.
Legal action has elicited modest results. In New York state,
the equipment-leasing companies agreed to refund $3.6 million
to businesses and change some of their practices; in Vermont,
Merchant Processing Solutions struck a restitution agreement
with the attorney general; and an affiliate of Lease Finance
Group faces a class-action lawsuit in federal court in Oakland.
The individuals best defense is vigilance, and there are steps
business owners can take before committing to questionable
agreements that cause more headaches rather than reduce them.
Lure with a promise of savings: When a vendor promises
free equipment or services, better rates than your current
vendor or comparable with those enjoyed by large retailers
such as Target, ask more questions. Get references. Talk to
existing customers to find out the terms of their credit card
processing.
Lack of contract transparency: When you cant get a
straight answer, when you think theyre hiding something
or they make changes without your consent, make sure you
read the fine print. Some of these contracts bind you to a

set time frame or commitment with no exit clause. Have

your attorney review the contract before you sign.
Predatory tactics and high-pressure sales: When you feel
the pressure, just say no. Repeat it until they get the message and back off.
Poor communication, no accountability: When you cant
reach someone or get a straight answer, contact the BBB
because we have proven methods for investigating and
resolving complaints, plus deep experience assisting law
enforcement in securing prosecutions.
Fraudulent handling of funds: The second you suspect
someone is mishandling your bank account, contact your
bank and request a stop payment.
There are many reputable businesses offering card processing under similar names, so its important to check first and
make sure of the name of the company youre dealing with
and that it has a good track record of responding to complaints. Search for businesses and read our reviews at our
website (bbb.org/search).
Language doesnt have to be a barrier either because we
have staff fluent in Spanish, Mandarin, Vietnamese, German
and Portuguese. As we say at the BBB, Start with trust.
Steve McFarland is president and chief executive of the Better
Business Bureau Serving Los Angeles.

Los Angeles Cant Coast on Silicon Beach Transit

By JOEL EPSTEIN

NE of the best pieces of economic news out of Los

Angeles in recent years has been the emergence of
Silicon Beach. A product of the marriage of L.A.s
creative talent with Web and mobile technology, countless
Angelenos and transplants are creating a tech-based creative
community on L.A.s Westside that might one day rival its better-known neighbor to the north. This is exciting on many levels, including the many well-paying jobs Silicon Beach companies both large and small are creating.
A key ingredient in Silicon Beachs emergence has been
the advanced telecom and broadband services available to
companies setting up shop in Playa Vista. But whether an economic phoenix will continue to rise from the Ballona Creek
nest that nurtured Hughes Aircrafts Spruce Goose is not a
sure thing. Concurrent with Los Angeles Mayor Eric
Garcettis pitches to Silicon Beach startups and established
firms like Google and Yahoo, the city, county and
Metropolitan Transportation Authority need to address the
challenge of transportation to and from these high-wage jobs.
Given L.A.s crippling traffic, doing things the same
way and expecting a different result is hardly a wise economic development plan for the city. As Silicon Beach
grows, our goal must be to avoid creating a transit-free
Century City West at Playa Vista. If we dont bring transit
to Playa Vista, it is just a matter of time before the wel-

come buzz about the area being the place to be gives way
to the inevitable caveat that Los Angeles is only as business
friendly as its traffic allows.
It is not too late to address the transportation inadequacies inherent in Playa Vista. The area is situated along three
transit-friendly corridors the 405 freeway, the route of
choice for a future rail line from the San Fernando Valley to
the South Bay; Jefferson Boulevard a wide street that
could easily support a light-rail or bus rapid transit (BRT)
line; and Lincoln Boulevard, a thoroughfare crying out for a
mass-transit solution.
Transit desert
Juan Matute of UCLAs Institute of Transportation
Studies notes, Right now, Playa Vista is a transit desert,
between the service territories of three agencies (Metro, Big
Blue Bus and Culver City). Just focusing some attention on
it can make it better. Matute adds that there is a strong case
to be made for a Metro Rapid bus line linking Playa Vista to
the La Cienega-Jefferson Expo Line station. This could be
constructed, with some bus-only lanes before Playa Vistas
construction is completed.
City government and Garcetti deserve kudos for making
Los Angeles more business friendly and Los Angeles can certainly use the good Silicon Beach jobs as well as the tax revenues they bring to Los Angeles Countys largest city.
Moreover, perhaps there are untapped opportunities to har-

ness the know-how of Silicon Beach companies to address our

broader transportation challenges. Google, which is expanding
to Playa Vista, has long been a leader in providing shuttle
buses and bikes to employees. While these private-sector
transportation solutions are not enough to keep traffic flowing
on the already congested Jefferson, Lincoln and 405, real-time
transit apps and other unexplored solutions might help encourage more Silicon Beach workers to ditch their cars for the
daily commute.
Playa Vista presents an opportunity to get things right on
transportation but it will require vision and the conviction to
address this new transportation challenge.
Silicon Beachs expansion at Playa Vista and the foreseeable failure of the 405 widening to puncture L.A.s eternal
gridlock should motivate the business community to get
behind the push for a rail line along the 405 with light-rail
spurs or BRT lines along key arteries like Jefferson. With the
transportation scholars at UCLA, USC, Loyola Marymount
and Rand Corp., and companies such as Google, Los
Angeles has the bench strength to improve transportation to
and from Playa Vista.
Now lets do it before the construction of those new cubes
is finished.
Joel Epstein is an L.A.-based strategic communications consultant focused on transportation, development and other
urban policy issues.