According to industry experts, U.S. corporations announced
95,000 job cuts in June 2002. With that many individuals looking for
work, some are bound to become targets for less-than-reputable
businesses willing to take advantage of their employment situation. If you are looking for a job, you may come across ads for
firms that promise employment results. Although many such firms are
legitimate and helpful, others may misrepresent their services, promote
outdated or fictitious job offerings, or charge high upfront fees for
services that may not lead to a job. Some ads may direct you to call a
toll-free 800-number. Once you are connected, you may be switched to a
pay-per-call 900-number without your knowledge, or you may be asked to
call a 900-number without a proper fee disclosure. Both practices
violate federal law.
Too many consumers who respond to these ads think they are
contacting a bona fide placement service that is seeking candidates to
fill specific jobs. Instead, they reach a business that creates the
impression that consumers obtain employment through use of its
"services." To make matters worse, such businesses typically charge
advance fees - ranging from several hundred to several thousand dollars
- for their services. Sometimes the fees are imposed without consumer
approval, or the consumer is led to believe that most or all of the
fees ultimately will be refunded, which turns out to be false.
When you are looking for help in finding a job, it is
important to understand the differences among employment services. Many
terms, such as employment agency, personal placement service, executive
search firm, or executive counseling service are used interchangeably.
Find out what services a firm offers, how much the services cost and
who pays. If you are required to pay the fee, find out what you will
owe if the employment service does not find you a job or any employment
leads.
Before you send any money responding to job ads or completing
job placement contracts, the Better Business Bureau, along with the
Federal Trade Commission, suggest that you:
- Be suspicious of any employment-service firm that promises to get you a job.
- Even
if employment service firm guarantees refunds to dissatisfied
customers, check on their reliability with outside sources like the BBB
or local consumer protection offices.
- Do not give out
your credit card or bank account information over the phone unless you
are familiar with the company and agree to pay for something. Anyone
who has your account information can use it to take money from your
accounts improperly.
- Get a copy of the firm's contract
and review it carefully before you pay any money. Understand the terms
and conditions of the firm's refund policy. If oral promises are made
that do not also appear in the contract, think twice about doing
business with the firm.
- Follow-up with the corporate
offices of any company listed in an ad by an employment service, to
find out if that company is really hiring.
- Be wary of firms promoting "previously undisclosed" federal government jobs. All federal positions are announced to the public.
- Check with the BBB to see if any complaints have been filed about a company with which you intend to do business.
There are a variety of free and low-cost resources
available to help you in your job search, including local and state
government job service offices, the Internet, local libraries and
universities and community colleges.