The Better Business Bureau of Central, Northern and Western Arizona ("BBB") is warning consumers about two local Scottsdale businesses operating Internet discount and coupon clubs. They are Liberty Discount Club and 777 Web Discount Club.

More than 600 complaints from consumers in 44 states and Washington, D.C. have been lodged against Liberty Discount Club. According to the BBB, there are about 500 complaints to which Liberty Discount Club has not responded.


Consumers have reported unauthorized bank charges, assumed to be membership fees for Liberty Discount Club. The problem is, these people never signed up to be member of the service. Complaints against 777 Web Discount Club are similar. Both companies have an "F" rating from the BBB.

Complaints against Liberty Discount Club allege consumers went online either to search for information on loans or apply for loans. They were not enrolling in a discount club. "Nearly all of those who filed complaints with us are people who sought to take out high-interest online loans," said Matthew Fehling, BBB President/CEO. "Many also claimed they never intentionally enrolled in the club and had never heard of the company until they noticed money missing from their bank accounts."

These types of discount clubs often include questionable (at the very least) testimonials from purported customers. The same names, verbatim testimonial and photographs have been found to be present on different online discount clubs, including Discount Club 247, Key Discount Club, Saving Club 247, Web Savings Club, Unlimited Local Savings and Perks 2 U.

The online loan companies mentioned in association with this scam were Last Chance Cash Advance of Manchester, Tennessee and Amnesty Financial of Indianapolis, Indiana.

The Better Business Bureau offers the following advice to consumers searching for online loans:

1. Short-term loans/payday loans have high interest rates. Research other alternatives before applying for these loans.
2. Never pay an advance fee in exchange for a promise on a loan. These are almost always scams and, once you have paid, you likely will never receive a loan.
3. You are taking a risk when you divulge your personal information online. Don't give your Social Security numbers and bank account information to companies you do not know. Do your own research on the company, and don't depend on the information at the company website.
4. Read all information on the website very carefully, searching for hidden fees or disclaimers. Often, a company's "Terms and Conditions" can be several pages long and contain critical information for consumers.
5. Companies can exaggerate or entirely fabricate testimonials. If it sounds too good to be true, it is probably too good to be true. Be suspicious of testimonials and ask for references you can call and speak with.
6. Contact BBB to research a company by visiting www.bbb.org or calling 602-264-1721.