No one wants to be ripped off, yet it happens to each of us all the time. Some companies take advantage of the fact that we need what they’re offering, while others abuse our lack of knowledge. These 18 types of companies are known for ripping off Americans, and we keep letting them do it.
Cable Companies
There was a time when cable companies were our only option for television, internet, and phone services. Cable providers are notorious for high fees and poor service, often bundling unwanted services to inflate bills. They also tend to have one company dominate cities and counties, not allowing buyer options. Luckily, streaming services and cell phones have given people the ability to cut the cord on cable.
Electronics Companies
High-value electronic brands use proprietary connectors, forcing consumers to buy new cables and accessories with each device upgrade. Companies have also been accused of having device life shorten the closer they get to releasing a new phone, forcing users to buy the latest phone on the market, according to the BBC.
Airlines
It seems like airlines are constantly hitting the news for canceling flights, overbooking, and leaving paid passengers stranded for days. Food and beverage service has gone down, while ticket prices have gone up. Most airlines now charge for checked bags and some for carry-ons as well, knowing we have no choice but to pay these added fees.
Diamond Industry
Grey Journal explains, “The perception of diamonds as a scam arises from the diamond industry’s practices of creating artificial scarcity and inflating prices, combined with aggressive marketing that exaggerates the value of diamonds.” Diamonds don’t hold their resale value and can be hard to sell if an engagement or marriage goes wrong. Millennials started to come out of the spell of the diamond industry with a preference for other gems.
Auto Repair Shops and Car Mechanics
Auto repair shops are notorious for charging for unnecessary or unperformed services, taking advantage of consumers’ lack of automotive knowledge. Car mechanics in general are well known for ripping their customers off. An NBC investigation discovered numerous car shops ripping their customers off by charging them for work that was never actually done or doing unnecessary work.
Flight Websites
Be careful how many times you search for the flight you want. You may believe you are being diligent, but airlines are using your eagerness against you. Many travel and flight booking websites use cookies to see how often you are looking up specific flights and then changing the price accordingly, knowing you want to go and you are more likely to pay more.
Credit Report Scams
The only website you should go to to check your credit report is annualcreditreport.com. If you go to any other website, like freecreditreport.com, you’re being ripped off. Companies deliberately set up sites that sound like free sites to take advantage of people.
For-Profit Schools
Consumer Alert warns, “For-profit colleges sometimes use overblown—or flat-out false—promises to attract new students and their money.” Institutions like Trump University and ITT Tech have charged high fees for unaccredited and often worthless degrees.
Multi-Level Marketing (MLM) Companies
MLMs seek out people looking to make money at their own pace from home, often mothers who want to have their own business while still taking care of their children. While some MLMs do allow people to make money with minimal financial contribution themselves—i.e., by buying a certain amount of product for themselves to qualify for commissions—others, like LuLaRoe, manipulate people into going into massive debt with the promise of making a living.
Big Banks
Banks find ways to charge fees for everything: ATM fees, overdrafts, account maintenance fees if your account is below a certain amount, and more. Motley Fool talks about Bank of America, Chase, and Wells Fargo being the worst offenders. “In 2016, those three big banks raked in over $6 billion in overdraft and ATM fees alone.” There are financial institutions where you can put your money without all the extra fees, so be sure to do your research when opening an account.
Funeral Homes
After losing a loved one, being taken advantage of should be the last thing on your mind. Unfortunately, funeral homes often know you aren’t in the best state of mind and are guilty of upselling customers on caskets, often by suggesting that a cheaper coffin will lead to faster deterioration of the body of the deceased. Some funeral homes will also push embalming, which is not required in many cases.
Credit Card Companies
Credit card companies want you to accrue interest because that’s how they make money. One common way that credit card companies anger their customers is by hiking interest rates or decreasing credit limits overnight. Credit cards designed to “help repair credit” are notorious for having exorbitant interest rates that trap their users in a debt cycle.
Extended Warranties
Almost every company provides optional warranties, and almost all of them are ripping you off for them. Warranties are a huge money maker for businesses because most people never need or use them, and even if they do, the company quite often rejects the warranty or makes them too difficult to use. The only legitimate warranties are lifetime warranties that you don’t need to pay for.
Health Insurers
“In the U.S., the health insurance industry is worth a mind-boggling $1 trillion-plus. Unfortunately, health insurers are notorious for charging high premiums and big deductibles,” says Finance Buzz. People pay hundreds of dollars a month just in case something happens, plus co-pays and deductibles if something does happen, needing to hit a huge out-of-pocket amount before it’s truly of any use.
Car Dealerships
Many car dealerships employ deceptive practices like the “four square method” to obscure the fact that customers are overpaying. The “four square method” is where the price of the car, down payment, trade-in value, and monthly payment are all quietly combined into one transaction. They also keep you waiting for hours, so by the time the paperwork is there, you are too tired and hungry to argue.
Pharmaceutical Companies
Public Citizen reports, “In 2020, the combined sales in the U.S. for 17 of the 20 top-selling worldwide drugs generated more money than those same drugs did for the rest of the world combined.” Knowing people need their medications, Big Pharma chooses to keep prices high on name-brand and patented drugs to rack in billions of dollars at the expense of the sick.
Telecommunications Companies
What would we do without our cell phones? Big phone companies know we live in a world where we don’t know how to live without them. And they take full advantage of that by charging hidden fees and not maintaining great customer service. Outages barely get an apology from the telecommunication companies, and we continue to pay. But at least we don’t pay per text or long-distance anymore.
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