CBS12 News Team

Scam Alert: Complaints mount against Palm Springs employment agency

PALM BEACH COUNTY, Fla. -- Thousands remain out of work in South Florida and some of those who are unemployed are turning to employment agencies. But how do you know if the company is legitimate.. or ripping you off?

We were contacted by a woman who went to an employment agency in Palm Springs. She questioned the up-front fee. We ended up finding others with a similar concern and other complaints.

Sue Lloyd: So I'm looking for an administrative type position, administrative assistant position.

Sue Lloyd of Lake Park, out of work several months, found this ad on Craigslist. It lists a phone number for Action Employment and indicates there is some kind of fee. Lloyd calls and gets an appointment at Action Employment in Palm Springs.

Sue Lloyd: Then she mentioned the 35 dollar fee, and red flags went up. But I went ahead and paid the fee anyway.

Lloyd says she filled out the application. But there were more red flags.

Sue Lloyd: The other thing in the office there was not one computer. There wasn't a copy machine. There were a couple of file cabinets. There were phones, and a machine you could run off credit cards.

Back at home Lloyd did an online search of Action Employment and while there were some good reviews most were critical of the company. When we get involved we also find more than 50 complaints with the Better Business Bureau.

Mike Galvin/Better Business Bureau: It's a significant number. No matter what it is you're dealing with, it's a red flag when there's an up front fee.

Even a seemingly nominal $35. Galvin says usually employers pay a fee to the agency when they hire someone. When we visited Action Management no one will go on camera, but we spoke with a woman who says she's worked here 23 years. She says the $35 fee helps pay the company's bills and clients are told there are no guarantees. She says the company has placed thousands of people through the years.

Sue Lloyd: You know what, I hope I'm wrong. But if that's true, cha-ching, cha-ching, cha-ching for these ladies.

That notion disputed by Action Employment. As for no computers in the office, the woman we spoke with says she does computer work at home, and says phone communication is still effective.
We did speak with others with complaints about Action Employment. The common theme, after paying the fee the customers did not hear from Action and had to call them to find out what was going on.

Tuesday, July 17 2012, 06:47 PM EDT

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