(MONEY Magazine) – New evidence that the thousands of computerized scholarship search services rarely deserve their $45 to $200 fees is coming from lawsuits filed by the Federal Trade Commission and state regulators. Typically, the suits make one of two charges. Either the services, which sometimes promise scholarships of as much as $20,000, only provided information found in libraries, or their ads aimed at potential franchisees inflated the moneymaking opportunities. Says Eileen Harrington, an FTC associate director: ''With hard times, more people look to franchises like these to increase their income.'' Wisconsin's attorney general last May filed suit against Money for College of Granada Hills, Calif., claiming, among other things, that the firm provided information ''of little or no use.'' A lawyer for the service says: ''We take issue with that statement and are prepared to litigate.'' In July, the FTC charged Academic Guidance Services of Mount Laurel, N.J. % with misleading thousands of licensees who had spent $495 each. Students suffered too. After Jennifer McEnaney, 26, of Binghamton, N.Y. paid $89 to an AGS licensee last April, she got a list of 13 scholarships. But in 12 cases, she either didn't qualify or got the information too late. AGS, now subject to a temporary restraining order, filed for bankruptcy in September. Zenith Marketing of Atlanta, a Money for College licensee, also filed for bankruptcy in September, shortly after Georgia officials threatened to sue for allegedly leading parents to believe their children had already qualified for scholarships. A Zenith lawyer, while denying the company did anything wrong, says Zenith offered to settle the dispute by altering the wording of its sales materials. Your child can hunt for scholarships on his or her own at the library or the high school guidance office. One helpful annual guide: Paying Less for College (Peterson's, $20.95), which lists more than 300 scholarships and financial aid programs.