At a time when large numbers of Americans are struggling with debt, it’s no surprise they’d become targeted by scammers claiming to offer relief.
Companies offering debt removal solutions and credit guidance are on the rise, but so are debt scams as well.
Today there are a variety of debt-related scams that include debt counselors, identity theft and credit cards. 1st Financial Center is offering information for consumers about recent deceptive debt scams and tips to avoid being a victim.
Current debt elimination scams declare that debts can be erased, diminished and even clear mortgages. Although there are actual reputable businesses that do lower debt, beware of those that promise the world.
Scammers in the debt elimination organization typically feed consumers a range of lines such as “banks as well as other finance companies charge illegal fees. For that reason, we shall submit an application form in your name and, working with loopholes within the system, you won’t have to pay back your loans.”
In turn, most of these con artists usually charge consumers thousands in upfront service fees or monthly fees for 12 to 36 months.
By verifying company credentials shoppers can protect themselves from being a scammer’s unwilling recipient. Buyers should look for for signs that make a company credible, according to 1st Financial Centers.
Consumers should make sure the company they’re working with is compliant with Federal Trade Commission rules, only employs agents certified by the International Association of Professional Debt Arbitrators, is a member of the American Fair Credit Council and has good ratings on the Nationwide Business Bureau.
A credit counselor should commit a minimum of 20 to 30 minutes offering assistance to obtain a complete picture of the financial situation. Consumers should sure to ask questions and find out about any expenses. If a company has upfront fees, walk away.
If something sound too good to be true, it probably is. It is important for consumers to do homework and research companies.
Facing growing bills can be worrisome, but 1st Financial Centers warns that debt assistance is not a decision determined by watching a TV commercial or receiving a sales call. Consumers should find an organization that will take time to work with them and provide a budget analysis with no sales pressure.
