Coral Springs DUI Lawyer » Debt consolidation scam

Fraud alert – The tell-tale signs to identify a debt consolidation scam

Steve — Thu, 15 Dec 2011 10:10:23 +0000

In this age of economic downturn, no one is immune to debt problems in US. With thousands of people buried deep in debts, the demand and popularity of debt Consolidation Company is also rising high. However, with scammers mushrooming in the credit market, it’s not very easy to find a reliable debt relief company for your help. With no such federal or state rules regulating the credit industry, the industry has become saturated with fraudulent organizations and it’s easy for consumers to get scammed here; especially those who are vulnerable and desperate to rid your debt. If you are determined not to let yourself fall into such scam traps, read the points given below and know how to spot a debt consolidation scam.

Extraordinarily low Monthly Payment

A debt consolidation company generally negotiates with your creditors on your behalf for a lower interest rate and this interest rate mostly depends on the creditor’s choice and your existing rates. In most cases it was found that reliable debt Consolidation Company offers more or less the similar rates. However, companies which quote unusually low monthly payment, raise them up in the long run. Therefore, it’s highly recommended that you should check the fine print closely for any hidden costs and term, before signing the dotted line.

Upfront fees

If your gut feeling tells you that the fees amount charged by the debt consolidation package is too high, you better ask for a clear estimate from them. The most typical scam is to charge high upfront fees for debt consolidation service. If you come across any such company, which charge advance fees, immediately inform FTC. Legal non-profit debt relief organization usually charge a flat monthly fee for every account consolidated whereas for profit companies charge a competitive fee along with a flat monthly charge. These fees rates are generally subsidized by financing companies. Make sure you shop around and compare the price lists, repayment procedure and schedule offered by different debt consolidation companies, before making your final choice.

Asking for Your Account Numbers

The information that a debt consolidation company requires before giving you an estimate is your creditor names, balances and their interest rates. However, if any company asks for your account numbers, social security number, or other personal data prior to giving you a quote, its best to avoid them, as by offering this information, you open your self up to identify theft.

No choice

Sometimes fraudulent debt consolidation companies use a classic sales trick. They literally force the clients to sign up immediately, saying that otherwise the deal will be no longer available. They hardly discuss any other legal option of debt relief, other than debt consolidation.

Remember, a trustworthy debt consolidation company will work out a realistic plan for you and will address your debt issues quite seriously, so if you find any exception to this, it could be a scam. Before hiring the debt consolidation company, it’s best to consult BBB to check if there is any complaint lodged against the respective company or not.

debt settlement

Steve — Thu, 17 Nov 2011 07:04:43 +0000

If you are thinking not to pay for the creditors then you can go for the debt settlement companies. The debt settlement company is nothing but they approach the creditors and ask them to make your payable amount lesser for the lump cash. They ask the creditors for paying a lump of the amount which is less than the amount should be paid. If you have a lump cash then you can go for the creditors and ask them to reduce the amount you have to pay and you can pay the lump amount which you are having and get out from the debt.
If you don’t have a lump cash then you can go for the debt settlement company. This settlement companies ask the creditors to less the debt amount and ask them time for paying. The thing you have to do is you have to put a save some amount in this settlement company every month. If your amount is get to the payable amount then the settlement company will pay that amount to the creditors and make you free from the debt. This companies wont get their fees till the payment is finished for your creditors. If you debt settlement is over then your credit card rating will be go higher it wont be lower. You have to sign the agreement with this settlement companies and can start your account. You can start building the amount every month so that if your amount is built up then the settlement companies will pay to to your creditors and get you out from the debt.
The debt settlement is the most easier way and most useful way to get out from the debt.

How to protect yourself from consolidation scams in Colorado Springs

Steve — Fri, 09 Jul 2010 06:11:40 +0000

In Colorado Springs, there are many consolidation companies which can help you pay off your bills through a single monthly payment. They negotiate with your creditors to reduce the interest rates, fees, etc. and lower your monthly payment. However, there are a lot of scam companies which prey on consumer’s innocence to rip them off on. Thus, before you go for debt consolidation Colorado Springs, you must research thoroughly and check out the company’s profile.

How to avoid consolidation scams in Colorado Springs
Given below are some of the ways in which you can protect yourself from being scammed in Colorado Springs:

Check the company’s legitimacy: Before you enroll in a consolidation program in Colorado, check the company’s profile thoroughly. Contact the Colorado Attorney General’s office to find out if the company is legitimate. You can also visit the BBB website to know how credible the company is.

Stay away from outrageous promises: Most of the scam companies offer outrageous promises to lure the consumers into signing up for their service. Some of them may promise to get you out of debts within a few days, while others claim they can drop the interest rate to zero percent! When a company makes such promises, you better be alert because chances are they are scam companies.

Do not pay upfront fees: You should be wary of those consolidation companies that demand an upfront fee from you. Most of these companies are scam and they take your money without offering you any help whatsoever with your debts.

Do not disclose personal information: When you contact a consolidation company, do not provide them with too much of your personal information. You should not disclose your bank account information, Social Security Number, etc. to the company. If you share the sensitive information with them, they can use it to rip you off.

Read the documents carefully: The scam companies often include hidden fees and charges in the agreement and take advantage of the fact that most of the consumers do not read them carefully. Thus, it is necessary that you read the documents carefully before signing the agreement and enrolling in a debt consolidation Colorado Springs program.

Unless you take these precautions, you can lose your money and still remain trapped under debt. Thus, you need to research thoroughly and be aware of your consumer rights to avoid being scammed by the unscrupulous consolidation companies in Colorado Springs.