Debt Relief Scammers Find Easy Prey In Recession

Nov
26

One of the many unfortunate results of the economic recession has been the increase in unsolicited calls from debt-relief and credit repair companies, hoping to profit off others misfortune. Some families are even desperate enough to believe the blatant lies and deceptive marketing ploys.

A recent story from Kgw.com, a Portland news source, featured Lisa Thompson, a mom from Oregon and unwitting victim of the debt reduction company "Clear Financial Solutions." Thompson was told by a representative that they could negotiate with her creditors to get her a lower interest rate. What she wasn't told was that this service would cost her $895.

Later when speaking with her credit card company Thompson was informed that she
could have negotiated a better deal herself.

Caller Complaints users have reported hundreds of similar calls pushing debt relief, consolidation, and credit repair services. Recently "anonymous" lamented, "I don't use credit cards. I don't own a home, so don't have a mortgage. Why are they calling me and wanting me to press one to lower my interest rate? I am on the DoNotCall list. Isn't it amazing that the Gov't can't stop them from annoying us?"

The Federal Trade Commission (FTC) warns consumers to watch out for promises that sound too good to be true, and gives helpful pointers on how to avoid being scammed.

Watch this short video with a message from Linda Parnes, the Director of the Bureau of Consumer Protection.


If you want to find out more click HERE to read tips on how to identify a credit repair scam, and to learn more about your rights.

3 Comments RSS

Johnnie | December 2, 2008 8:40 PM | Reply

People need to know also something about credit settlements,When you do a settlement with a credit agency you're not scott free. The government will come after you and take your tax refund if you dont show it on your taxes. Our government feels you made money since you didn't pay it to the credit agency.

Debt Settlement Scams | January 14, 2009 11:06 AM | Reply

Debt settlement can be a great way to get out of debt fairly quickly, but beware, there are debt settlement scams around just waiting to take your money and leave you in a worse place than before. Debt settlement is the process of settling with your creditors for a percentage of the total balance you owe. For example, if you owe a total of $1000, and you settle with a creditor for 50%, you pay them $500 and call it even. This is a very simplistic example.

debt settlement services | May 14, 2009 12:00 AM | Reply

Although applying for loans is very hard, many companies are providing good services to the people just to pay back the money. The loan can only be a good way for seeking opportunities and fulfilling the desires but it will become a frustration if the borrower will not pay the money in time.

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