Scam companies promising to help you with your credit card debt.
15 April 2010 Joe Sellers 1 Comment

A growing number of telemarketing frauds are focusing on individuals who have a sizable amount of credit card debt and a bad credit history. Many of these dishonest organizations intentionally present untrue offers expressing the fact that they are going to be able to talk with the creditors to minimize interest on your credit cards and in numerous occasions would have their lines of credit increased in order to give the consumer a higher spending limit. They were also promising to be able to repair damaged credit reports very quickly.

In March of this year the Federal Trade Commission (FTC) said that Credit Restoration Brokers and Debt Negotiation Associates, who offer debt settlement services have actually decided to settle regarding the charges of which these companies had purposefully mislead their consumers into having to pay thousands of dollars by guaranteeing that they were able to remove foreclosures, tax liens, bankruptcies and even child support delinquencies from their credit report.

The complaint also alleged that the companies falsely divulged to consumer’s reporting offices that the people were victims of identity theft in order to try and challenge damaging remarks “said Frank Dorman, Public Affairs Officer for the FTC. “Consumers ended up being attracted by assurances that this company could easily improve their credit report for a charge of $2,199.

This is exactly why it is extremely important that while you are doing work with any company in any area you take on the responsibility to do your research on them in advance of you using their services. The debt settlement industry is unregulated and because of this more of these type of unethical companies are misleading consumers into signing up with them with in a few minutes of a conversation. Make sure that you feel comfortable with the person you are speaking with and you do not feel pressured that you have to make a decision right then. I hope you determined this information valuable in relation to doing one’s own homework.

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