Debt Scams: You Better Watch Your Back!
Debt collectors and debt buyers are not the only companies in the debt collection sector scamming hapless victims. Following are examples of other dubious companies running debt scams. They are out to pull the rug from under you.
A bankruptcy attorney can help you escape the trap of these debt scams.
1) The Debt Settlement Companies That Want You to Pay a Different Account but Not the Creditor.
These businesses take fees beforehand as well as a percentage of each payment. Afterward, they hold those charges in an account till they get to a point where the creditor is willing to exercise a settlement with them. The only trouble is that their charges are generally so high that the consumer never acquires enough cash. Creditors do not receive their full amount of money. And, their debtor stays in the red. The only team that prevails in this fraud are the debt settlement firms.
2) The Debt Elimination Companies That Will Inform You How to Resolve Your Debt … For a Fee.
These kinds of businesses guarantee information on how to eliminate financial debt. Some supply different tools, such as a “bond for the discharge of debt” or a “redemption certificate” that the debtor is to provide to the creditor. You might as well hand the creditor a blank piece of paper since those bonds and certificates are useless and utilizing them may be a felony.
3) Various Other Rip-offs
Those frauds including debt consolidation and home equity loans, payday and auto title loans usually do nothing but drown the consumer deeper right into debt. They are not a remedy. That being said, those who manage their monies suitably can find a benefit in payday loan companies. This is specifically real of subcontractors who typically have to pay their employees cash at the end of the week.
Lastly, every one of these “credit repair” businesses advertising their services on social media, particularly on Facebook, may be violating the Credit Repair Organizations Act (CROA). If anybody assures you that she or he will certainly decrease your financial debt, and then he or she requests payment beforehand, avoid at all costs. Besides reputable non-profit companies, no credit company or even a credit attorney is allowed to charge fees before the job required is completed.
Do not fall for these traps. Call our experienced bankruptcy lawyers at Karina Lucid Law for a free initial consultation.