Debt Consolidation Fraud
It is a sad fact that there are some companies that will look to take advantage of a person who is in desperate need for help. It is desperation that makes some people unable to think straight, which can lead them into a trap by fraudulent debt consolidation services.
You can avoid being duped by such services by just taking a step backwards and remembering that your debts are in effect going nowhere. You can feel desperate because of pressure a creditor or a collections company is putting on you to pay up.
Try to remember that any collections agency behaving irresponsibly and harassing you will be breaking the law. If you tell them that you are seeking help and provide them with proof, then most companies will give you some time to work something out.
The most important information to look for when trying to determine legitimacy is an address and phone number. Not only is it a tool for your initial research, but it can be invaluable if something goes wrong.
Get a physical address, not a PO Box. The state that the company is in does not matter, really, since most companies will establish an office in a location with favorable banking laws. Get at least one phone number, too, and check that it works and connects to the correct business. If anything seems out of place, double check the area code of the phone number and see if it matches the state. If they do not match, something may be wrong.
The market is littered with many fake debt consolidation loan agencies and they are still thriving despite the fact their operations are illegal. This has been contributed in part by the desperation of people seeking these loans. If you have ever been through the experience of being deeply indebted and the ensuring hopelessness then you will understand the vulnerability we are talking about. But all that can be evaded if you only stick to several measures that are surefire ways of analyzing the suitability of any debt consolidation loan.
Unfortunately, there is some fraud in the debt consolidation industry. For example, in some cases disreputable agencies require significant funds to be paid ahead of time. Rather than applying this money toward your debt, such companies will claim it as fees for handling, researching, negotiating, and various sundry expenses that may be more imagined than real. In addition to the foregoing, there is also a good chance that you may encounter problems with debt consolidation agencies that do not live up to their contractual end of the agreement. For example, if the agency promises to negotiate with the creditors a payment schedule that sees debts repaid on the first of the month but then fails to make the payment, it is you, the initial debtor, who will see the adverse effects on the credit report. Shopping around when choosing a debt consolidator for your needs is a key exercise!
Debt Consolidation Scams
Despair to the financial crisis that one of these factors, credit agencies, in which guests and make room for bad creditors and their share of the profits. Repayment inability to order in days, and several cases of fraud, debt consolidation, have not been reported.
Number deceived themselves as legitimate institutions to change the fate of usurious credit report at night with a minimum fee in advance. This is fraud and payment is required in anticipation of his prey. They have no real intention there is no money, but please understand, if someone promises to change your credit report overnight, it is a scam, because it is not possible.
One has to admit the fact that he needs to be very wary about all those companies who promise a prospective client easy ways in which he can meet his fiscal obligations. A large majority of these companies might be fly-by-night operators and are going to persuade you to part with a sum of money, as fees for consulting them. There is a chance that you might even be duped in the matter of getting the required loan.
An excellent way to do your research is with the Better Business Bureau, there are many companies out there and with the Better Business Bureau they can lead you right to a company nearest to you for you to seek and ask for the consolidation services you are seeking.
While you might think that all is lost as you search for services, remember there are reputable companies out there that truly do want to help you. Truly the time you spend finding such a company will leave you with the relief you have been waiting for.