subject: Debt Relief Programs - Tips For Avoiding Credit Card Debt Relief Scams [print this page] Many people get themselves into different amounts of Credit Card Debt for various reasons. People who get into debt look for various ways to free themselves from their credit card debt. Although there are many forms of credit card debt relief, many people choose to seek the help of companies who claim that they can help reduce credit card debt with debt settlement. Although there are many legitimate businesses to help with credit card debt relief, there are many more that have had multiple complaints filed against them through the Better Business Bureau and other agencies for their fraudulent activities.
To help sort through the businesses that promise to help with credit card debt there are a few things to understand and look for in a company. There are a number of ways that a fraudulent company will try to scam their customers including:
- Not providing complete details as to how they will go about the credit card debt settlement process.
- Making empty promises about stopping calls from creditors.
- Showing customers that they can save a large amount of money by using their company to settle credit card debts. They will use this to try and hide the amount that the consumer will have to pay the company as a service charge for credit card debt relief.
- The worst thing a company can do is tell a person to stop paying debts and open a savings account. The company will then ask for details to the account and then draw their monthly fees from it.
Another way that many people try to get help with credit card debt relief is by using a debt consolidation service. There are a number of scams that can arise from using the wrong company. Some of the scams to look for are:
- In the beginning the company sets an extremely low monthly payment that is required to be paid. Once a person enrolls in the credit card debt relief consolidation program it is entirely possible that the company will raise the cost of the payments. It is important to keep check on any and all hidden fees.
- Many fraudulent companies will require a large upfront payment. This can reach into thousands of dollars for the initial fee for credit card debt relief.
- Fraudulent companies may ask for account number, social security number, and other personal information before giving a quote. A company like that needs to be avoided at all costs. Many debt consolidation companies can provide a quote based on creditor's names and their interest rates.
Although there are many companies that are set up to offer legitimate help with credit card debt relief, there are even more that were only created to scam innocent people.
