If you have a lot of credit card debt and are looking for relief, be careful whom you ask for help. Some agencies claiming to offer mortgage, tax and debt relief services may be exaggerating their claims. Because of such misrepresentations, the Federal Trade Commission (FTC) recently filed a complaint against an individual who allegedly used multiple Web sites to impersonate federal consumer assistance agencies.
No government affiliation
The FTC charged Christopher Mallett, a "lead generator" based in Texas, with misrepresenting his affiliations with federal agencies, misrepresenting that services offered through his websites were approved by the government, and making deceptive debt relief claims. Mallett did business under the names Department of Consumer Services Protection Commission, U.S. Debt Care, World Law Debt, U.S. Mortgage Relief Counsel, gov-usdebtreform.net, worldlawdebt.org, usdebtcare.net and FHA-homeloaninfo.
The FTC alleges that Mallett used the FTC's official seal and copied portions of its website to give the appearance of being affiliated with the government. His sites also claimed that the FTC "monitors and researches" member companies that provide financial help to consumers. Mallett's websites have never been affiliated with the U.S. government despite the claims.
Exaggerated debt relief claims
Debt relief scams often make outrageous claims that consumers can substantially reduce their debt. Mallet also allegedly made claims about credit debt relief that were false or unsubstantiated. Anytime you are thinking about getting help from a debt relief firm, it's important to thoroughly check out the company's credentials.
There also are some red flags that should alert you to a possible debt relief scam, including:
- Promises that credit card debt and other bills can be settled for pennies on the dollar. There is no guarantee this will occur.
- Debt relief that requires significant monthly services fees or fees that equal a percentage of the money you supposedly saved.
- You are told to stop making payments on your monthly debt bills.
There are other signs that could indicate a debt relief scam, so be very cautious about signing up for any plan. The best bet for getting credit debt relief is to negotiate directly with your creditors.
DIY debt consolidation: 3 secrets for success
You're sinking fast in credit card debt, and there's not a life preserver in sight. Loans and balance transfer offers involve applying for more credit. Follow these tips for rescuing yourself from the dangers of excess debt.
Reducing debt or building savings?Even if you are following a debt reduction plan, it is important to try and build emergency savings.
When debt help is not enough: 3 reasons for filing bankruptcySituations can arise that make paying your bills impossible, or that render you ineligible for participating in debt relief efforts such as credit counseling. When you're enduring any of these circumstances, consulting a bankruptcy attorney can provide information about your rights and the consequences of filing bankruptcy.
Personal spending rises as income slipsPersonal income declined in August, but personal consumption expenditures rose, according to the Bureau of Economic Analysis.
3 reasons for consolidating credit card debtAre you paying more than one credit card bill each month? Have you overlooked a bill and incurred penalty interest rates or late charges? Consider credit card debt consolidation for simplifying debt management chores.
Guide to No Cosigner Student Loans
Are you a would-be student who would like to attend college, graduate school, or professional school, but are hesitant because you…
The advantages of using your local credit union to refinance your mortgageLocal credit unions increasingly are popular alternatives to traditional banks. While banks are privately owned,…
Debt Consolidation for Senior CitizensFew people have more financial choices, yet more opportunities to be overwhelmed by those choices, than senior citizens. Seniors…
What is the Best Loan and Debt Repayment Program?Incurring debt sometimes is necessary in order to meet one’s financial and personal goals, or to make payments for necessary…
Bad Credit Student Loans for High Risk StudentsCollege costs nowadays are through the roof and are only expected to rise in the future. Most students and/or their parents…