As Americans struggle with record-high levels of debt – from credit cards to student loans, auto loans and home mortgages – many people are seeking help from legitimate debt relief companies. However, scams are popping up left and right that prey on consumers’ desperation. These fraudsters offer up false promises of immediate financial relief, and then bilk unsuspecting victims out of thousands of dollars. Luckily, there are steps you can take to protect yourself from becoming the next victim of this type of fraud.
A reputable debt relief company in Albuquerque will be transparent about its methods and fees, as well as the timeline for completion of their services. If they are unwilling to explain their processes in detail, or if the contracts are confusing and full of misspellings and other errors, it’s likely a red flag. Additionally, a reputable company will not make big promises that are impossible to deliver. Any claims that they have “secret methods” or legal loopholes that will instantly cut your debt in half are likely scams.
Another red flag is when a debt relief company asks for upfront payment. This is against the FTC’s Telemarketing Sales Rule, and it’s also illegal in some states (including North Carolina). Even if a debt relief company is reputable, you should never be required to pay any fee before they’ve secured an agreement with your creditors to settle your debt.
Debt relief scammers may also ask you to stop communicating with your creditors and to stop making payments. This is a surefire way to hurt your credit score, and it’s usually a sign that they haven’t performed any actual services. Often, these scams are discovered when the consumer finds out that their credit card companies and other lenders haven’t stopped charging them, and their accounts have fallen further into delinquency due to missed payments.
In addition, fraudulent debt relief companies often have high-pressure sales tactics that are designed to rush their victims into making rash decisions. These calls can be scary and intimidating, so it’s important to remember that you have the right to pause, take a deep breath and think about the situation before agreeing to anything.
One of the most common tactics used by debt relief scammers is to ask for personal and financial information that could be used to steal your identity. This includes your address, phone number and social security number. Avoid any company that requests this information, and consider signing up for a digital identity protection service like Aura to safeguard your data. Additionally, limit the number of checks you write by utilizing debit and credit card payments more often. This can reduce the risk of fraudsters using your information on stolen checks to create counterfeit or duplicate checks. Lastly, it’s always a good idea to invest in an ID theft and debt relief prevention solution. Aura can give you peace of mind by helping to protect your credit and finances from fraudsters, allowing you to focus on what matters most. If you need legitimate debt relief services, visit https://www.newmexicodebtreliefhelp.com/.