Debt Consolidation Scam
As if it isn’t bad enough that you have to look into debt consolidation as a way to get a hold of your finances in this economy, there are people out there making it worse by trying to take advantage of you. There are many debt consolidation scam artists out there that are more than willing to take what little money you have instead of getting a real job.
The Better Business Bureau has sent out a warning to consumers letting them know that there are better options for taking care of your debt consolidation. They say that consumers should be on the lookout for debt consolidation scams where they take your money on the premise of paying off your bills but then they pocket your money instead.
They cite the case of one woman whose daughter racked up her credit cards and then passed away. The woman knew she was unable to pay them back so she looked into debt consolidation. They told her that she would pay them $300 a month and they would settle her debts for her.
For a while the creditors stopped calling so she assumed that everything was being taken care of. Then they started calling again – and she found out that the company was simply pocketing the money that she was sending them every month. Now she is paying the debts, fighting collection agencies and looking at her pension being garnished.
The BBB says that any debt consolidation company that says you have to pay them is to be seriously looked at. They say that there are plenty of not for profits out there that don’t charge a fee to help you.
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