Would You Know How To Spot A Debt Elimination Scam?

If you are bogged down in debt then looking for a solution can be quite bewildering.

Obviously the best method is to increase your income to match your outgoings, however, this isn’t as easy as it sounds and some people’s level of debt requires other action too.

DEBT ELIMINATION PROGRAMMES

For this reason there are many people searching locally and on the internet for debt elimination programmes.

As with all financially related matters, scammers have seen an opportunity and got in on the action.

One of the latest developments in debt elimination scams is for companies to operate under names that are very similar to established financial institutions, thereby trading on the reputation of these other businesses.

Also, they are increasingly found operating within networking or multi level marketing schemes.

This means that the agents selling the services often have little to no knowledge of legitimate debt elimination techniques.

As such, they are often unaware that the service they are promoting is a scam.

Of course some know full well that it is a scam and proceed anyway.

debt-elimination-scam

SPOTTING A DEBT ELIMINATION SCAM

So how can you tell the difference between a scam and a genuine debt elimination service?

Quite simply, by carefully reviewing the options put forward by the person or company offering the service.

Most debt elimination scams evolve around the (false) principle that many, if not all, lenders are operating illegally and do not have the right to lend you money.

Therefore, they go on to say, you are not legally obliged to repay any of it.

Of course, this is utter nonsense.

YOU DON’T NEED TO REPAY DEBT???

There has never been a case yet where a judge has ruled that a plaintiff does not have to pay back sums owed under a bona fide credit arrangement.

Ignoring creditors, or refusing to pay them for this reason is just a sure fire way to become blacklisted, bankrupt or sued.

Oftrn these debt elimination scammers will offer to right off huge methods via this technique, charging their victims a very modest 20% of their total debt in order to wipe the rest clean.

This means that a great many people who are already in financial strife are handing over large sums of money that they will never see again and are then finding themselves in a much worse situation, their credit destroyed and creditors knocking at their doors. Or worse.

If you have been the victim of one of these debt elimination scams then you should try to recoup your money from the firm that gave you this misleading advice.

If that fails then try law enforcement or the courts, however, it is likely you will just have to write off anything you have paid out.

As a matter of urgency get in contact with your creditors – most are understanding and willing to help as much as they can if you maintain a good level of contact with them.

Explain what has happened and how much you can afford to pay – after all, receiving some money is preferable to a creditor than having to write a debt off or having to pursue someone through the courts or via debt collection agencies.

About Lee Munson

Lee's non-technical background allows him to write about internet security in a clear way that is understandable to both IT professionals and people just like you who need simple answers to your security questions.

Comments

  1. I’ve never been in that sort of trouble myself but you offer up some good points and there isn’t a mention of beef anywhere 😀

  2. Most lenders do not have the legal right to lend you money? How can anyone believe that? If it were true it wouldn’t be a secret for very long and the whole banking system would collapse.

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