The Scam
Since much of the American business landscape is choked by mandatory quarantines and social restrictions, debt consolidation scams are increasing. These scams are most often reported as cold calls. Scammers call you out of the blue to offer sham “guarantees” which are supposed to get you out of debt quickly and cleanly. Some ask for an upfront fee, then take your money and run. Others will string you along, collecting payments and making promises while you fall farther behind on delinquent accounts. Student loan debt is another hot area under attack, so let your family members know to be suspicious of any loan relief offer.
What You Can Do
Be aware that financial stress is an easy target for a scammer. Your defenses may be lowered when someone is offering help, so listen closely if you get a call like this. And make sure you:
- Look up the company’s name online and check with the Better Business Bureau, or your state’s attorneys general and consumer protection agency to see if the company has been the subject of complaints.
- Don’t trust anyone who claims to be part of a “new government program” or who explains there’s a change in the law that will reduce, forgive or cancel student loans, credit card debt or other liabilities.
- Hang up immediately if they ask for an upfront fee. This is illegal. Plain and simple.
- Hang up if they “guarantee” that your debt can be reduced by a particular percentage or that they can stop collections. Debt consolidation companies have to review your financial situation, estimate the length of debt, and assess risks. This takes time and the result is different for everyone.
If you or anyone you know is interested in debt assistance, the US Department of Justice recommends contacting the National Foundation for Credit Counseling who can help you locate a local credit counseling service.
If we can help in any way, please just reach out to [email protected] or 360-930-6991. We hope this information helps you and those you care about avoid any painful interactions like this.