Credit Counseling Scams-Assessing credibility of credit counseling companies.
The slowdown in the economy has resulted not only in an increase in personal debt, late payments and foreclosures but have also given rise to fraud credit counseling companies.
Though there still are some credit counseling companies which are genuine but there has been a sudden spurge in credit counseling companies which do not have your best interest at heart.
One of the most common signs or practice of such scam credit counseling companies is the upfront fee that they charge. According to the Better Business Bureau-legitimate credit counseling companies do NOT charge an upfront fee.
So what are the points or features which differentiate a legitimate credit counseling company from a fraud? Some of these are mentioned as under:
A company announcing unexpected or too-good-to-be-true claims even in a recession, most probably is trying to coax people into overlooking the company’s true image.
Every legitimate credit counseling company provides a free first-consultation (especially in times of economic slowdown).
Genuine credit counseling companies do not charge anything more than the agreed monthly fee.
Before entering into a contract with any such credit counseling company, checking out the company’s credentials with the authorities will definitely prove to be an insulation from possible fraudulent activity.
Carefully going through all the terms and conditions of the agreement and even seeking professional help in sorting out ‘grey’ areas in the agreement, would be an added advantage.
Choosing a non-profit agency would be the best option. Agencies working for profit may be an option but it will always be difficult in segregating genuine for-profit credit counseling agencies from fraud credit counseling agencies.
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- Credit Counseling Scam-Warning Signs and Red Flags!!
- Preventing Foreclosure Scams!
- Father ,Daughter Convicted in Ponzi Scam
- Did you receive a mail today from Tim McCarron or Richard Thompson or David Bennett from Fidelity Investments?
- 5 Top Tips to Identify Scams
