Fraud and Scam News

Recession and economic instability resulting in more and more companies announcing layoffs, seems to be the perfect time for credit counseling companies. But, as every coin has two sides, these perfect business times for credit counseling companies is also leading to the birth of credit counseling scam and scam artists. Scammers are just waiting to take advantage of this ripe situation.
There are some warning signs and red flags which can save from credit counseling scams. Some are listed below:
1.One can detect a red flag if one comes across a “too-good-to-be-true” language or matter in a e-mail or advertisement eg. Remove liens, bad loans and bankruptcy from your credit file-FOREVER!! ; A one-stop solution to all your credit problems etc.
2.Companies or organizations advising you to create a new credit identity is trying to make you do something which is illegal and fraud. Such an act is entitled to prosecution by law.
3.Suggestions to create a new employer identification number, will end up making you do what is unlawful and illegal (same as in pt. no. 2)
4.Credit counseling scammers will always try to make you stay away from reporting your credit to a credit reporting company directly. This is a definite process of initiating a false move on your part.
5.Credit counseling scam organizations will not tell you your legal and fundamental rights, the simple reason behind this is that they themselves are unaware of any such rights.
6.Charging up-front fee before providing any solution is a sure warning sign that the company is a credit counseling scam.

Related posts:

1. Credit Counseling Scams-Assessing credibility of credit counseling companies.
2. Preventing Foreclosure Scams!
3. How to Spot and Prevent Foreclosure Rescue Scams ?
4. Rental Scams-Red Flags
5. Foreclosure Rescue Scams figuring New heights in Hard Economy Season

April 25th, 2009 | Tags: Anti-Scams, credit counseling agencies, credit counseling companies, credit counseling scams, credit scams, Email Scams, foreclosure scams, Internet Marketing Scams, online scams, safeguarding against credit counseling scams, scammers | Category: Action Against Fraud, Anti-Scams, Email Scams, Foreclosure Scam, Fraud Events, Internet Marketing Scams, Online Scams, Prevent Scams | Subscribe to comments | Leave a comment | Trackback URL