Higher consumer prices and growing economic insecurity have many Americans accumulating debt and finding it hard to manage.
This can make credit repair and debt relief services look like an attractive option. But the Better Business Bureau cautions consumers about relying on big promises about better credit and lower monthly payments.
Pamela Hernandez of the Springfield Better Business Bureau (BBB) office says, “Credit repair companies that offer quick fixes are often scams that disappear with consumers’ hard earned money.”
She says debt related services come in many forms:
* Consumer credit counseling firms that offer educational programs to solve educational financial issues.
* Debt consolidation firms that offer loans to pay off debts all at once;
* Debt relief or settlement companies that renegotiate debts with debtors;
* Credit repair agencies that promise to fix past problems on your credit report such as bankruptcy or late payment.
The companies that are calling or advertising online frequently promise – and charge for – impossible services.
This includes removing past credit mistakes, such as late payments or a bankruptcy, from your credit report. They offer to provide a new “credit identity” or negotiate with lenders or credit card company to completely eliminate the debt. BBB recommends before providing any financial or personal information to check out the company first.
Hernandez says that scammers often take money to consolidate…
