Point Break Financial Scam Warning- BBB Scam Alert: Credit Repair And Debt Relief Scams

Point Break Financial Scam Warning- Many Americans are accumulating debt as a result of rising consumer prices and growing economic insecurity, and they are finding it difficult to manage that debt.

It is easy to see how credit repair and debt relief services might appear attractive as a result of this, but the Better Business Bureau cautions consumers not to put all their faith in promises made about improving credit and reducing monthly payments.

In their opinion, experts with the Better Business Bureau (BBB) have stated that companies that offer quick fixes usually end up robbing consumers of their hard-earned money by operating as scams.

There are many different forms of debt-related services that can be provided, according to them:

• There are consumer credit counseling firms that offer financial education programs to help students resolve their educational and financial difficulties. 
• Companies that provide debt consolidation loans for the purpose of paying off debts all at once;
• Companies that renegotiate debts with debtors as part of a debt relief or settlement program;
• An agency that promises to repair your credit rating if it has been damaged by past credit problems, such as bankruptcy or late payments, should be avoided. 

As a result of the companies that are calling or advertising online, it is common for them to promise – and charge for – impossible services.

It includes removing past mistakes on your credit report, such as late payments or bankruptcy. They offer to provide a new “credit identity” or negotiate with lenders or credit card companies to completely eliminate the debt. Before providing any financial or personal information to this company, BBB recommends checking out its reputation.

As a result, scammers often defraud borrowers by charging a fee and monthly payments for consolidating student loans. For example, a woman from Missouri lost $1,500 during this fraudulent scheme before reporting it to the police.

This is how they recommend spotting these types of scams: 

• Advance fees are a concern. A company that promises to help you repair bad credit is not necessarily a scam, but if you are asked to pay in advance, you should be very cautious. In both the United States and Canada, credit repair and debt relief services can only collect their fees after they have provided their services.
• Do not believe in guarantees. It’s impossible to guarantee that debts will disappear or that your credit score will improve. In fact, it’s impossible to promise you anything before you have even reviewed your personal financial situation.
• Beware of the big promise. Another red flag is the big promises, such as removing negative information from your credit report or encouraging you to get a new identity or apply for an Employer Identification Number to use instead of your Social Security number (that’s a crime, by the way). Another warning sign is when the contract is vague or there is no contract at all.

Visit bbb.org for more tips and assistance or to report credit scams to the BBB, go to bbb.org/scamtracker for more information and assistance