Debts can be a great impediment to financial progress, particularly for small businesses. Making accurate revenue projections or drawing a robust strategic plan without worrying if creditors will soon come pounding on your doors is difficult.
Fortunately, there are numerous strategies you can implement to manage your debts and even achieve a debt-free lifestyle. One such method is debt relief.
But as with other debt management interventions, debt relief is not without its shortfalls. For instance, the financial industry teems with fraudulent players who are always on the prowl, looking for unsuspecting victims to pounce on. It’s imperative to understand the common tricks these scammers use to win their victims’ confidence and possibly defraud them of millions.
Read on to uncover the six warning signs of a potential debt relief scammer. But first, let’s understand what debt relief entails.
Introducing Debt Relief
Debt relief, or debt cancellation, refers to the partial or total forgiveness of debt owed by individuals, companies, or nations. The term may also denote debt growth’s gradual slowing or drastic stoppage.
Debt relief involves three parties – a debtor, a creditor, and a debt relief company. However, the debt relief company does much of the work. Their primary mandate entails providing the creditor a measure to partially or fully respite what’s owed to them.
Due to the sensitive nature of debt relief, choosing a debt relief company that’s truly worth its salt is imperative. Accredited Debt Relief is a household name in this sector.
But as anyone who’s never sought debt relief services from Accredited before, it’s natural to wonder – is Accredited Debt Relief legit?
The short answer is yes. Accredited is a legitimate debt relief company, as evidenced by many positive online reviews. Still, that doesn’t discredit the significance of learning about common scams while looking for a debt relief company.
How Do Debt Relief Scams Play Out?
Debt cancellation scams can assume one or both of the following forms;
- The scammer promises debt relief services, usually at a suspiciously discounted upfront fee. But once you pay, the fraudster disappears with your money.
- The scammer helps you reduce some of the debt. But then you realize that the total fees you had to pay, including the new interests and penalties, are far more than the debt relief benefits offered.
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6 Warning Signs of Debt Relief Scams
1. The Scammer Contacts You First
A debt relief company can reach out to you for help. However, you must have established prior contact with the firm for them to make follow-ups.
Beware of entities that contact you out of the blue purporting to offer debt relief services. Such are likely fraudsters seeking to swindle you from your hard-earned money.
The best way to handle potentially fraudulent phone calls and emails is to report them to the Federal Trade Commission (FTC). You could also discuss the matter with your service provider or local law enforcement authorities.
2. The Language Is Sloppy
Do they speak like the best debt relief company that ever existed? Is their tone overly persuasive or coercive rather than professional?
If yes, then you know you’re dealing with a seasoned fraudster.
Grammar is another key aspect of language to look out for. No self-respecting debt relief company would hire inarticulate personnel for such a sensitive role.
3. The Scammer Asks For Upfront Fees
Asking for a down payment is probably the most widely used scam tactic. It’s the surest red flag that you could be minutes away from getting swindled.
Debt relief scammers typically ask for some upfront fee before rendering their services. Some scammers may request a ridiculous amount. But in most cases, the fee is low enough to escape your instincts.
Either way, avoid paying out money to any supposed debt relief company before vouching for their credibility. In fact, the Federal Trade Commission’s (FTC) Telemarketing Sales Rule prohibits debt relief services from asking for upfront payments.
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4. There’s No Valid Written Contract
Another tell-tale sign of a debt relief scam is when there’s more talking and less official proof to back it up.
A legitimate debt relief company will gladly furnish you with a written document spelling out the terms and conditions.
Even if this is lacking, the supposed debt relief entity should at least disclose its official company information.
5. The Scammer Makes Unrealistic Claims
Con artists are known to make exaggerated claims to win the confidence of their potential victims.
These hyperbolic promises are often intended to persuade even the most hesitant people. And since you’re already in distress due to your growing debts, you’re likely to fall for them.
However, remember that debt relief companies cannot promise that a creditor will reduce or forgive a debt.
6. The Scammer Tells You to Cut Ties with Your Creditor
There can never be any justifiable reason to stop communicating with your creditor.
So, beware of any debt relief company asking you to sever links with people you’re indebted to. Worse yet, do not engage entities that ask you to stop meeting your debt obligations.
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Wrap Up
Most people fall for debt relief scams for lack of information. Hopefully, you’re now better informed to tell these scams miles away.
