They Promise to Fix Your Credit before Even Looking at the Report
Just as the three primary credit bureaus in use around North America are under legal obligation to delete any errors or misprints in a credit report once they’ve been brought to the attention of the credit agency, they also cannot willfully erase marks that honestly should be included as part of a borrower’s history. Companies that swear they’ll immediately fix your credit once they’ve been paid are more likely to do absolutely nothing once cashing the money order.
They Dodge Questions about Costs or Negative Consequences
Obviously, any inquiries clumsily avoided should raise suspicions among potential clients. A trained debt relief officer should know his or her field backwards and forwards. However, if the debt relief representative seems unwilling to explain the estimated expenses line by line, there’s surely some sort of scam brewing. As important, beware of debt relief firms that refuse to highlight any of the less favorable repercussions that each form of professionally assisted debt relief sadly features. If the debt relief officer appears so excited about earning your business that he’ll fudge the truth about credit score hits or the (small but still existent) threat of lawsuits, who knows what else he may be hiding.
They Demand to be Paid in Full Before Starting their Work
While a certain initial cash outlay may be requested from some forms of debt relief, anything more than a symbolic amount should raise eyebrows. The process of debt relief will not be completed in a matter of days, after all. Any substantial debt relief maneuver will take months upon months of steady compensation of past lenders, and the vast majority of debt relief companies will expect their fees (even sizable fees as with settlement negotiation or equity consolidation loans) to be incorporated as part of the overall repayment schedule. Insistence upon paying the debt relief company before all others – including the companies holding the debts that were supposed to be relieved – almost definitely suggests a scam.
They Don’t Have A Real Address
An increasing number of businesses hawking all manner of goods and services have become less dependant upon physical storefronts as just about every American becomes more comfortable shopping online. Once consumers realized that the brick and mortar stolidity of a financial institution was no guarantee of solvency, the convenience of web based debt relief (and the greatly reduced maintenance costs, with savings theoretically passed on to the customers) soon made internet foundations the norm. After all, for settlement negotiation and similar debt relief efforts, virtually all the work will be done over the phone in any case.
That being said, the web site should still indicate some physical locale where the debt relief specialists would be able to run credit and mail bills and spend those countless hours on the phone hammering out concessions from the creditors. If the internet portal does not list any verifiable contact information, this could mean that the debt relief company may be a one man band run out of someone’s basement. Or, worse, that no office exists because no work shall be done. Many of even the most elaborate web sites are nothing but false fronts intent on disguising a fly by night scam. Some careless borrowers find that the web site and all reference to their new debt relief business have disappeared from the internet once their first payment has been received.
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