Debt Collectors Are Tricking Consumers into Bogus Credit Card Debt Settlements
Popular credit and debt management website creditsabre.com warns about unscrupulous debt collectors who will trick consumers into signing up for a fake debt settlement.
If they cannot afford to, or even if they really cannot afford to, consumers would rather pay a lump sum settlement than have the uncertainty of non-payment hanging over them, says Thompson. That makes them vulnerable to a debt collector who claims he is authorized to settle a debt for the original creditor he is collecting for.
Typically, according to Thompson, who has a lot of contact with credit-card-debt-plagued consumers, the consumer “negotiates” an attractive settlement with the debt collector, perhaps only 20-30 percent of the original balance.
Then the debt collector tells them to send the lump payment for that mount and he will in turn send a written confirmation of the verbal agreement. “As you can guess,” Thompson says, “the consumer never receives that written confirmation.” The debt collector keeps 30 percent of the lump sum payment as commission and forwards the remainder to the credit card bank. The consumer still owes the untruthfully-settled remaining balance, he explains.
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According to Thompson, credit-card-indebted consumers are weighed down by feelings of hopelessness that prevent them from properly educating themselves about their debt alternatives. Their search for help makes them prey to debt relief scams and debt collector lies, he says.
Thompson’s complete blog posting on these bogus credit card debt settlements can be found at http://credit-card-debt-relief-4u.com/bogus-credit-card-debt-settlement-from-debt-collectors/
Tel: (508) - 796 - 5101
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