The new year is a time when a lot of people decide to get their finances in order. You may want to be careful if you are looking for a company to help. Today we are answering a question about debt relief and credit repair fraud.
You may be getting offers from companies offering to help get rid of your debt. Not all companies are the same, so do your homework before handing over all of your information.
Q: “Is (the company) Citizen’s Debt Relief a scam? Is it ok to work with them to consolidate your credit card debt giving your social security number and credit card numbers?” –Nick
A: We did some checking and Citizen’s Debt Relief is a legit company. The Better Business Bureau gives it a 4.67 stars out of five. There are minor complaints, but nothing about fraud. And yes, you will need to give your personal information to a company working on your finances.
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The Texas Attorney General’s office says a debt relief company may be fake if:
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They contact you first
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They ask for fees up front
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Offer recurring monthly fees for the service
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Pressure you to sign a contract on the spot
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Offer you a special deal on federal loans. Companies can’t do this, federal loan repayment levels are set by law.
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Pressures you to sign a “third party authorization” or “power of attorney”
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Requests your Federal Student Aid PIN
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Uses a name or logo that makes it seem as though the company is a government agency or is associated with a…
