Warnings For Debt Consolidation Scams - KLTV.com - Tyler, Longview, Jacksonville |ETX News

1/12/05-Tyler

Warnings For Debt Consolidation Scams

  They ask for your bank statements and account information, but can you really trust phone calls from alleged debt consolidators?
  A phone call circulating around East Texas offers customers the chance to reduce debt. Chances are you've heard the message before.
  A company claiming to be a non-profit business ready to help you reduce debt with just a phone call.
  We called the toll free number and hear another recording. This time asking you to leave your name, number and information, never a real person waiting to help you.
You are invited to check out the company's web site, which promises cash, cash, cash.
  "Usually debt consolidation companies do not loan money."
Kay Robinson with the Better Business Bureau said debt consolidation businesses like this are popping up all over the place. Most she said, are not reputable.
  "If anyone claims that they can remove bad credit in other words provide credit repair for a bad credit rating that is a lie," Kay said. "That adverse information on your credit rating cannot be removed if it's true."
  Kay said the lure comes from the use of the term "non-profit," but don't be fooled.
  "Typically many of these companies that call themselves debt consolidators charge some pretty hefty fees."
  How about asking you for bank statements and account information by phone?
"Unfortunately they can draft off your account."
  Kay said a company like Consumer Credit Counseling Services is your best bet for non-profit help and if you have any questions about a company check with the Better Business Bureau.

Maya Golden reporting, mgolden@kltv.com

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