Posted on 12 June 2011
Tags: advertisements, Business_Finance, company, Confidence trick, Debt, Debt Consolidation, debt consolidation company, debt consolidation services, dire need, doors, driver, electronic media, false promises, financial woes, first contact, fraud, fraudulent companies, lending institutions, loan, lookout, presence, scam companies, scammers, telephone conversations, television, Third Party, united states
For those of you who are looking to get professional help to solve your financial woes, consulting a debt consolidation company is the best option. However you need to be aware of the risks that are involved.
Debt Consolidation Scammers:
There are many debt consolidation services that are not really what they look on the outside. There are many scammers in play. There is a constant presence of such fraudulent companies out there. These fraudulent companies are on the lookout for desperate people who are in dire need of help in solving their financial problems.
Such debt consolidation scammers use the print and electronic media to advertise themselves. This is the very reason why you should never believe everything you see on the television or internet.
Falling into the trap set by these scam companies can open the doors for more troubles for a person who is in debt. He could easily find himself in far more financial problems than before.
First contact with a fraudulent company:
If you have responded to one of the advertisements of these companies, you will get to speak with an agent that is actually a third party. Most of these telephone conversations will end up with you being offered a loan. Read the full story
Posted on 22 January 2011
Tags: Aspen, Aspen credit card, Business, business practice, charged-off debt, compucredit, consumer reporting agencies, credit card, credit card companies, credit customers, credit history, credit limit, Credit Repair, credit repair firms, Credit Report, Credit Score, debt balance, deceiving customers, deceptive act, Dirty Tricks, false advertising, false claims, Federal Trade Commission, financial services, first three months, FTC, hidden truth, higher credit scores, maintenance charge, poor credit, removal of bankruptcy, removal of late payments, scam credit companies, scammers, Telemarketing Sales Rule, time application, up-front fee, VISA, visa cards, visa credit card, Visa credit cards
It is no more a hidden truth that scammers are ready to take your money away by false claims. Luckily, customers can file complaint against such fraud companies and the FTC will take strong actions against these companies. Here are some examples of the actions which were taken by FTC against scam credit companies.
FTC’s Actions against CompuCredit
CompuCredit is a credit card company and it issues credit cards such as credit cards for people having poor credit. FTC charged this company, here are them:
This company was deceiving its customers for Visa credit cards. The Visa cards include the Aspire Visa credit card and the Aspen credit card. This company was marketing these credit cards for subprime credit customers. In their marketing they told that their customer will get a credit card with $300 credit limit without any up-front fee. In reality, this company was charging a fee of $185 without disclosing this fee to its customers. This fee includes:
- One time application charge
- One time application processing charge
- An annual charge
- Monthly maintenance charge
Apart from it, CompuCredit was also proclaiming its Visa credit card to customers having slightly higher credit scores, with the available credit of over $3,250. CompuCredit remained unable to reveal that the half of this amount would be withheld for the first three months. It also remained unable to reveal that it will keep a check on the customer’s purchases for first three months.
The worse deceptive act of the CompuCredit was the marketing of a Visa credit card for customers having charged-off debt. According to their marketing, the old debt balance of their credit card will be immediately transferred to the card and reporting to consumer reporting agencies that it is paid in full amount. The enrolled customers didn’t receive Visa card until they paid 25 to 50% of their charged-off debt.
FTC Actions against Credit Repair Firms
FTC took notice of the deceptive proclaiming and false business practices which was being made by credit repair firms. FTC raided 33 credit repair firms. Few of the false claims which these firms were making are as follows:
1: They were claiming that they can eliminate the accurate and negative errors from their customers’ credit report. It wasn’t true in most cases. A common thing is the bankruptcy which lasts for at least ten years on your credit report.
2: They were charging the up front fee without providing any service. They were collecting fee before providing credit repair services to their customers.
Read the full story
Posted on 19 July 2009
Tags: Advantages of Home Equity Loans, Collateral, Debt Consolidation, default, Disadvantages of Home Equity Loans, equity, home appraisal fee, home equity loan, Home Equity Scams, lien, Mortgage, property application fee, Pros and Cons of Home Equity Loans, repayment schedule, scammers, secured loans, tax deduction, title fee, unsecured loans
A home equity loan (sometimes abbreviated HEL) is a type of loan in which the borrower uses the equity in their home as collateral. These loans are sometimes useful to help finance major home repairs, medical bills or college education. A home equity loan creates alien against the borrower’s house, and reduces actual home equity. Home equity loans are one of the most popular home loans. It is a second mortgage loan that has the benefits of secured loans. Owing to this, it has led to many people opting for home equity loan.
Advantages of Home Equity Loans
The benefits that a borrower gets from the home equity loan make up the pros of the home equity loans. These are greater than any other form of secured and unsecured loans, as there is no risk involved for the lenders. It offers the maximum amount in proportion to the value of the equity. If the house is located in a prime area where the real estate is booming, the house can get appraisal of as much as even 125%. However, in most cases, a house gets at least 80% appraisal.
Read the full story
