Unsolicited calls from debt settlement providers are at an all time high and are also getting very aggressive in their solicitation of distressed Americans in trying to enroll them in a debt settlement or reduction program. The Federal Trade Commission has set rules about what can be said and how in regards to soliciting debt settlement programs. Most of these debt settlement companies have no regards to the rules when soliciting distressed Americans.
The truth is that these unsolicited calls come from companies that generate leads then sell the leads to other companies or individuals who can provide the debt settlement service.
Unfortunately, the actual debt settlement provider has nothing to do with the unsolicited calls but still buys these potential leads with information like your name and phone number for between $25 and $40 dollars. The first unsolicited call is a “come on” containing false information meant to get your attention; these are usually recordings. A recently received example goes like this, “In 2012 the Federal Government instituted a program requiring credit card companies to reduce your interest rate. If you want to reduce the interest rate on your credit cards press 1.” After pressing the number one, another recording said, “Someone will call you to discuss reducing your credit card interest rate”.
Naturally, most people want to get their credit card interest rate reduced. After only a few hours, a debt settlement provider did call. However, neither the interest rate reduction nor the Federal Government requirement for credit card companies to reduce the interest rate on cards was ever mentioned. The only thing they wanted to discuss was a “hard sell” for “debt settlement” services, which is a typical “bait and switch” technique. They get your attention with the first call by telling you you can get your interest rate reduced and then bolstering this by also telling you the Federal Government mandated this action. The second call is “hawking” debt settlement services.
After speaking with this “debt settlement provider” it was obvious they had no regard for the rules set by the FTC. In addition, they never provided relevant information as to the negative aspects of debt settlement, an estimate for the total cost of their services, and even told us they did charge upfront fees, all of which are the kinds of things the FTC rules prohibit. If you have gotten these calls or are getting these unsolicited calls from a “debt settlement company”, do not let them fool you. More than likely, their intent is to get you hooked into a “program” that will end up being costly and leaving you in worse financial shape than you were before.
If you want to avoid being a victim of these scam artist, just do not become involved with them at all. If you get an unsolicited call, hang up and call a “real” debt settlement provider that is a highly experienced and qualified, licensed attorney who is licensed in your state to practice law.
Debt Relief attorney, Melvin Singleterry is a practicing attorney who specializes in consumer debt law including debt reduction, credit card debt negotiation and debt settlement, and unsecured debt relief. Singleterry, who holds Bachelor and Master of Arts degrees from Oklahoma State University and a Juris Doctor from The University of Oklahoma, has practiced in both State and Federal Courts. Contact Associated Attorneys with your questions about debt.