How to Avoid Being Ripped-Off by Fake Debt Consolidation Companies

How to Avoid Being Ripped-Off by Fake Debt Consolidation Companies

When you’re struggling under a mountain of debt, the last thing you want is to be ripped off by those who have promised to help you. Unfortunately, it is common for scammers to take advantage of those in need of help. In recent years, thousands of individuals struggling to repay their loans have fallen prey to scammers viciously pursuing those facing financial crisis.

Therefore, it is crucial to peruse the situation before jumping into an agreement. This can not only save you thousands of dollars, it can save you from depleting your financial resources.

If you are in debt or have filed for bankruptcy, getting back on your feet can be a challenge. However, do not despair as the right credit consolidation company can help you manage your finances and save you the hassle of dealing with a fake one. Here’s what you need to know:

Don’t Pay Upfront

They are well aware of the fact that you are desperate. Therefore, it is important to be careful and cautious. It is illegal in Canada for credit consolidation companies to call you and ask for an advance fee. Furthermore, many fake companies promise to deliver the loan after you’ve made payments but disappear after you’ve paid.

Don’t Trust ‘Non-Profit’ Status

Do not trust companies who claim to have a ‘non-profit’ status. Just because a company has a fancy, nice-sounding name, doesn’t mean it’s not trouble. Therefore, go for a well-reputed company that not only promises to deliver but keeps that promise. The last thing you want to deal with is the stress of broken promises and unfulfilled commitments.

Don’t Provide Your Personal Information

While this is a no-brainer, it can land you in hot water because fraudulent companies are skilled in the art of scamming their way through your bank account. Not only are they tactful, they know how to make your see a false image and promise you hope.

Therefore, if you come across a credit consolidation company that asks you to provide your credit card numbers and bank account details before telling you everything about themselves, avoid them like the plague. A credit consolidation company should be transparent in the ways they deal and tackle with the financial problems of debtors.

Getting information on the credit consolidation company you will be working with should be free of cost. If a company charges you for appointments or consultations, know they are up to something.  Credit counselling should be about helping you, the debtor, rather than causing you more distress!

For a quick assessment and free consultation, book an appointment with us today!