Duped! The 5 Worst Recession Scams

Posted on September 2, 2011 at 9:00am by

The axiom, “If it sounds too good to be true, it probably is!” remains an enduring and unassailable truth. But during the stubbornly long-running downturn, desperate people suspend disbelief.

Number 4 on this list caught our eye today as we see clients all the time who fall victim to debt reduction or debt consolidation scams.

Get Out Of Debt Now It’s not just the government that has debt issues many Americans are carrying debt that can take decades to pay off. So an opportunity to help consolidate, renegotiate and reduce those debts would seem worth the initial fee that many debt-consolidation scammers require. But as with most recession scams, the up-front fee is a red flag. Once debt-relief scam artists get that fee, most don’t negotiate with creditors at all. The same new FTC rule that prohibits up-front fees for mortgage modification bans them for debt-reduction services, which is good news. And good timing, too. The Better Business Bureau (BBB) estimated that debt-reduction scams spiked by 30 percent in 2010.

Still, fraudsters continue to take advantage of too many Americans who have too much debt. One, a robocall-powered scam called PDM International, charged four-figure fees for dubious debt-reduction services and used deceptive tactics like having the calls sound similar to a credit card company. Luckily, the FTC broke up the scammers and fined them $13.8 million in late May.

If you’re faced with mounting debt, take a moment to consult an attorney at The Sader Law Firm about your options. We have more than 30 years of combined experience and can help provide you with real financial freedom. If you live in Kansas or Missouri, contact Neil Sader today for a free consultation at (816) 561 1818 to learn more about the options available to you.

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