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Be Careful of Consolidation Debt Fraud

Consolidation is not as simple as some claim

Businessman with his hand raised in signal to stop, isolated on black background, Studio shot

The last few years were a financial disaster for many Americans. It was not just the loss of a job but the loss of the annual pay raise which cut into the livelihood of many families. A result was over dependence on credit cards. People used credit cards for even the smallest purchases. The balances grew as accrued interest added to the figures. It wasn’t too long before credit card debt swallowed all of disposable income. At this time the scammers came out of the woodwork. So-called “debt consolidation companies” promised to help consolidate debt into one payment. It was almost too simple. Folks wanting to have one payment instead of a lot fell for the deception. They put their trust in some unethical third parties with the hopes that consolidation loan would help financial wellness. The exact opposite is what happened.

Doing the Dirty Deed

Those who attempt to deceive will try to present themselves as legitimate. This includes claiming to be a non-profit organization and that is not true at all. These scammers are in it for a profit from the beginning, and the advice given is not helpful at all. Conditions required of the unsuspecting victim will send this person deep into debt. These include:

  1. Excessive sign up fees;
  2. Service fees which are charged on a monthly basis;
  3. A sizable percentage of the existing debt.

The service rendered does not justify the means. Creditors may not honor the proposed payment plan developed by a debt consolidation company. What it all boils down to is that a person trying to regain fiscal sanity gets into worse trouble. This individual may be distracted by the stress, causing work productivity to suffer. Financial wellness programs offered by an employer is the kind of benefit that is going to be appreciated. Countrywide Pre-Paid Legal Services offers such an employee benefit for consideration.

The Advice of a Seasoned Veteran

Countrywide has a network of financial wellness counselors waiting to be of assistance. These professionals will go over the offers of consolidation debt companies, pointing out where the problems are and suggesting some very viable alternatives. The counselor can send a warning flag about some of these companies, and let the plan member know that signing an agreement is a bad idea. The counselor is also willing to research the debt consolidation company to determine whether or not it is a fraud.

The alternatives these counselors provide are useful. A financial wellness plan member is shown ways to consolidate debt the proper way. Sometimes, a financially distressed person will take a consolidation loan that charges a higher interest rate than the existing debt. The counselor will point that out before any paperwork is signed.

The Client is Served

A consequence of the service provided is an employee who is less anxious about debt. He or she is better able to concentrate on the business at hand. The advice is a service Countrywide provides to the individual, but the client is served as well. Our benefit plans are intended to provide choice. The client organization may decide what features the financial wellness benefit will have. We will see to it that benefit administration is efficient. In addition, we will provide the type of member service every participant has a right to expect.

Credit card debt is a monster of the times. Consolidation can help but has to be done properly. No one should be left to the mercy of an organization seeking to charge massive fees. Countrywide has the financial wellness counselors on board to prevent an even greater financial problem. The counselor’s service is just part of the benefit. We have other options which a prospective client may want to think about. We have the kind of assistance necessary to help any person get back on the road to financial security. We encourage decision-makers to get in contact with us.