With consumers in a turmoil over rising interest rates on credit cards, an old scam is gaining new momentum … so do not be fooled!
In this scam, either a live person or a pre-recorded by Easy Financial message (or another company) will call and offer to negotiate a lower interest rate on one or more of your cards credit.
If you pay 12 to 14%, their promises of 5 to 7% will sound good, especially if you have a large balance. They explain how many dollars you’ll save over time if you let them do the trading for you.
The problem is, they will not do anything you can not do yourself, and they will charge you a lot for it. The fee is reportedly between $ 600 to $ 1500 – to make a phone call, you can do yourself. They will set up a conference call with you and your credit card issuer, and simply ask the reduction – the same as you could.
In some cases, they will set up an account with a transmitter of different maps and help you transfer your balance.
According to reports, they charge high fees in advance – immediately charged to your credit card – and say you can cancel the service and receive a refund if you are not happy. Unfortunately, according to reports at the Better Business Bureau, refunds have not been forthcoming.
Right now, the main player in this scam is easy financial – but since this is a lucrative business in an economy where consumers are struggling to keep their heads above water, we can expect others to join to.
A second danger of these calls is identity theft. The caller will ask your credit card information – something you should never give over the phone unless you are the person who initiated the call.
This company – or these companies – are probably in violation of Article 5 of the Federal Trade Commission Act which prohibits unfair and deceptive practices. They may also be in violation of the Telemarketing Sales Rule and the National Do Not Call List numbers.
If you have been scammed, the first thing to do is contact the issuer of your credit card and challenge the transaction. Then follow up with a written complaint. According to the Credit Billing Act, you have the right to dispute charges for services not rendered, and most credit card companies are good about removing these costs.
If you do not already have a protection against identity theft get it now because you never know what is on your credit report until you need money.