DEBT ELIMINATION / DEBT REMOVAL SCAMS
Beware of Debt Elimination or Debt Removal Companies!
Debt elimination companies claim that for a fee that they can eliminate your debt once and for all; that you will never have to make another payment on your mortgage, car, credit cards etc ever again and that there will be no repercussions.
These companies target people with their ads for quick, legal elimination of all of your debt through email, websites, junk mail and seminars.
Hellllooooo??? Is anybody in there? Who in their right mind would believe something like this for even half a minute? Seriously folks, this is as rich as the scammers that convince people not to pay their taxes because it's unconstitutional.
These companies claim that the debt that you have incurred is not really legal debt. They base their actions on Title 15 United State Code, section 1692, the Fair Debt Collections Practices Act, section 1601, the Fair Credit Billing Act and the Uniform Commercial Code, section 203. Many of them also claim the Declaration of Independence condones these actions, while other times they question the authority of the Federal Reserve and the legitimacy of the U.S. dollar.
Here's how it all works, for a large upfront fee of usually $2500 to $3500 you get to listen to or read their rhetoric about these supposed legal loopholes that they have found and then you are issued a bogus certificate that you are instructed to take to your bank and creditors. This magic certificate sites these loopholes and is supposed to eliminate your obligation to pay your credit cards, mortgage, car loans and other debt. Many of these companies also offer their followers access to their panel of legal experts whose superior knowledge of the law and silver tongues will keep you out of trouble.
Now here's what they don't tell you, these idiots influence on desperate people has caused more than one eyebrow to be raised and the offices of the Federal Reserve Board and the Office of the Comptroller of the Currency (which regulates the national banks)have sent out notices and alerts to all of the banks that they regulate. These alerts order banks to immediately confiscate any documents that the customer brings to them and to also send a suspicious activity report to the FBI. This report is the real deal people; it's the very same report that's used to alert the FBI to money launderers, and terrorists activities.
From the FBI 2003
Beware of scams like these --
Debt or mortgage elimination offers. The perpetrators of these schemes
offer to take advantage of 'loopholes in the system' that will
eliminate your entire mortgage for an up-front fee. Don't believe it.
There are no "loopholes."
Federal Bureau of Investigation: Fraud Alert
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Participating in these scams not only makes the Federal Government very angry but lets not forget what it will do to your credit. Taking part in one of these ridiculous programs will result in high interest rates, late fees and penalties for non payment and possible foreclosure and repossession if it goes on long enough.
Once again we are reminded of the fact that there really is NO FREE LUNCH. We have to pay our bills. Don't be a victim.
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