Beware of debt collection companies or companies working with debt collection companies that offer you a credit card if you repay, in part or in full, an old debt that may have expired. Companies may use terms like “Fresh Start Program” or “Balance Transfer Program” to describe offers to transfer your old debt to a new credit card account after you make a certain number of payments. If you accept the credit card offer and start making payments, the debt collection agency’s time limit (statute of limitations) for suing you to collect this debt will restart. The company offering the credit card may not tell you that this is a consequence of getting the credit card.
By: Undisputed Legal/Court Service Department
Many companies send offers to help you solve all of your debt problems quickly for a low fee.
Sounds like a good offer, right?
WRONG. Unfortunately, if an offer seems too good to be true, it usually is. Many of the companies promising to help you with your debt problems will actually cause more grief in the long run. Learn how to spot the signs of a scam.
Signs a “debt help” company is trying to “scam” you:
It promises to remove all of your debt. Debt does not disappear unless you pay it off. Any company that says it can get rid of your debt is trying to rip you off.