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Friday 8 June 2012

Be Careful of Mis-selling Debt Solutions

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Since the credit crunch, many people have either received telephone calls or letters through the post, as well as adverts on the TV promising to write off debts legally. Infact, many of these companies who are on the phone asking you how many credit cards you have or how many loans you have are mis-selling their products to catch you in their net in order to make themselves money from your misfortune. The government are now planning to crack down on this form of mis-selling to help protect people from falling for these new scams. The Ministry of Justice took action to close its 100th company who use these selling techniques to scam people which started in 2007 and have just announce their plan to combat these rogue companies who seem to have ballooned since the nation fell into a recession.
These companies who use cold calling techniques and pressure telling tactics to win new business state that they can write off debt using loopholes on a legal basis. These claims are unfounded and can leave a vulnerable debtor in a worse situation than they are currently experiencing. There are some reputable debt companies who can help you resolve a debt situation who will require a fee to cover their costs, but the rogue companies are ones who are making false promises and taking administration fees leaving debtors out of pocket without the help they have promised.
Ideally, when a company calls you up asking for information on your debt situation the person they have called should put the phone down and not enter into conversation. However, since many people are struggling with debt for the first time, they are not clued up enough to notice when they are being scammed and are more attracted by the possibility that their situation can be resolved by this company. It is advisable that if you are facing a debt situation, that you do your research into which companies are trustworthy. Common knowledge should tell us that cold callers are generally not calling you for your benefit; rather they are hoping to benefit from you. This is the danger area as you can only take what they say and people can easily be mis-informed.
With the strain on debt companies since the credit crunch, it may require patience before the wheels start turning to help resolve the situation, but in the meantime, you can call up your creditors and inform them that you are in the process of getting advice and help which will resolve the situation and request the creditors put your account on hold for a few weeks until you have further news for them.
You may still have to deal with telephone calls and letters during this time, but this is because it is normal procedure and the computerised systems work in such a way that until an account has progressed to a certain status, then it will continue to bring up your details in call centres and send letters as a part of the collection process. The important thing is not to fall for scams from cold callers and to do your research into any company that promises solutions to your debt situation.
Roger Fedrick is associated with Advise On Debt Consolidation. He is Masters in Business Administration and writes on various finance related topics. To find debt consolidation, debt management consultants, debt problems, debt advice, debt consolidation loan, credit card debt consolidation visit on http://www.freedebtadvisor.co.uk or Contact me on following sites.
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Since the credit crunch, many people have either received telephone calls or letters through the post, as well as adverts on the TV promising to write off debts legally. Infact, many of these companies who are on the phone asking you how many credit cards you have or how many loans you have are mis-selling their products to catch you in their net in order to make themselves money from your misfortune. The government are now planning to crack down on this form of mis-selling to help protect people from falling for these new scams. The Ministry of Justice took action to close its 100th company who use these selling techniques to scam people which started in 2007 and have just announce their plan to combat these rogue companies who seem to have ballooned since the nation fell into a recession.
These companies who use cold calling techniques and pressure telling tactics to win new business state that they can write off debt using loopholes on a legal basis. These claims are unfounded and can leave a vulnerable debtor in a worse situation than they are currently experiencing. There are some reputable debt companies who can help you resolve a debt situation who will require a fee to cover their costs, but the rogue companies are ones who are making false promises and taking administration fees leaving debtors out of pocket without the help they have promised.
Ideally, when a company calls you up asking for information on your debt situation the person they have called should put the phone down and not enter into conversation. However, since many people are struggling with debt for the first time, they are not clued up enough to notice when they are being scammed and are more attracted by the possibility that their situation can be resolved by this company. It is advisable that if you are facing a debt situation, that you do your research into which companies are trustworthy. Common knowledge should tell us that cold callers are generally not calling you for your benefit; rather they are hoping to benefit from you. This is the danger area as you can only take what they say and people can easily be mis-informed.
With the strain on debt companies since the credit crunch, it may require patience before the wheels start turning to help resolve the situation, but in the meantime, you can call up your creditors and inform them that you are in the process of getting advice and help which will resolve the situation and request the creditors put your account on hold for a few weeks until you have further news for them.
You may still have to deal with telephone calls and letters during this time, but this is because it is normal procedure and the computerised systems work in such a way that until an account has progressed to a certain status, then it will continue to bring up your details in call centres and send letters as a part of the collection process. The important thing is not to fall for scams from cold callers and to do your research into any company that promises solutions to your debt situation.
Roger Fedrick is associated with Advise On Debt Consolidation. He is Masters in Business Administration and writes on various finance related topics. To find debt consolidation, debt management consultants, debt problems, debt advice, debt consolidation loan, credit card debt consolidation visit on http://www.freedebtadvisor.co.uk or Contact me on following sites.

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