I
received an offer from an entity promising to eliminate certain debts that I
owe. An OCC complaint form was included in the information they sent. I was
asked to sign it but provide no additional information. Is this a legitimate
offer? No. You should contact your bank or lender if you have any questions
about the debts you owe. Your lender is in the best position to work with you to
correct mistakes or create a workout plan. If you need to modify your
obligations or request that a lender not exercise its rights with respect to a
debt (for example, its right to foreclose on mortgage property if you are in
default), you should contact the lender directly to discuss whether mutually
satisfactory arrangements can be made, without delay.
I
received an offer from an entity that stated it could eliminate certain debts
that I owe. I am having trouble making payments on my debts. I have the money to
pay the fee they are requesting. Why shouldn't I accept the offer? You
should not accept the offer because this is not a legitimate method of
satisfying debts. The offers have no substance in law or finance. You cannot
eliminate an obligation to pay a debt, simply by paying someone a fee regardless
of the amount you owe. Your lender will not recognize these arrangements as
legitimate and may take legal action against you. You should contact your lender
directly if you are having trouble making payments.
I
am current on all of my loan payments. Why would an entity other than my bank or
creditor offer to help me eliminate my debt? These companies focus on
consumers who are current on their debts as well and those who may be facing
foreclosure. The perpetrators claim that they can eliminate or cancel various
types of debt, including mortgages, credit card balances, student loans, auto
loans, and small business loans. All are designed to take your money by
collecting fees for doing nothing, stealing your identity, or both.
If
they steal your identity, they could run up substantial debts before you become
aware of it. Someone with years of good credit history can have it ruined very
quickly by using one of these companies.
I
am in financial trouble. What are the legitimate options for satisfying my debt?
There are three basic methods for satisfying all debt owed:
*
Pay the debt in full.
*
Negotiate new terms directly with the lender.
*
Declare bankruptcy in a court of law.
Keep
in mind that bankruptcy will be reported on your credit history for ten years
and may make it very difficult for you to acquire credit in the future.
Who
should I contact to report a fraudulent debt relief scam? The following is a
list of law enforcement agencies you can contact for assistance:
*
All debt elimination scams should be reported to the Federal Trade Commission
(FTC) by telephone at 1-877-FTC-HELP or via an electronic online complaint form,
which can be completed on their website at www.ftc.gov. If the fraudulent scheme
is presented via the Internet or e-mail, contact the Internet Crime Complaint
Center (IC3) at http://www.ic3.gov.
*
If the fraudulent scheme is presented by an individual or at a seminar, you
should contact the local office of the Federal Bureau of Investigation (FBI) or
the local financial fraud law enforcement organization.
*
If the fraudulent scheme is presented via the U.S. Postal Service, you should
file a complaint with the U.S. Postal Inspection Service, 222 S. Riverside
Plaza, Suite 1250, Chicago, IL 60606-6100 or via email at https://postalinspectors.uspis.gov/forms/MailFraudComplaint.aspx
For
addition detailed information on Debt Elimination Schemes, please visit our
website at:
www.occ.gov/topics/consumer-protection/fraud-resources/index-fraud-resources.html
