9 Warning Signs To Help You Spot a Credit Counseling Rip Off a Mile Away (Part 2)

Family Credit Counseling Warning Sign #5
It’s a sales pitch to hard close you from the moment you contact them! The reason it feels that way is because almost everyone in the equation works on commission and if they don’t sell you, they don’t get paid. They are trained to hammer potential Family Credit Counseling clients until they cave in.

They are taught every objection one could possibly throw their way and how to counter it with hard close responses. The bottom line; they have got to get upfront fees from you by any means necessary. If they allow too many potential victims to walk away without getting sells, they will get fired!

Family Credit Counseling Warning Sign #6
The company refuses to divulge its owners or management team. This is a clear omen folks! The only time a company hides or does not reveal who their owners are is when they have got something to hide. A legitimate company operating in integrity and within the confines of the law will reveal who owns the company and who’s running it. Virtually all of the companies involved in the debt and credit flim flams are experts at attempting to hide who’s behind their operation. This helps them avoid putting their names on the law enforcement radar.

Family Credit Counseling Warning Sign #7
They receive some form of compensation from creditors. This unethical and underhanded strategy means that the credit counseling company is actually a partner with the creditors. In law that is called a conflict of interest! Yep, it’s actually a secret partnership. Unbeknownst to the average consumer, there are numerous family credit counseling firms that receive incentive payments (in reality, these are commissions!) from creditors for enrolling clients into (DMPs), Debt Management Plans.

The payments from the creditors to the credit counseling companies are called “fair share” payments. A blind man can see the ethics violation in this situation. The question is asked, “Who are these Family Credit Counseling companies actually representing?” And the answer is, they are representing the creditors, not the consumers! 

Family Credit Counseling Warning Sign #8
They Hammer You For Upfront Fees! The moment you realize you are being pounded for upfront fees, it’s time to R-U-N! If you hang around for their next act, you may find yourself writing them a $1500.00 check and get NOTHING in return! When a family credit counseling company charges upfront fees, you might as well expect the worse because that’s what you’re going to receive.

I hate to be the bearer of bad news in that regard but it’s a fact; they take the money and run! There are plenty of legitimate family credit counseling organizations that are non profit and they charge no fees. That’s the type of organization you should be seeking to help you with your debt problem.

Family Credit Counseling Warning Sign #9
They are Jack-of-All-Trades! They don’t specialize in anything and actually know very little about credit counseling. If you notice, they don’t provide any educational materials nor do they hold any financial classes for clients. The people doing the sells pitches know less than you do about debt, credit and finances. The key to their success is having a bunch of hard nose sales reps who would sell expired milk to their grandmothers.

When see a company offers multiple services such as: debt management, stop foreclosure services, credit repair, credit counseling, equity lines of credit, bankruptcy referrals, loan modification, home loans, auto loans, etc., that is a clear warning sign of mismanagement and ineptitude.

But would you expect anything less from a money grubbing company hell bent on ripping people off? Oftentimes, the people behind these schemes set out to get money any way they can. If you make the mistake of stumbling into their office or calling their sales line, be prepared to be hammered by their tenacious sales reps.
 

(Part 1) of 9 Warning Signs To Help You Spot a Credit Counseling Rip Off

Joel Marks has been helping people get out of debt and avoid both bankruptcy and foreclosure for over fifteen years. Utilizing savvy debt counseling, debt management programs, Federal laws and a team of attorneys, debt counselors and advisors, he has quietly assisted thousands come from under the heavy burden debt. 

 Source: http://debterasure.com/