debt eliminate plan

							                                                                                                                                                POINTS TO REMEMBER

                         BEWARE OF DEBT
                                                                                                                                                           DEBT
                         ELIMINATION SCAMS                                                                                                                 ELIMINATION
                         by Texas Attorney General Greg Abbott
                                                                                                                                            Be diligent in paying bills and debts today
REBUILDING    A   GOOD    CREDIT   RATING     debts. Once a consumer paid off his debt,     ultimately be the creditor’s decision if        to ensure good credit in the future. For assistance
after a hardship takes time and               the “loan” would be forgiven.                 they wish to accept an offer made on            with credit problems, education and counseling:
good management. Credit counseling               The $5,000 fee was actually deposited      your behalf, including the renegotiated         NATIONAL FOUNDATION
services and debt repayment plans both        to an account in the name of “Del             amount owed and the timeline in which           FOR CREDIT COUNSELING
offer long-term, practical solutions to       Sur International Holdings,” which            it must be paid.                                (800) 388-2227
debt management.                              our investigators traced to Panama.              And even if the creditor accepts the         www.nfcc.org
   But where there are debt-weary             Bankopp.com’s owner never offered any         offer, they will likely inform credit
consumers, there are fast-talking op-         evidence in the case that a “bank” even       bureaus that you did not honor your             For assistance with credit problems that could
portunists who promise quick relief and       existed.                                      original agreement with them. That              result in mortgage default or foreclosures:
“debt elimination” plans that are “100%          In truth, Bankopp.com and its assoc-       information could remain in your credit         HOUSING AND URBAN DEVELOPMENT
guaranteed” to erase your bad credit.         iates were simply out to cash in on the       history report for several years.               (800) 569-4287
These types of claims are usually false or    misery and vulnerability of overwhelmed          Debt settlement will not prevent neg-
                                                                                                                                            www.hud.gov/foreclosure/index.cfm
misleading. Despite what a credit repair      consumers.                                    ative marks against your credit history.
company may tempt you to believe, there          Legitimate financial assistance in the      If you fail to pay your bills in full and       For a copy of your credit report:
is no easy way to fix bad credit.              face of seemingly impossible debt is          on time, this will likely make it more
   This summer, my Consumer Protection        available. If you have a problem paying       difficult to obtain credit or, in some cases,    EXPERIAN
Division closed down a fraudulent             a debt, immediately contact your creditor     even future employment.                         P. O. Box 9532
“debt elimination” operation which tar-       and find out if you can make alternate            If a creditor does not accept an offer       Allen, TX 75013
geted victims of last year’s hurricanes as    payment arrangements. Ask if and how          from a debt settlement company on               (888) 397-3742
well as other consumers facing financial       this will affect your credit history. Even    your behalf, the creditor can continue          www.experian.com
difficulties.                                  if creditors reduce the payments and          to attempt collecting directly from you,
   Bankopp.com and its owner David            give you more time to pay a debt, it most     including through a lawsuit or other            EQUIFAX
Jason West promoted a scheme through          likely WILL show up for several years on      legal action.                                   P. O. Box 740241
seminars in various states in which           your credit report. Creditors are generally      Know all fees a debt settlement              Atlanta, GA 30374-0241
hurricane victims and others were             willing to negotiate terms directly without   company will charge before you contract         (800) 685-1111
fraudulently promised the complete            the need of a debt settlement company.        with them, above the amounts that will          www.equifax.com
elimination of debt within a few                 Consider talking to an attorney before-    be used to pay creditors directly.
short months.                                 hand and ask for an explanation of the           If you are transferring money to a third     TRANS UNION
   To become enrolled in the program,         different legal choices available to you      party to pay your creditors, be sure to check   P. O. Box 2000
however, consumers were required to           and the consequences of each before           periodically with your creditors directly to    Chester, PA 19022
wire a one-time $5,000 deposit to an          you stop paying a debt. A debt settlement     ensure that your debts are being paid.          (800) 916-8800
unidentified “bank” that would initiate        company cannot offer you legal advice or         Remember, there are seldom quick             www.tuc.com
the debt elimination process and use the      representation.                               fixes to your credit history if it reflects
deposit to defray the costs of the process.      Do not trust a debt settlement company     legitimate debts you did not pay. The
Once the cumulative debt of applicants        that “guarantees” fast results and assures    key to rebuilding your credit is to
reached $100 million, the bank would          you your credit will not be negatively        manage your debt and to consistently
begin making loans to pay off individual      affected by using their services. It will     pay your bills on time.