Primerica Warns Consumers about Debt Payoff Scams

A recent survey shows the median amount of household credit card debt is $6,600 and the average debt load is almost $9,900. Further, of the 88 million credit card carrying households, 61% carry a balance from month to month.¹

If you feel like you’re sinking under the weight of debt, looking into a debt or credit “help” firm may seem like a good idea. But some of these firms that promise to eliminate debt or repair credit may not be operating in compliance with the law, and doing business with them could have long term negative effects on your credit report and ability to get credit.

Here are six key “red flags” to look for when you’re researching a debt elimination or credit repair service.²

Red Flag #1: The company wants you to pay for credit repair services before any such services are actually provided.

Red Flag #2: You are not made aware of your rights and no information on what you can do to help yourself for free is provided.

Red Flag #3: The firm recommends you do not contact any of the three major credit reporting companies directly.

Red Flag #4: You’re told that the debt firm can get rid of most or all of the accurate negative information in your credit report.

Red Flag #5: The company suggests that you invent a “new” credit identity.

Red Flag #6: You are advised to dispute all the information contained in your credit report regardless of its accuracy or timeliness.

For more information about debt payoff scams, contact the Federal Trade Commission. To learn about Primerica’s debt solutions, visit www.Primerica.com.

1 Los Angeles Times, www.latimes.com, viewed June 8, 2009
2 www.FTC.gov, viewed February 25, 2009