Credit Report Blog
Website CertifiedPrivacy Protected

Say No to interest rate reduction pranks!

By Ruth Racey
Published: Saturday, October 24th, 2009

Because of the confusion of consumers over rising credit card interest rates, many have already become casualties of an old scam that has reached new heights today.

This new scam involves a live person or sometimes a recorded message from a certain business who will contact a consumer to offer lower interest rates for his or her credit cards.

If the client is paying 12% to 14%, the offer would be much lower, around 5% to 7%, which would seem very promising, especially if your balance is large. They will tell you how to save a lot of money if you let them do the talking instead of you.

The problem is, what they would do are things you can handle yourself, and for a terrible price. According to reports, their “help” charges range from $600 to $1,500 – just for making a call you can do by yourself. They will prepare a conversation with you and your creditor to ask for reduction in your rates – just the same as what you would do.

Reports say they charge high fees immediately to the client’s credit card. Their clients would then be convinced that they can refund their money and cancel the service if they are unsatisfied with the “help” the company is offering. However, according to a business bureau, no refunds have been returning to the unfortunate credit cardholders.

Currently, there are only a few companies who are involved in this scam – but since the economy is experiencing many problems, and consumers want to do almost anything to survive, more and more companies would eventually join in.

Another issue that arises from these unassigned telephone calls is identity theft. A caller would ask for the person’s credit card information and then treats it as his own. He would then change all the information which points to the true owner of the card. So for all of you, credit card information is something you should never ever give out in telephone conversations.

These perpetrators, most likely, are violators of Section 5 of the Federal Trade Commission Act, which forbids unjust and deceptive practices. They may have also violated the Telemarketing Sales Rule and other laws like the National Do Not Call list.

If you have already experienced this unjust practice, you need to report to your credit card issuer and disagree with the transaction. Then you should write a complaint that states the deals you made with that person or company. With the Fair Credit Billing Act, you have the right to file charges for insufficient or unsatisfactory services given you, and most of the time creditors know what to do.

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.