The New York State Attorney General is suing several so-called student loan debt relief companies for fraud. They are Debt Resolve, Hutton Ventures and Equitable Acceptance. Typically, these companies take your money and over promise their ability to cut or eliminate your student loan debt. THEY ARE SCAMS—but they aren’t the only ones out there. BEWARE.
Here are my five rules for avoiding a Student Loan Debt Scammer:
DON’T CALL ME, I’LL CALL YOU. Did the Student Loan Debt Relief Company contact you? If you suddenly got a call or email out of the blue from someone saying they can solve your student loan debt problem, BE WARY, VERY WARY. This is probably a trolling scammer who has reviewed (possibly illegally) your credit report or has access to your online searches and is trying to hook you into an expensive program that WON’T solve your problem.
IT’S YOUR MONEY. If the Student Loan Debt Relief Company asks you for automatic bank deductions to pay for their “services” OR a “power of attorney” to solve your problem, RUN do not walk away from this scam. My office has resolved literally 1,000’s of debt problems and I have NEVER asked for either because it is simply not necessary.
WHO’S ON FIRST? If you do decide to work with one of these Student Loan Debt Relief Companies, but they direct you to pay a DIFFERENT entity then the company that contacted you, DON’T send that check. That is also a sure sign of a fraud.
ACT LOCALLY. You like to eat foods produced locally, right? It’s healthier for you and better for the environment. Solve your Student Loan problem the same way. If you are contacted by a Student Loan Debt Relief Company that is outside your State, be very careful. While some out of state entities may be legit, every state has different consumer protection laws that regulate these types of companies, and some states don’t regulate them at all. You may be dealing with a Student Debt Relief Company that is largely unregulated. Do you really want to give them your money? Think of it another way….you send them their “fee” to tackle your Student Loan problem. Months later you find out you got scammed and they did nothing to help you. Who do you call to get your money back? If you worked with someone locally, you can go right down to their office.
TOO GOOD TO BE TRUE. If you have a lot of student debt you probably know a little about the options available to you. If the Student Loan Debt Relief Company has a “magic system” or “insider secrets” that guarantee the elimination of student loan debt, think twice. Student Loan Debt Relief is complex and multifaceted. There are tried and true ways of reducing some student loan debts and then there are others that are very difficult to resolve. There are no guarantees, and anyone who is offering you that, is scamming you.