Over the years, there have been many financial scams, more often than not, preying on vulnerable people who are trying to get out of debt. Debt settlement orders are just the latest in these types of scams, but they have the potential for costing those already swimming in debt even more money and wasted hope and effort. The simple fact of the matter is, there is no such thing as a “debt settlement order”, it is just a clever scam to obtain your personal information and make a quick buck off those who are trying to get their financial lives back in order.
How does this scam work?
The offer for debt relief via this so-called debt settlement order is sent through an unsolicited text message, most often targeted at those who are mired in a great deal of debt. These text messages claim that there is a new program that can help eliminate or erase excessive debts. You are prompted to reply to receive more information, as well as to stop receiving further text messages. Once you reply, it is then known that your number is, in fact, a live and active one. Many have reported being inundated with excessive numbers of offers from a number of highly suspect debt relief agencies, even when they simply responded with the prompt “STOP”, that is supposed to indicate that one is not interested in said debt settlement offer.
Debt settlement offers are not recognized by any governmental or financial agency and there is no oversight for this so-called debt relief system. In fact, it is actually a pretty simple scam. A mass number of text messages are sent out to many different phone numbers, some of which are actual, active phone numbers, some of which are not. When you respond, either asking for more information, or asking to stop receiving texts, your information is stored. This personal information is then sold to other financial services companies.
These companies often offer financial advice, and pie-in-the-sky promises that they fail to come through on. Many who have fallen prey to this scandal have found themselves in even more debt by falling prey to the further solicitations they receive. These companies often want an upfront fee for their services, and then when nothing happens, you are just out that much more money.
How can you protect yourself from this scam?
The best advice for how to avoid the frustrations of this scam to begin with are simply to not respond to any text message that claims that there is a new program that will eliminate your debt. If it sounds too good to be true, it more than likely is. If you do not respond, there is no way for the scammer to know if your phone number is active and valid or not, and will thus result in the cessation of calls. Report any unsolicited text messages to the Better Business Bureau.
Be wary of any debt relief company that requires upfront payments for their services. Reputable companies will only charge you a fee if they obtain a successful settlement of your debt. It is recommended that you research any debt relief company before doing business with them to ensure their legitimacy and to protect yourself from being scammed.
