About the scam: Consumers get a call or an e-mail claiming to be from a government agency, such as the IRS , the Social Security Administration or any other kind of government agency. The consumers are asked to provide their personal information like their social security number, bank account number, or other sensitive details to process a rebate check. The e-mails will often include a link, if the consumer clicks on the link he will be directed to an official-looking Ã¢â‚¬â€œ but actually phony website that is simply phishing for the consumerÃ¢â‚¬â„¢s personal and sensitive information. Or, it might also happen that the link directs the consumer to a legitimate site but install spyware or some other form of malware on the way.
The don'ts: It is advisable not to give any kind of sensitive information over the phone or email. If you get a suspicious email, delete it immediately. Don't click on any links either, for they might take you to a phishing site or install spyware on your computer. Keep in mind that most of the government agencies don't collect information by phone or email.
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.