| Posted at 03:51 PM on June 26, 2009 |
The White House reported in January 2009 that there was an increase in credit card debt by 25% over the last 10 years. The total credit card debt reported was USD$963 billion (as of January 2009). The existing credit card debt/household is approximately USD$9000. With the ongoing credit crunch, more and more people are finding it difficult to make ends meet. Reports suggest that people have become so desperate that they are willing to cut down their insurance coverage.
People are on a "pay-off debt" spree and it is not uncommon to see the debt help companies doing brisk business these days. Recession has not only given rise to the liquidity crunch but it has also given rise to the number of fraudulent market participants. However, not all debt relief companies are indulging in fraudulent activities. There are many credit card companies that are helping credit cardholders by reducing the rate of interest. And these companies are helping debtors legally.
Recently, it has come to the notice of many and the same has also been reported by the Better Business Bureau that there are many companies posing as credit card issuers and calling up credit cardholders requesting them to give their Social Security Numbers and other banking details. Two Orlando based companies have conducted robocalls and promised credit cardholders to save approximately USD$2000 to USD$2500. The claim made by these robocalls is usually false and they promise to lower interest rates by negotiating with your creditors. The Better Business Bureau has warned credit cardholders not to fall into their trap as they do not comply with U.S Do-Not-Call Laws.
An excerpt of a robocall is given below ?
"There are no problems currently with your account; however it is urgent that you contact us concerning your eligibility for lowering your interest rates to as little as 6.9 percent".
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