Don't Pay for Interest Rate Reductions! - By: John Rasor

With consumers in turmoil over rising credit card interest rates, an old scam is gaining new momentum... so don't get suckered in!

In this scam, either a live person or a pre-recorded message from Easy Financial (or some other business) will call and offer to negotiate a lower interest rate on one or more of your credit cards.

If you're paying 12 to 14%, their promises of 5 to 7% will sound good, especially if you have a large balance. They'll explain how many dollars you'll be saving over time when you let them do the negotiating for you.

The problem is, they won't do anything you can't do yourself, and they'll charge you plenty for it. Fees are reportedly anywhere from $600 to $1,500 - for making a telephone call you can make yourself. They'll set up a conference call with you and your credit card issuer, and merely ask for the reduction - just the same as you could.

In some cases, they'll set up an account with a different card issuer and help you transfer your balance.

According to reports, they charge a high up-front fee - charged immediately to your credit card - and say you can cancel the service and get a refund if you're not happy. Unfortunately, according to reports to the Better Business Bureau, refunds have not been forthcoming.

Right now, the primary player in this scam is Easy Financial - but since this is a lucrative business in an economy where consumers are struggling to keep their heads above water, we can expect others to join in.

A second danger from these calls is identity theft. The caller will ask for your credit card information - something you should never give out over the phone unless you are the person who initiated the call.

This company - or these companies - are probably in violation of Section 5 of the Federal Trade Commission Act, which prohibits unfair and deceptive practices. They may also be in violation of the Telemarketing Sales Rule and the National Do Not Call list.

If you've already been scammed, the first thing to do is contact your credit card issuer and dispute the transaction. Then follow up with a written complaint. Under the Fair Credit Billing Act, you do have a right to dispute charges for services not rendered, and most credit card issuers are good about removing such charges.

If you don't already have identity theft protection get it now because you never know whats on your credit report until you need money.

About the Author

http://www.creditscorecowboy.com is the #1 source on the planet for a free credit report, identity theft software and a blog with a wealth of information writtten by lending professionals that know about credit and what determines ones creditworthiness.

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