Duluth, GA, June 18, 2009 --(PR.com
)-- A recent survey shows the median amount of household credit card debt is $6,600 and the average debt load is almost $9,900. Further, of the 88 million credit card carrying households, 61% carry a balance from month to month.1
For clients who feel like they’re sinking under the weight of debt, looking into a debt or credit “help” firm may seem like a good idea. But some of these firms that promise to eliminate debt or repair credit may not be operating in compliance with the law, and doing business with them could have long term negative effects on the client’s credit report and ability to get credit.
Primerica, a financial services industry leader, urges clients to beware of six key “red flags” when researching a debt elimination or credit repair service.2
Red Flag #1: The company wants the consumer to pay for credit repair services before any such services are actually provided.
Red Flag #2: The client is not made aware of their rights and no information on what can be done for free is provided.
Red Flag #3: The firm recommends the client does not contact any of the three major credit reporting companies directly.
Red Flag #4: The client is told that the debt firm can get rid of most or all of the accurate negative information in their credit report.
Red Flag #5: The company suggests the client invents a “new” credit identity.
Red Flag #6: The client is advised to dispute all the information contained in their credit report regardless of its accuracy or timeliness.
For more information about debt payoff scams, contact the Federal Trade Commission at: 877 FTC HELP (877 382 4357) or visit www.ftc.gov. To learn about Primerica’s debt solutions, visit www.Primerica.com.
1Los Angeles Times, www.latimes.com, viewed June 8, 2009
2www.FTC.gov, viewed February 25, 2009
Primerica Financial Services, headquartered in Duluth, Georgia, is the largest financial services marketing organization in North America, with more than 100,000 licensed independent representatives. The company provides its 6 million clients with quality financial products and services, including term life insurance, mutual funds, variable annuities, loans, auto and homeowners insurance and long-term care insurance. Primerica conducts business in the US, Canada, and Puerto Rico; the company also operates in Spain as PriEuropa.
Additional information about Primerica is available on its web site: www.primerica.com.