The Federal Trade Commission (FTC) has recently alleged that several debt-management firms, including JPM Accelerated Services and its affiliates, ran a credit card debt relief scam through telemarketing operations.
These companies allegedly made thousands of robo-calls, some in violation of the Do Not Call registry, according to Consumer Reports. When a consumer with a bad credit history or high debts pressed "1" during such a call, he would be redirected to a live telemarketer, who would promise to lower his interest rates for fees ranging from about $500 to $1,000. The company allegedly never delivered on this promise and did not honor its money back guarantee.
At the request of the FTC, the U.S. District Court for Middle District of Florida Orlando Division has barred the companies from making any further calls.
Consumers who have bad credit history may want to steer clear of offers that sound too good to be true, and may want to avoid paying for anything up-front without a clear understanding of what services will be rendered in exchange. While struggling consumers work to build up strong credit, they can obtain a bad credit loan to finance necessary expenses.