Some debt relief companies are using deceptive advertising…
Maybe you’ve seen the advertisements on TV, heard them on the radio or seen the ads running on Google for the Obama credit card debt relief program? With millions of Americans struggling to make ends meet and pay their bills, high interest rates on credit card debt can be a heavy burden. One of the solutions that many people look to for help is from a debt relief program. But to make the process of choosing a reputable company more difficult, some companies are using deceptive advertising.
With the media focused on the federal government’s attempts to make things easier for Americans, Obama’s name is attached to legitimate legislation like the CARD Act of 2009 and other programs and services. But there is no such thing as Obama credit card debt relief or an Obama credit card bailout program. These are just a few of the names used to convince consumers that their program is supported by the federal government, marketing tactics that may appear to be a free program. The pitch is to consumers with more than ten thousand dollars in credit card debt to wipe out a significant portion of their credit card debt. This is simply not the case and not a part of the economic stimulus package nor of the CARD Act – there is NO Obama credit card debt relief program.
In response, the Federal Trade Commission is writing regulations that will force these companies to stop marketing their services with a claim of approval by the U.S. government or President Obama. If they do not cease and desist in their deceptive practices, the FTC will have the authority to reprimand and punish.
On a similar note, debt relief companies are no longer allowed to charge upfront fees. Many of these companies have come to depend on these fees and will now have to come up with other ways to make a profit. A service must be provided before a fee can be charged.
The only way to truly repair debt is to pay down the debt over time. If you are interested in checking out a debt relief program, visit NFCC.org to find a non-profit company.
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