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2/10/2010

Lexington, KY - In this tough economy, many people are looking for ways to reduce their debt…There's one offer hitting area mailboxes that looks like it's from the government, seeming to offer to help…but it's not what it appears to be.

A central Kentucky consumer sent the mailing to your BBB. She thought it was from the government at first. We can see why….it says OFFICIAL BUSINESS in large letters and carries a Washington D.C. return address.

Upon opening it, you see "Consumer Debt Initiative." It informs the recipient that under this Initiative you may be eligible for as much as 40-thousand dollars in debt relief. The letter goes on to talk about calling immediately to speak to a professional debt arbitrator.

This sounded pretty official…So we checked further.

The BBB in Washington D.C. has a report on the company. Sure enough, that Bureau has given the company an “F” rating mainly due to unanswered complaints. That BBB says consumers have reported being solicited to pay a fee for this company’s debt settlement services, which required personal information to be given as well.

They also point out that the company is NOT affiliated with ANY government agency, which you find out by looking at the VERY fine print in the mailer.

Even though there have been some stimulus programs happening, and some new credit card regulations going into effect, none of this guarantees anyone reduced debt on credit cards and other accounts. There is no government money for that. If you need credit counseling, contact your BBB for help in finding a reputable agency so you don’t fall for it.

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Be a "Don’t Fall for It!" informant! If you have something to share you believe may be a fraudulent offer or scam, please let the BBB know! Call us at (859) 259-1008 or toll-free, 1-800-866-6668, or email us at info@lexbbb.com.