San Diego, CA - Debt elimination
scams have been advertised on web sites like
TerminateDebt.cc, and TAFinancial.net for years. The debt
elimination scams that were found on these sites provided
debt-plagued consumers with a number of bogus tactics they
supposedly could take to get out of paying debts.
These schemes are proliferating on the Internet, and the
organizers are charging borrowers substantial up-front
fees and commissions based on the total amount of debt
that can be forgiven.
The Federal Reserve Bank warns consumers of various
illegal schemes that purport to eliminate outstanding debt
through the use of specially prepared documents. The
organizers of these schemes concoct specious legal
documents based on the borrower's debt, which are then
presented to the borrower's bank, mortgage company,
finance company, or other lending institution in an
attempt to satisfy the debt.
The purported legal documents used in the current scams
include fake financial instruments that claim to eliminate
the borrower's debt obligation. Regulators warn consumers
to be advised that worthless instruments entitled 'Bond
for Discharge of Debt', 'Bill of Exchange,' 'Due Bill,'
'Redemption Certificate,' or other similarly titled
documents, regardless of how such instruments or documents
are titled or whether they appear authentic, they are
worthless, have no legal validity, and are not payable
through the United States Treasury, the Secretary of the
Treasury, the Comptroller of the Currency, or any other
federal or state agency.
Many of these schemes are premised on baseless or
fraudulent claims against the United States Treasury. The
instruments usually question the authenticity of financial
obligations, and often refer to a specific government
agency (such as the Federal Reserve) in an attempt to
support their claims and some specifically refer to the
elimination of debt through the use of a "Federal Reserve
Debt elimination programs that claim Federal Reserve
approval or acquiescence and the satisfaction of
legitimate debts through the presentation of suspicious
documents are totally BOGUS. The Federal Reserve does not
approve and is in no way involved in any program aimed at
eliminating anyone's debt obligations.
Borrowers who fall for these types of scams generally pay
significant amounts of money without eliminating or
reducing their overall indebtedness. Also, the Cessation
of legitimate loan payments increases the risk of a
foreclosure or other legal action that could be taken
against the borrower, and it could also negatively affect
the borrower's credit rating and score.
If you have a debt: 1.) pay it; 2.) negotiate it; 3.) or
declare it in a bankruptcy. Importantly, avoid the ruse
that somehow the debt is illegal because someone, for a
fee promises to offer up some legal looking forms and
documents. The FBI says. "...The perpetrators of these
schemes offer to take advantage of 'loopholes in the
system' that will eliminate your entire mortgage or other
debts for an up-front fee. Don't believe it. There are no
Should you come across debt elimination scams on the
Internet or elsewhere, please consider reporting the
details to the FBI by calling the regional office listed
in your phone book.
About the ICFE:
The Institute of Consumer Financial Education (ICFE) was founded in 1982 by the late Loren Dunton (creator of the Certified Financial Planner (CFP) designation). The ICFE is dedicated to helping consumers of all ages to improve their spending, increase savings and use credit more wisely.
The ICFE is an award winning, nonprofit, consumer education organization that has helped millions of people through its education programs and Resources. It publishes the Do-It-Yourself Credit File correction Guide, which is updated annually. The ICFE has distributed over one million Credit/Debit Card Warning Labels and Credit/Debit Card Sleeves world wide.
The ICFE became an official partner with the Department of Defense/Financial Readiness Campaign in June of 2004.The ICFE was an active partner in the California Student Debt Resource Awareness Project (CASDRAP) which resulted in a new web site: (studentdebthelp.org). CASDRAP disbanded in 2010, shortly after the web site project was completed. In 2011 the ICFE assumed the single sponsorship of the (studentdebthelp.org) web site and is now responsible for its content and operation.
The ICFE is also an on-line help for consumers who spend too much. ICFE's spending help was featured in PARADE Magazine in the Intelligence Report section. The money helps and tips are from the ICFE's Money Instruction Book, our course in personal finance.
Visit the ICFE's other web sites at: www.financial-education-icfe.org and studentdebthelp.org. Both sites helps consumers and students with mending spending, learning about the proper use of credit, budget and expense guidelines, how to set up and implement a spending-plan and also how to access financial education courses and how to teach children about money. Other ICFE services include: Ask Mr. G, a free eNews, and an online resource center for students, parents and educators, plus financial education learning tools and a book store.