| Bill consolidation fraud represents several scams | | | | of bill consolidation fraud include phone solicitations, print |
| involved in the bill consolidation process. Bill consolidation | | | | fraud, and online fraud. In the case of phone |
| is a strategy applied by borrowers to repay | | | | solicitations, scammers contact borrowers and ask for |
| outstanding balances. It combines all the existing loans | | | | account-related and personal information. Print fraud |
| of a borrower into one single loan, thereby making | | | | utilizes local newspapers and magazines to publish |
| repayment convenient. But bill consolidation fraud may | | | | fake advertisements, coming up with special rates and |
| sometimes make the financial situation of a borrower | | | | offers for bill consolidation. Online fraud occurs in the |
| worse than ever. | | | | form of fraudulent e-mail. Sometimes, scammers use |
| One of the most common examples of bill | | | | logos and images of legitimate companies to get |
| consolidation fraud is a debt consolidation company | | | | information about the borrower's account. |
| that pretends to be nonprofit. Such companies promise | | | | The primary step in avoiding bill consolidation fraud is |
| to clear a borrower's debts for a nominal charge and | | | | the selection of a reputable bill consolidation service |
| then later charge a sizable fee. It is, therefore, | | | | provider. Proper research should be undertaken |
| advisable not to sign any contract with such firms. | | | | regarding such matters; useful information includes the |
| Sometimes, a borrower's equity is stolen through bill | | | | duration a particular firm has been in business, the |
| consolidation fraud. In this case, a lender or a mortgage | | | | strategy it applies to clear debts, and probable |
| agent contacts the borrower and promises to combine | | | | complaints against the company filed with the Better |
| all his debts into a single repayable loan. Later, in order | | | | Business Bureau (BBB) or the State Attorney |
| to yield huge profits, he compels the person to borrow | | | | General's office. |
| further. This may sometimes pave the way for a loss | | | | Organizations such as the American Association of |
| of property on the part of the borrower. | | | | Debt Management Organizations, the Consumer |
| Another example of bill consolidation fraud is a firm | | | | Federation of America, the International Organization |
| that promises free debt consolidation that is not | | | | for Standardization, and the National Consumer Law |
| actually free. Bill consolidation fraud also appears | | | | Center (NCLC) also help borrowers avoid bill |
| through a plethora of media sources. Other methods | | | | consolidation fraud. |