Credit Scams and Schemes
Product Misrepresentation: Gems, Real Estate, Cars
Identity Theft: Scam artists get your
name and ss# or other piece of personal information and use it to open new credit card accounts.
Fraudulent company offers personal debt consolidation loan, collects an up front fee and never provides the loan
Credit Repair Scheme
Fraudulent company offers to erase a bad credit history or remove bankruptcy info from credit
records. It collects an up front fee.
Financial Aid Scam
Fraudulent company offers to find student scholarships.
It collects an up front fee and fails to provide scholarships
Fraudulent company which the first participants receive payment for recruiting additional members
Legal loan that allows a person to get cash until payday with no credit background check. The APR is extremely high.
Rent to Own
Legal scheme offered by some businesses where consumer pays a lot more money for appliances, furniture, and electronics
because of first renting the item and then buying it.
Ways to avoid getting caught in scams and schemes
1. Keep your
greed in check
2. Buyer Beware
3. Be careful
4. If sounds
too good to be true it usually is, ask questions
5. Hang up
on telemarketers offering chance of lifetime
6. Walk away
from salesperson on campus offering free trips to Cancun in exchange for your credit card or debit number
7. Live within
or below your meansShred documents that have personal information