As a matter of fact, students in the United States have a collective loan debt of $1.5 trillion and with that the number of scammers is increasing. Recently the CFPB (Consumer Finance Protection Bureau) has taken the initiative to educate the masses by issuing warnings and has taken appropriate measures to shut down a few scamming companies too. Here is a list of top signs you need to notice in the company to know whether they are scammers.
Advertisements
The social media you use on a day to day basis uses “cookies” to provide you with best user experience. This includes monitoring your searches. So, while browsing or posting, avoids any advertisements from any companies claiming to offer student loan assistance especially if you do not recognize the company. Recently, Attorney Robyn Smith, who has contributed immensely to the 2013 Report, “Searching for relief: desperate borrowers and the growing student loan debt relief industry” stated that these kinds of advertisements can mislead you into paying for services which are free otherwise. Further, there is a new type of scam coming up these days- the advertisement will pose as a company but in reality, they will merely collect all your data through a questionnaire and sell it to scamming companies.
You can avoid such scams by using browser tools such as incognito mode so that no one can track your search information. Further, try to avoid filling out any kind of questionnaires online.
Unreasonable Pressure and Sensitive Data
Unreasonable pressure and the seeking of your sensitive data are the major red flags you need to take note of.
Usually, salespersons might ask you to sign the contract immediately claiming that offer is ending soon. If such pressure happens, contact the Department of Education to inquire if such company is affiliated with them. If the answer is positive, go ahead.
Your sensitive data includes your social security number, date of birth, address, phone number, email address, Federal Student Aid ID, etc. Never share such information with any company and never sign any document with respect to power of attorney. If you do so, you may lose access to your student loan account.
In case you have done the above-mentioned things accidentally, try to explain everything to your loan service provider. This will help in regaining the control of your account. Student loan debt relief scams can affect your time and mental peace. So, make sure to do your research with the help of your attorney to avoid the same.
If you are suspicious of a student loan debt relief company or you feel you were the victim of one, you need the help of a skilled, licensed attorney. Elias Dsouza of Dsouza Legal Group has the knowledge and experience to help you navigate this complex issue. Contact Elias and his team today for a free consultation.