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These questions will help you to review a debt consolidation agency or debt consolidation loan, the services they offer, and the terms of the agreement to which you're entering. Be sure to consider several companies before choosing to do business with any organization.
Questions to Ask:
--Did the seller, ad or telemarketer guarantee your ability to receive a loan or line of credit? Do they require advanced payment? Be suspicious. Legitimate lenders will not "guarantee" that you will get a loan or a credit card before you apply, especially if you have bad credit, or a bankruptcy.
--Did a telemarketer selling this service request a credit card account number, bank account information, or your Social Security number from you over the telephone? This is a red flag! Never give out this information unless you are familiar with the company and know why the information is necessary.
--Did you find advertisements for this service or company in the classified ad section of a newspaper or magazine, or in mailings, radio spots, or on local cable stations? Beware of these companies - they often represent scams, or require you to call expensive "900" numbers to learn about their service.
--Does the company use delivery systems other than the U.S. Postal Services, such as overnight or courier services? This may be an attempt to avoid detection and prosecution by postal authorities.
--Is there an advanced-fee or application fee required, but no supposed "guarantee" of receiving a loan or line of credit? It is an accepted and common practice for reputable lenders to require payment for a credit report or appraisal. You also may have to pay a processing or application fee.
--Does the offer of credit require your verbal or written acceptance of the loan or credit offer? Is the application subject to a check of your credit report to make sure you meet their credit standards? Is the application fee minimal? These are generally good signs of a legitimate loan or extension of credit.
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