Most Popular Scams at the Momentby Tim Manni
Yesterday, Clark Howard listed several scams consumers should be particularly aware of at the moment. It should come as no surprise that economic downturns provide scammers with new and ample opportunities to take advantage of consumers trying to turn their luck around:
Foreclosure scams: A relatively new scheme, foreclosure scams originated as a result of the housing crisis. Beware of bogus agencies that promise they can keep you in your home.
We warned readers back in June of the different forms of foreclosures scams. “For anywhere from $1,000 to $2,500 upfront, mortgage-rescue companies offer to renegotiate the terms of your home loan to lower your monthly payments…Scammers sift through public records seeking those in danger of foreclosures, and bombard them with phone calls and official-looking mail.”
Credit-clean-up scams: “This old standard has been particularly hot since September. You’ve seen the offers from companies that promise to remove debts from your record for an upfront fee. Know that the money would be better used to pay your debt down,” warns Howard.
Get-rich-quick scams: Con artists will always pry on the American desire to get rich quick. “There’s a natural human tendency to look for easy, instant answers during desperate times,” says Howard. “You got into debt step-by-step and that’s exactly how you need to get out of it.”
Click here to read Clark Howard’s entire list of hot scams at the moment.