Recent Debt Elimination Scams

I notice from listening to the news and seeing advertisements in newspapers that debt elimination/consolidation is a topic on everyone's mind due to the state of the economy. Having worked in telemarketing rooms in the past, I learned that there are reputable telemarketing organizations, but there are also numerous "boiler rooms" that promote and operate fraudulent programs, similar to the description below.

Debt elimination schemes generally involve websites advertising a legal way to dispose of mortgage loans and credit card debts. Most often, all that is required of the participant is to send $1,500 to $2,000 to the subject, along with all the particulars of the participant's loan information and a special power of attorney authorizing the subject to enter into transactions regarding the title of the participant's homes on their behalf. The subject then issues bonds and promissory notes to the lenders that purport to legally satisfy the debts of the participant. In exchange, the participant is then required to pay a certain percentage of the value of the satisfied debts to the subject. The potential risk of identity theft related crimes associated with the debt elimination scheme is extremely high because the participants provide all of their personal information to the subject.

If you feel that you've been victimized, or know of someone who has been a victim of this type of fraudulent operation, please don't hesitate, follow your instincts and please file a complaint on IC3.gov.