• Skip to primary navigation
  • Skip to main content
  • 800-939-8357
  • Contact Us
  • Get Debt Help
  • Debt Settlement
  • Credit Counseling
  • Bankruptcy
  • Credit Reports
  • Student Loans
  • Blog
  • Videos
  • Contact Us
  • About
  • More
    • Settlement FAQ
    • Debt Questions
    • Media Inquiries
    • Expert Help
You are here: Home / consumer rights / Credit Card Interest Rate Reduction Robo Calls a Scam

Credit Card Interest Rate Reduction Robo Calls a Scam

August 8, 2017 by Michael Bovee Leave a Comment

The FTC announced this week that it had filed lawsuits against three companies: Economic Relief Technologies LLC, Dynamic Financial Group (U.S.A.) Inc., and JPM Accelerated Services, https://www.ftc.gov/opa/2009/12/robocall.shtm. The lawsuits, which were filed in Florida, Georgia and Illinois, allege that the companies have been marketing worthless credit card interest rate reduction programs to consumers via automated phone calls, also known as ‘robo” calls. According to the FTC, not only have the companies failed to deliver on their promises, but their calls have violated the federal Telemarketing the Do Not Call Rules.

Telemarketers working for the three companies told consumers who were interested in the program that the program would allow them to save thousands of dollars in interest within a short period of time and would make it possible for them to pay off their debts faster. Consumers were also told that to achieve these benefits they would have to pay as much as $1,495 up-front, but were promised that if they did not save a “guaranteed” amount — usually $2,500 — they could get their up-front payment back. Few consumers ever received a refund however.

Consumers who want to learn more about their rights and responsibilities regarding pre-recorded telemarketing calls, should read the following two FTC alerts: New Rules for Robocalls and Reining in Robocalls, which can be found at https://ftc.gov/bcp/edu/pubs/consumer/alerts/alt162.shtm.

Getting your interest rates lowered yourself.

Consumers should know that they have just as much likelihood (if not more) of successfully reducing their interest rates with their creditors on their own, rather than by paying someone to attempt to do it for them. If you try it on your own and you hit a brick wall, do not get discouraged. Try again a week or so later and you may have success.

One little tip for those consumers whose high interest rate credit cards may force them to make a payment late: Missing a payment by as a little as a week or two will often give your account a different status that will qualify you for interest rate and minimum payment reductions that were unavailable to you prior to your late payment.

I should stress that this strategy for getting such reductions is only appropriate for someone who was already unlikely to be able to meet the minimum payment requirement. I have seen instances where calling in to ask for your interest rate to be lowered can end with a no, and a closed account, or lowered credit limit.

Anyone with questions about phone calls or solicitations that offer you credit card interest rate reduction, or any other form of debt relief, can post in the comments below for feedback.

Filed Under: consumer rights

Schedule Call

With Michael
Schedule

Ask Michael

Your Questions
Ask Now!

Estimate Your

Debt Settlement
Estimate

About Michael Bovee

Michael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry, and is a regular contributor to several personal finance websites.

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

© Copyright 2023 Consumer Recovery Network 217 Cedar Street - Sandpoint, ID 83864 · All Rights Reserved - Site Terms  Privacy