It is quite a shame to think that there would still be a lot of people out to scam others in just about any way that they can. Unfortunately, this is true in the case of interest rate reductions. With that said, it is always wise to keep yourself informed and up to date about these scams plaguing just about everyone – especially credit cardholders.
The latest scam to hit the market involves interest rate reductions. How does this scam work? A credit cardholder would receive a call from a live person – or this could be a prerecorded message – and that person would offer him or her lower interest rates for their credit card. During the negotiation, some scammers would even offer lower interest rates on all existing credit cards. Sounds too good to be true? Well, it actually IS.
If interest rates as high as 14% are breathing down your neck, then a scammer’s promise to decrease that rate to 5% or even 7% would sound heavenly, especially for cardholders who have large balances to begin with. What is more uncanny about this is that the scammers even explain to you how much money you can save in the long run – and they have explicit figures all outlined for you.
The main issue here is that they do not really do anything that you cannot do on your own. Yes, the things they offer to do for you are things you can actually do on your own. All they virtually do is make a conference call with your credit card company and you, of course, and then they ask for the reduction from your company. For that simple endeavor, they already charge you a fee ranging from $600 to as high as $1,500.
Another thing that they do – and this would even count as an add-on or service perk – is they set up another account with another credit card company. Once this new account is set up, they then assist you in transferring your balance to that new card. This is still something you can do on your own.
Much is at stake here because identity theft could also take place. The “agent” would ask for your credit card information over the phone, after all. This information could then be used to steal your identity, which makes the case all the more complicated.
So for your own protection, do take the initiative to look into whatever offers are being made to you, especially when it comes to credit card promotions. Interest rate reductions should never entail any payment. This is something you should always keep in mind.