Debt Elimination

Credit Card Debt Elimination companies lure victims by promising to not just consolidate credit card debt but completely wipe them out. A promise that’s hard, if not impossible, to keep.

Many people out there feel the burden of credit card debt pressing down on them and are desperate to find a way out. Unfortunately there are a ton of scams waiting to take advantage of this desperation. Credit Card Debt Elimination companies lure victims by promising to not just consolidate credit card debt but completely wipe them out. That is, by the way, an amazing claim to make and many have found this to be an unfulfilled promise.

Credit Card Debt Elimination Scams

Lets take a look at one of their ads

Here’s an example of the extraordinary claims made by a debt elimination company:

“Eliminate Credit card debt totally — cancelled, terminated–legally. If you are heavily in DEBT to credit card companies, we can help you. Student loans or tax liens? Discharge these debts quickly, painlessly, legally and without damaging your credit report.”

How debt elimination scams work

First off there will be a hefty fee attached to this kind of service but what the heck, they will also claim you can put their fee on your credit card and they will eliminate that debt too! It sure sounds like a win-win for everyone so what’s the problem? Maybe it has to do with the fact that they can’t wipe out your debts at all. Here is another example from a credit card debt elimination service that explains why they should be able to free you from the burden of debt:

“Most people do not realize this, but the Federal Reserve also owns and controls the IRS. The Federal Reserve is a private corporation and IS NOT a part of the government. The Federal Reserve is no more “Federal” than Federal Express.”

I don’t see why this means you don’t have to pay your debts but it sure sounds good doesn’t it? If it’s not the Federal government then why should you care? What are they going to do to you? Will they lock you up? They don’t really say much about how this applies to your problem which is credit card debt. Here’s another good example of they tactics they use to try and swindle you:

“Banks rarely go to the trouble and expense of attempting to sue someone who has stopped paying on their credit cards, and that’s under normal circumstances! When they know you have evidence that they’ve violated federal law it’s very unlikely that they will file suit and risk loss of their banking charter.”

Does this sound true to you? It sure sounds good and if you are truly desperate you might fantasize that you just might be able to get away with this if you just hop on board this train. The bank may not go after you but they will surely turn your debt over to a debt collection agency and if you’ve ever dealt with one of those you know that they most certainly will try to collect the money you owe…plus interest.

You will also see Title 15 United States Code, Section 1692; the Fair Debt Collections Practices Act, Section 1601; the Fair Credit Billing Act; and the Uniform Commercial Code, Section 203 tossed at you. But the ads never say exactly what it is about those laws that make credit card debt illegal. Referencing laws makes a poor argument if there is no clear case made. These are classic fraud tactics. The people trying to sell you this scam figure that you are too lazy to investigate their claims. If you think about what they are trying to sell you and read between the lines you won’t even have to read up on all these laws and codes because they don’t even tell you how these laws apply to you. They could just as well have said that you don’t have to pay off your credit cards because even attempting to do so is futile due to the 2nd Law of Thermodynamics.

Be on the lookout for companies that promis to completely eliminate credit card debt or simply state that such debt is illegal in the first place.

Don’t answer unsolicited emails regarding your credit card debt

If you receive e-mail promoting a debt-elimination program — or if you have unknowingly been taken in by one of these schemes — you should contact the FTC at its Web site,, or call 1-877-FTCHELP. While the FTC can’t help you get your money back, the agency may use your information in its law-enforcement efforts against suspicious companies. We also recommend that you file a report with your local Better Business Bureau and your state’s Attorney General’s office.

More Information on Credit Card Fraud

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Peggy Jesshope
7 years ago

I am going through a program that claims to eliminate my debt they say it takes 6 to 12 months they already have all my information I usually give no information out it’s been about 8 months now and I am hoping there are companies that are on the up-and-up because my credit has dropped dramatically and at this time I’m very worried

Linda Briggs
6 years ago
Reply to  Peggy Jesshope

Seriously doubt it.