No, Snoop Dogg Can’t Pay Off Credit Card Debt
While browsing your Facebook feed, you may have seen videos of Snoop Dogg promoting a debt relief program from the so-called Debt Council.
“If you owe $ 10,000 on your credit card, look. You can qualify for the program and get thousands of dollars back with a 15-minute phone call, ”he said in one of the videos quoted by Vice News. The Debt Council claimed it could write off debts through a loophole in the government and paid $ 274,000 for Facebook and Instagram ad campaigns, the Vice News investigation explained . But there is no such loophole in the government.
In fact, the Debt Council is a referral company that claims to match consumers with other debt relief firms. But referral services often sell your contact information, which can then be used for direct marketing or to ensure that you receive even more similar ads through social media platforms.
According to Vice, rapper Jermaine Dupree also provided video testimonials for the Debt Council. It looks like artists were able to create videos using Cameo, a service that allows fans to pay for personalized messages from celebrities.
When Vice News warned Facebook about the ads, Facebook flagged them for violating its policies on deceptive or misleading business practices and its rules that prohibit the use of images of public figures to induce people to engage in fraudulent practices.
Worried that you might be lured by a cunning social media scam offering debt relief? Look for these signs of trouble:
Promise fast results
“If the ad promises quick relief, it’s most likely a scam,” said Courtney Nagle, junior marketing manager at the National Fund for Credit Counseling (NFCC) . “If a consumer sees an ad like this and considers it a scam, they should report it,” through the social media platform, she said.
They claim government ties
Lawyer Steve Weissman, who blogs at Scamicide , agreed that over-promises are a big red flag. Another claims to be associated with the government. “The government does not give authority to any particular person regarding debt cancellation [forward],” he explained. “You have to be careful with the names because they might appear to indicate that they are related to the government.” He mentioned Freedom Debt Relief, which sounds very patriotic but recently reached a $ 25 million settlement with the Consumer Financial Protection Bureau (CFPB) for misleading customers.
But the biggest red flag, he says, is when a company wants money in advance to help you with your debt. It’s illegal.
Instead, look for a certified credit counselor.
If you are feeling overwhelmed by debt, do not seek relief. Instead, seek credit advice from a certified non-profit organization. Nagle said all nonprofit member agencies are accredited by the Accreditation Board . The NFCC offers free referral services to local non-profit member agencies.
You can also check CFPB; its consumer complaints database allows you to search for a company by name to see any complaints about it.
Melinda Opperman, president and chief relations officer for the nonprofit credit counseling agency Credit.org , recommended checking the company information on the Better Business Bureau’s website. “No agency with thousands of clients will be completely free of complaints,” she warned, but credit and debt counseling organizations should have a good track record with the Better Business Bureau.
Last place to check for intruders: The FTC maintains a permanent list of people and companies that have been banned from providing debt relief services.