As more Americans look to lower their credit cards’ interest rates and fees, scam artists are banking off of the opportunity to grant the wishes of hopeful cardholders. Ohio Attorney General Richard Cordray warned consumers this week that the number of telemarketing schemes, promising to reduce rates and fees, is growing rapidly.
Many of the consumers called by these telemarketers are on “do not call” lists, according to MSNBC. The companies aggressively push call recipients into registering for programs that offer rate reductions. Analysts say it is unclear whether the telemarketers’ intentions are to take the money without providing actual service or fulfill their promises on behalf of the customers.
“These companies are collecting fees for a service that consumers do not need,” Cordray told MSNBC. “They are not offering anything that consumers cannot do on their own. While the solicitations may be touting ‘guarantees’ and ‘exclusive offers,’ the companies have no more clout with creditors than consumers do.”
The average interest rate for credit cards rose to 14.7 percent since the Credit Card Accountability, Responsibility and Disclosure Act went into effect in August. More consumers appear determined to lower their rates and fees to reduce overall debt.