National Credit Relief Agency Scam


When I picked up the mail this afternoon, there was an official looking letter addressed to my wife. Usually official looking letters are bearers of bad news, so I handed it to her as soon as I got home. Turns out this one was from an organization called the National Credit Relief Agency.

The letter was blatantly styled to look like a government form, complete with an eagle in the logo and references to the Accountability Responsibility and Disclosure act. NCRA does (at the bottom of the letter) mention that they are a private agency, but they've even gone to the trouble of setting up a DC address (despite mailing this out from California).

So what is the core of this scam?  They claim that they have reviewed your Experian credit file and that you may be "a victim of unauthorized interest rate adjustments and credit limit decreases". Now given how the credit card companies have been operating I'm going to bet that just about everyone has seen credit limit decreases and interest rate adjustments. The NCRA letter then goes on to say that theycan give you a settlement on your consumer debt for a reduced principal amount and a lower monthly payment at 0% interest.

Here's what you have to understand. The NCRA may be able to get you a settlement on a reduced principal and lower monthly payment. But if they do they will absolutely destroy your credit rating and it will take you years to recover from it.

Thats why the want to make it look like they're connected with a government program of some sort. Because the truth isn't nearly as appealing. If you received one of these letters in your mail, throw it straight in the bin and go to a reputable company to help sort out your debt.

Overly opinionated owner and author of You can get updated on his posts directly on the blog here or through the usual social networking suspects.

What? You expected me to say something interesting here? That's what the blog posts are for.

Eoghann has often wondered if people read these little bio things we have to fill out everywhere on the internet and, assuming they do, why?

Author: Eoghann Irving

Overly opinionated owner and author of You can get updated on his posts directly on the blog here or through the usual social networking suspects. What? You expected me to say something interesting here? That's what the blog posts are for. Eoghann has often wondered if people read these little bio things we have to fill out everywhere on the internet and, assuming they do, why?

30 thoughts on “National Credit Relief Agency Scam”

  1. Thanks. Received one of these today, and went to research a bit via web .. and you were the first hit. Confirmed what I imagined. Thanks :-)

  2. Glad you found it helpful. One of the reasons I posted was that I didn't see a lot of discussion of this particular scam online.

  3. I would also like to say "Thanks" for the insight. I igured this was a scam, but it was nice to have it verified.

  4. I got mine today and thought it was a scam. So much for the input. I know it didn't look right. Thats whats good about checking the internet. You can find the truth there most of the time.

  5. If any of my credit files are examined, I am notified immediately by email. I have Identity Theft protection through Pre-Paid Legal and my account is monitored by Kroll on a daily/weekly/monthly basis. The NCRA notice is a definite scam and I have submitted mine to the proper authourities and to be safe, notified Kroll. The Identity Theft protection costs me $11.95 per month.

  6. Thanks for the post. I received mine about a month ago and, interestingly enough, about 2 days before the expiration date. Also, this fell on a weekend, so it could lead one to act quickly without checking it out. Glad I sat on mine and then did the research. It follows the old adage, "If it looks too good to be true, it probably is."

  7. On the front of the mailing it reads: Warning: $2000 Fine, 5 Years Imprisonment... interfering or obstructing with delivery of this letter... Doesn't this apply to every piece of mail? Ohhh, I'm shaking now! With that kind of power they must mean business. If anybody interferes with their scam, FBI will arrive in blacked-out Tahoes and black suits and will be at the bad-guys front door. The eagle, the DC address; they should be fined and sent to prison! Just received my letter today and I knew immediately it was phoney, and a little reseach has confirmed that.

  8. November 01, 2010. Thanks for the scam warning. I have been receiving these type letters in various forms for the past month or so. They all lead to a expiration date in November. Today I got the letter that you described to a T in my mail box. I went to the BBB web site and they wanted an address, there's no address listed anywhere on the letter,just a 800 number, first red flag. The BBB didn't return any information just by the title of the company: National Credit Relief Agency. I then googled the title and found your letter. I was ready to call them and start the process until I found your letter. I will check out anything and everything from now on. You have done a good deed my friend.

  9. This company was started by people that were in the subprime lending industry then they moved to loan modificaitons and now have found a new way to take people's money to pay for their own over-indebted lifestyle. There are good debt counsiling services out there but steer clear of these guys.

  10. Thank you, Eoghann! Just got my little "present" in the mail, googled it, chose you. I see this originated (the article) earlier this year, hopefully it's gotten a l lot of hits and has helped many. I saw it a million miles away, straight from the mailbox to google I went! I think my husband has received these as well in more than one form, this one included. Idiots. Too bad some WILL fall for this. One of the things that gets the smoke coming out of my ears are scams on the elderly and otherwise disabled. Some of these people have no one to look after them. My son is 25 and lives in a group home. Just sorted out a few Ebay scams of his. He's so trusting. His mother is suspicious. Dhoffmannpga is right, I just wish everyone knew it. Thanks again.

  11. Always, always check, Jude. Is someone really going to help us with our debt for a fraction of the actual cost at no interest? Nuh uh they aren't! SO glad you googled!

  12. Hi Thatgirl- gotta love the search engines! And Eoghann! Yes, scaaaaary indeed hahaha! Yes, it is a federal violation to open mail addressed to others. I'm so glad my husband doesn't knark me out. heehee.

  13. Sounds to me like you're mostly upset with a good marketing style... I mean it did get you to call... didn't it Mr. Eoghann. The firm, NCRA, is simply a middle man and in no way has any of your credit information. I'm not sure if you know this or not but pulling/reviewing someones credit without their consent is against the law. NCRA is a marketing company not a law firm and does not handle your "settlement" case. Please get the correct facts before you begin blog bashing any company. I pitty the fools who follow the advice of one man just because the program wasn't right for him. World Law Direct has a B rating with the BBB if you would like to check...

  14. No, it didn't get me to call. The fact that it's not legal to pull or review someone's credit information and yet they claim to have done so just goes to show how dubious that company is. I already have my facts right. You on the other hand are clearly on someone's payroll.

  15. Thanks for the info. I was looking into this and read your note. Very similar to mine. I get so any of these I never know what is real and what is fake. When I know it is real it usually is discussed in the news and in the papers , but the inforamtion to apply for aide is usually never mentioned. I guess the saying 'too good to be true' is really true.

  16. Got mine today. Looked VERY much like some official form or tax document. I kinda freaked when I first saw the front of the letter. When I opened it and it started mentioning my consumer credit debt, I knew this was a scam because I have no credit card debt. Just to be sure, I googled the NCRA and your blog was the first hit. Thanks for the insight and the heads-up. Mine is now in "file 13"...the TRASH!

  17. I have got the NCRA letter several times and others like it over the past year, i aways do the same thing with them right in the trash.

    Any company that deals with money and cant be found on the net is not a valid company...........
    most money is moved through the net and if you can find the local supermarket on the net you should be able to find a money or debt or agency on the net, if you cant than they are none of the above.

  18. So if you didn't call how do you think you are educated enough on the process and what they are offering to be soliciting advice on the subject? You somehow think you understand what the company does by reading a very limited amount of information mailed by an independent 3rd party. If you're mad at piece of aggressive marketing then you should also be bashing many other companies for their marketing styles. Now it's correct that anyone can negotiate their own settlement and yes it will affect their credit score but the people who need help either don't know how, don't have the patients or the skills to negotiate their own terms. In 90% of the cases these people haven't made a monthly payment in 3 months. Would you agree that once your debts are paid off your credit score will begin to rise again? Would you agree that changing someone’s APR from 9% to 29% is a little outrageous? Would you agree that if you were given a 29% APR to begin with you never would have signed that agreement? Would you agree that paying $4 for every $1 you spend is absurd? Well that’s exactly what’s going on and the lawyers at World Law are only trying to help you pay for what you borrowed NOT a ridiculous amount of interest. If you are upset at the debt settlement industry you should be bashing the lawyers who handle the cases but instead you're bashing marketing firm and tarnishing their name for send out a piece of mail, and a perfectly leagal piece of mail at that. You assumed, and are leading others to believe, that your credit has been run and that’s how your information was obtained. You would be amazed at the amount of personal information that is obtainable to the public. I’m more upset at the people who go and run up $80k in credit card debt then file for BK, what makes you think you can borrow money and not return it? Especially when you knew you didn’t have the money to pay it back in the first place??? Same goes with all the people who went and bought a home on a Neg Am loan for $500k when they could barely afford one for $200k, but I guess it's always someone elses fault and never the person in the mirror. I understand not everyone is in this position and I commend you (& others) Mr. Eoghann if you aren’t one of these people and if at the end of every month you have more than $30 in your bank account but unfortunately there are many people who have put themselves in a terrible situation and have no idea how to get out of it. Yes it costs money to hire a lawyer... of course I’m on someone’s’ payroll, I don't know if you work for free but I sure as hell don't... but I also don’t rape people with fees…
    Thank you!

  19. I don't think you looked very hard... If you searched National Credit Relief Agency (the name at the bottom of your letter) It's #2 on yahoo's search engine and #3 on googles... wow... now that was tough to find...

  20. So I have a question for you Mr.Eoghann, how did you make this out to be a scam if you never went through there program or even made a call,also would like to know why they are still in business if it is a scam, how come the FBI has not shut them down if it is what you say it is???
    none of what you are saying makes any sense, why would the presednent make a speech on this program, or was he part of the scam or was he an actor. the link that was on the letter is what im talking about , could you help me understand?
    I am at my end wits trying to keep the credit cards up to keep my score in the 700s for years, but when the economy went south and I had to take a pay cut, it made it hard to keep up, now it looks like i have to do a BK and really ruin my credit.. im really confused now.....

  21. Mine came via my mother's house - she was so scared of the warning on the front, she mailed it to me in the UK! Craziness!

  22. As a loan underwriter for an averaged sized bank, I have seen 1st hand what a company like this will do to your credit. In my opinion it's just as bad or worse than a bankruptcy. What I saw was terrible - it actually did look worse than a bankruptcy. They "take" over your credit cards and simply don't pay them until the credit company is willing to do a settlement for a lesser amount than the balance (which in itself shows as a negative on your credit report because it is reported as a settlement). You send your money each month to them and then they distribute it. You could do all this by yourself if this is the route you want to take. Miss a couple of payments and call up the credit cards and try to start negotiating a settlement. You can avoid hefty fees from the companies like NCRA.

  23. Thank you! Just got same type of official letter document in mail on March 24, 2011. Couldn't find it listed with Better Business Bureau. So then typed in company name and found your helpful input about the scam.

  24. Every single one of you nitwits claiming that it's a scam or too good to be true are part of the problem. You people want to run your debt up to the tens or hundreds of thousands and then act offended when it comes time to repay. Yeah, these companies are not exactly what capitalism was meant to represent, but then again, credit was never intended to be over extended. One of the comments states "you can do it yourself". What you are saying to people who have already managed to get themselves into a financial hole and borrow way beyond their means is to save thousands of dollars and then call their creditors to negotiate their debt. You are exactly the reason that will never work because you believe it is an option. Get real people. If you can't manage to make the payments, you are not going to manage to save thousands in order to pay it off in full. You are all gluttons and have zero financial acumen. If you are a mechanic, or an admin, or whatever else you do to make your living, do not act like you can take on negotiations with a big bank and get the result you are seeking. The fee you pays these people is for their time just like you pay your mechanic for his time to change your brakes. Can you do it? Yes. But why do you pay someone else? To make sure it's done properly.

  25. Are you aware Eoghann that they don't NEED to "pull" your credit to "review" your information? Do you understand how it works? If so, please explain how they managed to get your information.

  26. Did you actually read what I wrote? The scam is that they claim to have reviewed my Experian file and that I'm a "victim of unauthorized interest rate adjustments." It has nothing at all with their ability to find my name and address on a mailing list somewhere.

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