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.
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