This scam is usually by phone – you may get a call from a person but quite often it’s from a robo caller i.e. a computer randomly dialling numbers and playing a recorded message asking you to call them.

This is a well organised and determined scam operation by criminals – do not be taken in by anything they claim.

The caller or robo caller message claims to be able to reduce your credit card debt payments as they can negotiate lower interest rates with your credit company.

There is no truth to this.

The scammers want you to pay them in advance then typically disappear without making any attempt on your behalf.

The companies behind the sales pitches claim to have special relationships with credit card issuers. They guarantee that the reduced rates they offer will save you thousands of dollars in interest and finance charges, and will allow you to pay off your credit card debt three to five times faster. They claim that the lower interest rates are available for a limited time and that you need to act now. Some even use money-back guarantees as further enticement.

The Federal Trade Commission (FTC) says that the companies behind these robocalls can’t do anything for you that you can’t do for yourself — for free. You have just as much clout with your credit card issuer as these companies. Indeed, FTC investigators found that people who pay for these services don’t get the touted interest rate reductions, don’t save the promised amounts, don’t pay off their credit card debt three to five times faster, and struggle to get refunds.

The FTC says that if you’re looking to reduce the interest rate you’re paying on your credit card purchases, your best bet is to handle it yourself for free: call the customer service phone number on the back of your credit card and ask for a reduced rate. Be calm, patient and persistent and you might be rewarded.

If you have any experiences with these scams do let me know, by email.