    
Christine
Board Administrator
Username: Christine
Post Number: 1554
Registered: 09-2002
| | Posted on Tuesday, October 28, 2003 - 05:58 pm: | 
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I got this VM today:
Hi, this is Doug Thompson calling with DRF.
You may recall receiving their a letter stating that you've been approved to consolidate your credit cards to as low as 1.5% interest. This is not a new loan and again, you've already been approved by a certified non profit agency with absolute no upfront money or enrollment fees.
In order to lower your rates before your next billing cycle, I do need to find out what your current balances are, so if you please have your statements ready when you call, my number here is 1-800-890-3588 and again my name is Doug Thompson, and you can reach me until 10 PM today. Thanks, and have a great day! Bye.
I called and spoke to Kevin.
He asked whether I had a lot of credit card debt with high rates. I wondered why he wouldn't know that since I'm already approved. He then asked again whether I had credit card debts, and if this was something I was interested in.
I asked why he wouldn't answer my questions, and he responded that he didn't think I was interested in the program, he immediately offered to put me on their do-not-call list. I told him that I was already on the do-not-call list, and he informed me that I'm not on THEIR list because they are a non profit organization.
I asked what the purpose of their organization is, and he told me that their purpose is to help me pay off my credit cards and get me out of credit card debt.
I asked how that works, he told me by lowering my interest rates. I replied that I don't understand why my creditors would lower the interest rate. He asked again whether I had any credit card debt and I confirmed that.
Kevin explained that they prenegotiated with the major creditors so that more of my money goes to principle instead of interest. I told him that I didn't understand how they negotiate my rates, he responded that the rates are already negotiated.
They are presenting this program to people who desire to pay off their credit cards and get out of credit card debt.
If I had any late payments and I'm getting calls from creditors, he can help me with that. They can get rid of late and over limit fees and help me get my cards get paid off.
I told him that I don't have any late payments, and he offered again to take my number off their list.
I asked whether their program is only for people with late payments, and he replied "no, no, no, that's just one of the things I said ..." He reiterated again that their program was for anyone desiring to get out of credit card debt.
I asked for their web site, and he gave me the http://drfoundation.org/
I asked why the creditors won't lower the rates when I call them, and he explained that it's better for the creditor to get some money than nothing. He finally said that their program was mostly for people about to file for bankruptcy. But then he again stated that it was for anyone desiring to pay off their credit cards.
I asked about the "adverse consequences."
"The adverse consequences ... well, the cards you put in the program you won't be able to use, first of all, secondly, you shouldn't apply for new credit for at least 6 to 12 months, that's really about it."
I told him I'd look at the web site and I ended the 4.5 minute call.
I remember getting these calls from Lighthouse/Debt Relief before, and probably have some other recordings, I think I've even talked to Kevin, before.
They are probably the same outfit that's been hardselling my neighbor on this.
Of course he didn't mention at all the destructive impact on the credit.
The Thompson VM contains false and deceptive claims:
I am NOT approved for anything.
I did NOT get any letter.
From their FAQ at http://drfoundation.org/faq.htm
"Q: How will debt management affect my credit?
A: Our agency does not report to any Credit Bureaus. If you are current with all your bills and as long as you make your monthly payment on time, then the payments to your creditors are considered on time. On the other hand, if you are over extended and have a poor debt to income ratio, paying off your debts quickly will improve your credit worthiness. If you are behind with your bills, by making timely payments to your creditors, you will improve your payment record as well as your debt to income ratio. This will result in a much improved credit score."
This is of course totally false.
Because the accounts are CLOSED, the consumer will PERMANENTLY and in the LONG TERM (i.e. forever) lower their credit scores.
There's NO way to get that account history back. Additionally, paid closed accounts are no longer included in the balance/limit ratio, most likely dramatically LOWERING your credit scores.
If ALL revolving accounts are closed, credit scores will be substantially lowered just for that reason.
And, the debt to income ratio referred to is not part of any *credit* score because the income is not part of the credit report.
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10/28/03 VM by Doug Thompson