Debt Elimination Scams
Debt elimination schemes generally involve websites advertising a legal way to dispose
of mortgage loans and credit card debts. Most often, all that is required of the
participant is to send $1,500 to $2,000 to the subject, along with all the particulars
of the participant's loan information and a special power of attorney, authorizing
the subject to enter into transactions regarding the title of the participant's
homes on their behalf.
The subject then issues bonds and promissory notes to the lenders that purport to
legally satisfy the debts of the participant. In the exchange, the participant is
then required to pay a certain percentage of the value of the satisfied debts to
the subject. The potential risk of identity theft related crimes associated with
the debt elimination scheme is extremely high because the participants provide all
of their personal information to the subject.
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