Omaha Consumer Deceived by Offer to Lower Credit Card Interest
Better Business Bureau serving Nebraska, South Dakota and southwest Iowa is issuing a national alert about Consumer Financial Advisory Board, LLC (CFAB) located in Clearwater, Florida. Representatives from this company are calling consumers across the country claiming that CFAB can save them money on the interest they pay on their credit cards.
A consumer from Omaha, NE reported to BBB that he had received an unsolicited call from CFBA offering to negotiate with his credit card companies to obtain reduced interest rates for a fee. Because this consumer had recently been notified by his credit card company that the interest on his card was being raised, he was interested in what CFAB could do to get his rate lowered.
The CFAB representative told the consumer that for a fee of $895 they would make arrangements with his credit card company to maintain the amount of his current minimum payment. They further stated that his future payments would be applied entirely to the principal, and he would incur no future interest charges. In addition, he was promised he would immediately save $1,200 or his $895 would be refunded.
The consumer accepted the offer and gave CFAB his credit card number. According to the consumer, His credit card was charged $895 two times on one day for a total of $1,790. The consumer additionally stated that the next day the company tried twice to transfer cash via Western Union, using his credit card. Luckily, the consumer’s credit card company would not allow the wire transfers and contacted the consumer who told BBB, “At the time these charges occurred, if they had all gone through, I would have almost maxed out my line of credit.”
According to BBB complaints, CFAB is failing to uphold money-back guarantees and is not refunding money in cases where they are unsuccessful in lowering rates. Based on BBB files, CFAB has a rating of “F” and has had 196 complaints filed against them over the last three years. Seventy-five complaints have not been resolved and these customers are still waiting for their refunds. Calls from BBB to CFAB regarding the Omaha complainant have not been returned.
BBB President Jim Hegarty advised, “If you would like your interest rate lowered, first, contact your credit card company. If you’re a good customer, it may be willing to negotiate your rate. Second, find a better deal elsewhere. There are many websites that can help you compare rates from different companies. Just be careful of those ‘introductory’ rates that skyrocket after a few months.” In addition:
• Never give personal information, including Social Security, bank or credit card numbers, over the phone to an unknown telemarketer. Always research the company first by reviewing its Reliability Report at bbb.org.
• When considering any company offering any type of financial assistance, insist on getting a contract in which all terms and conditions are clearly explained before signing up or providing credit card or other payment information.
• U.S. consumers can place their home phone number on the federal Do Not Call list by visiting www.donotcall.gov. If the consumer’s number is already on the list but continues to receive telemarketing calls—or is receiving robocalls on a cell phone- they can use the same website to report the incident to the FTC.