Par Funding Debt Consolidation Scam
Small businesses have always formed the backbone of the US economy, creating hundreds of thousands of jobs and uplifting local communities. They contribute to the country’s exports and overall national income. However, unlike most large corporations, small businesses do not enjoy economies of scale, such as access to finance. In fact, cash flow problems are the number one reason why many small businesses fail to survive.
Luckily, small businesses in today’s economy have a variety of ways to receive funding to grow and improve their cash flow situation. These include business term loans, equipment loans, invoice factoring, and merchant cash advances, to name a few. Par Funding is one such company that provides unique and customized short-term financing solutions to help businesses reach their goals. Businesses owners can apply for a loan designed specifically for their needs and receive their funds within a few hours.
Par Funding Debt Settlement Scams
Unfortunately, such business owners may become the target of vicious debt settlement scams. These scammers targeting Par Funding clients reach out to clients who have borrowed funds from Par Funding and claim that they can settle your debt for a lower amount. Some scammers pretend to have access to a ‘special government program’ while others charge you an upfront fee in return for a service they cannot provide.
It should be known that these debt settlement scammers have no legitimate business and most of them are failed loan brokers who make cold calls in the hope of conning honest, hardworking folks to earn quick cash. When they do find a prey, they demand an upfront fee of $1,300 to $2,500 on the same day in return of false promises that they can never deliver on. Once they receive your money, they leave you hanging and go over to the next victim.
How to Identify a Debt Settlement Scammer?
Debt settlement scammers are extremely cunning and have trapped thousands of people nationwide. However, you can easily identify a scammer if you look closely for the following signs:
- Their ‘debt settlement company’ charges upfront fees. Laws of the Federal Trade Commission (FTC) state that any legitimate debt relief company cannot charge you an upfront fee before your debt has been settled or reduced. Any company that pressures you into paying money upfront is in violation of the FTC and should raise red flags immediately.
- They claim they will negotiate with Par Funding. Par Funding has made it clear time and time again that they will never negotiate with any third-party debt consolidation companies. Therefore, anyone claiming they can negotiate on your behalf is lying and is possibly a scammer.
- They claim they have access to a ‘special government program’. The FTC and the Consumer Financial Protection Bureau have warned consumers to avoid doing business with anyone who claims to have access to special or new government schemes to help you reduce your debt. This is a definite sign of a scammer.
- They are pushy and shy away from paperwork. Debt settlement scammers are often very pushy and create a false sense of urgency in order to create panic. They will not explain the risks to you clearly nor will they disclose the cost and terms of service. They will shy away from legal paperwork and will ghost you once they receive your money.
What Can You Do?
Par Funding does not negotiate with any third-party debt consolidation company in order to protect the interests of clients. If you would like to have the terms of your agreement modified, the best course of action is to reach out to your account executive and discuss your available options. Your account executive will work closely with you to reach a solution that works for you and your business.
Paying to a debt consolidation company is a complete loss for you since the only action they can take on your behalf is call and ask Par Funding whether your payments can be reduced. This is a simple task that you can do yourself without paying a hefty sum of money to someone else and falling even further behind on your payments. Please note that debt settlement companies are not lawyers and do not have any legal standing. Therefore, Par Funding strongly advises its clients to steer clear of such companies and potential scammers.