Credit Card Debt Help and Fraudulent Charges

Many consumers seeking out their best debt relief options may be in the dark regarding recent charges the creditors may deem fraudulent and how that may effect their status with, for example, a debt settlement company. Essentially, it seems that there are many instances when consumers charge things prior to enrolling in such a program or perhaps filing bankruptcy without, at that given time, planning on doing so. So, how can these creditors prove that the charges weren’t in fact just a product of the normal spending pattern? The truth of the matter is that there is no objective formula creditors can use to determine whether or not the activity was indeed fraudulent. It is literally impossible to perceive the intentions of every consumer who has made a charge in the recent time leading up to a bankruptcy or enrolling into a debt settlement program. As a result, the creditor retains the power of ultimately making this decision because they are in fact the ones who are owed the money. If you give them any reason to believe that the actions are non dischargeable, the results could be highly detrimental to your financial situation.

To begin, if you enroll in a debt settlement program and the creditors believe that your recent actions are non dischargeable, they can refuse to negotiate low settlements for the consumer and ultimately you will have to cough up more of the dough. On the other hand, they could refuse to negotiate altogether and pursue legal action to collect the debt if they believe you acted with faulty intentions at the time of a particular purchase. Remember, because the debts are considered past due while a consumer is enrolled in a debt settlement program, the creditor reserves the right to pursue legal action to collect the debt. And while it is a last resort for them to do this, don’t give them any reason with your recent purchase activity to find motivation to do so. To decrease the chances that your actions would appear to be fraudulent, it is necessary to understand the positive and negative factors for discharge.

There are three types of things that will increase the likelihood of a creditor considering recent activity to be fraudulent. The first type of detrimental activity in the time leading up to enrolling in a debt settlement program is to go ahead with balance transfers on certain accounts. In simple terms, they may interpret the transfer as an attempt to have the large balance appear with a creditor that negotiates more favorable rates. In addition, taking out large cash advances is not in your best interests. Creditors will wonder why an individual who already owes a large amount of money is increasing the amount of debt they have with a cash advance. And finally, making any large luxury purchases will certainly result in high levels of speculation on the creditor’s end. If you go out and charge a big screen plasma T.V. right before you enroll into a debt settlement program, it is likely that those actions will be considered fraudulent.

Ultimately, there is a basic formula for consumers seeking any debt relief option to follow in order to improve their financial situation. Refrain from engaging in the activity that was previously mentioned. In addition, understand what is considered to be honest activity in the eye of the lender. Having a consistent spending patter is one way to ensure the creditor will not view your activity as fraudulent. Making payments right after you charge something is another good way to do this. And certainly, if there is an emergency that has come up that forced your financial situation to be what it is, the creditor will not view your activity as fraudulent. Keep in mind everything that has been discussed if you are indeed a consumer who is in need of professional debt help.