The Truth behind Car Loan Elimination Scams

There are a number of car loan elimination companies out there that claim that they can get you out of your car loan. While this would be great for you, many times, it is a scam. Here are a few things to consider about car loan elimination scams.

How They Work

Car loan elimination scams are very common. The companies that offer this service usually mass market in order to find people to work with. They will send out mass emails or send flyers out in the mail. They will use a lot of hype and slick advertising to get people to contact them about eliminating their car loan. 

When you are very deep in debt, you want to believe that there are some options out there that can help you eliminate your debt. Therefore, this sounds like a pretty great proposal. You hire someone to help you get out of your car loan debt. It is cheaper than paying off the loan, so to you, it makes sense. The only problem is, the process is completely bogus.

You call the company or visit their website and they start to tell you about the process. For a fee that usually amounts to $1000 to $3000, they will show you how to get your car loan eliminated. Most of the time, they will not be handling this process for you. They will only show you how to do it and then let you handle everything. They may provide you with a generic letter that you can show to your creditors. It may say something like "Declaration of Voidance" or "Bond for Discharge of Debt." You are supposed to be able to show your car loan company this document and then they are supposed to just forgive the debt. However, the bad thing is that these documents do not actually work. You pay them the fee, take the documents, and then do what they suggest. As it turns out, the creditor will usually have no idea what you are talking about and ask you to leave.

Principles Behind Argument

When you start to learn about the methods that they tell you to employ, it sounds great. They tell you things like all debt is technically illegal. They tell you that there are court cases that are starting to rule in favor of the debtors as a result of this glitch in the system. They want you to believe that once you sign the loan document, the lender is paid in full. Therefore, they are not out any money when you use this process.

Caution

When approached with an offer like this, you should exercise extreme caution in moving forward. There are a few ways that you can legitimately get rid of debt. You can make your payments and pay it off, you can do a debt settlement, or you can file for bankruptcy. If someone is promising otherwise, you might want to ask for proof before you part with a few thousand dollars.