False promises as eviction moratorium ends
- Kim Thompson: Better Business Bureau
- August 23, 2021
- 745
The Biden administration may have extended the eviction moratorium through Oct. 3, but that doesn’t mean scammers have postponed their tricks. Con artists often take advantage of the confusion and stress surrounding major events. With millions in the United States behind on their rent, the moratorium’s end is a perfect hook.
As the eviction moratorium winds down, watch out for scammers offering loans, peddling credit repair services or promoting government programs. These cons are a way to trick desperate people out of money they don’t have.
For example, during the COVID-19 pandemic, BBB Scam Tracker saw numerous reports of phony “pandemic relief” grants or government programs that allegedly provided funding to people impacted by the pandemic. Once you “qualified for the grant,” the scammer would ask you to pay a processing or delivery fee to receive your funds. Of course, the grant didn’t exist, and if you paid up front, you just gave money to scammers.
Advance fee loans, debt relief and credit repair scams work in a similar way. They promise a loan — or to repair your credit — for an upfront fee. No matter how much you may need it, don’t be tempted by “guaranteed loans” or impossible services such as removing late payments or a bankruptcy from your credit report.
This recent BBB Scam Tracker report describes a situation more people will likely encounter as the eviction moratorium nears. “I'd been in a desperate financial situation for a few weeks now, so I had been looking for loans and being denied left and right,” the scam victim told BBB.
The victim received a call from a loan provider, saying their loan application had finally been accepted. There was just one catch: Before the company could release the money, the borrower had to increase their credit score. Fortunately, this company had a way to help.
“The way they would do that is they would send money to my account, and then all I would have to do is send it back and that would boost my score.”
Of course, the scammers never actually transferred the money. When the victim "sent back" the funds, they transferred $1,000 into the hands of scammers and overdrafted their account.
Double check any government program before you sign up. If an organization is offering you a grant or relief funds, get to know them before you agree to anything. Take a close look at their website and read reviews. If you think you might be dealing with an impostor, find the official contact information and call the company to make sure the offer is legitimate.
Be wary of out-of-the-blue calls, emails or text message claiming to be from the government. In general, the government will not contact you using these methods, unless you granted permission.
Think something seems suspicious? Reach out to the agency directly to confirm. Scammers often make up names of agencies and/or grants. If you doubt a government representative is legitimate, hang up the phone or stop emailing. Then report the suspicious calls or messages.
Do not pay any money for a "free" government grant or program. A real government agency will not ask for an advanced processing fee. Instead, find out if the grant is legitimate by checking www.grants.gov.
Advance fees are a concern. Not all businesses promising to help you repair bad credit are scams, but if you are asked to pay in advance, that’s a big red flag. In the U.S., credit repair and debt relief companies can only collect their fee after they perform the services promised.
Avoid guarantees and unusual payment methods. Real lenders never guarantee a loan in advance. They will check your credit score and other documents before providing an interest rate and/or loan amount. Fees are never paid via gift cards, CashApp or prepaid debit card. Unusual payment methods and payments to an individual are a big tip-off.
Visit www.bbb.org/canton or call 330-454-9401 to look up a business, file a complaint, write a customer review, read tips, find events, follow on social media and more.