A reader sent in a mailer they had received from Texas Assistance Group and said, “Looks like fraud?”
I don’t know if it exactly looks like fraud, because in my opinion it looks more like bullshit.
Here are some red flags for me. But each person should feel free to do their own examination and reach their own conclusion.
The State of Texas has no listing for a registered company named “Texas Assistance Group.” I could not find a registration elsewhere. Curiously the letter refers to the company as FSD in the fine print. Shouldn’t that be TAG?
The letter does not identify where the company is located.
The letter is referring to IRS Publication 4681 which is about cancelled or forgiven debts. They qualify their statement about tax-free credit card debt forgiveness by mentioning you must be insolvent. Otherwise, any debt forgiven will be subject to income tax.
They make an estimate about debt owed but where did that number come from? Recent lawsuits against debt relief companies have alleged the access of such information based on credit bureau reports is impermissible. They say, “After reviewing your situation,” but how could they do that without permission?
Then they make an estimate about what the resolution will be but they don’t give any clue if those estimates conform with the Federal Trade Commission policy on calculating performance. Are fees factored in? What is their performance rate? How many people actually achieved those results?
Then there is this perplexing statement about using their service will “restore your credit rating upon debt satisfaction.” But if they settle your debts as they promise that negative action will stay on your credit report for up to 7.5 years. And if they are charging a fee and promising to restore your credit there is the issue of the conflict with the Credit Repair Organizations Act.
At the very least I would suggest you ask a lot of questions to check them out. Find out who FSD is while you’re at it.
If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.