West Virginia Attorney General Darrell McGraw identified the First Secure Management
debt relief scam after investigating numerous complaints filed by state residents. Debtors were called by telemarketers who claimed that First Secure Management would lower their interest rates, guaranteeing a minimum savings of $2,000.
Debtors paid nearly $1,000 to First Secure Management in vain hopes of saving at least twice that in interest. The savings never materialized leading to the complaints being filed.
West Virginia investigators linked First Secure Management with another firm, Arizona-based Allied Corporate Connection. Investigators made the discovery that the private mailbox used by First Secure Management was leased by Allied Corporate Management. Owner Lisa Miller failed to comply with an investigative subpeona from the Attorney General, leading to a lawsuit to ban Millers companies from doing business in West Virginia.
First Secure Management is listed as a debt settlement company with the Better Business Bureau serving Central, Northern and Western Arizona. Not surprisingly, their
BBB rating is an "F".
A review of the First Secure Management website revealed the following disclaimer:
"NOTICE: First Secure Management, hereafter referred to as FSM, is not a debt management company. FSM does not negotiate or take any other action on your behalf directly with your creditors, but FSM will educate you and show you the best ways for YOU to negotiate with your creditors. FSM will not pay your debts, and will not receive or otherwise control your funds to distribute those funds to your creditors. FSM will not improve your credit record, history, or rating, but will educate you and show you how you can save money and on how YOU can control your own personal financial situation."
Based on this disclaimer, it appears that clients of First Secure Management are paying nearly $1,000 to do something on their own. They could get better education from a credit counseling agency for free.
The source of the Attorney General complaint is that while the website says one thing, their telemarketers were saying much more. They were claiming to be able to lower clients' interest rates and guaranteed savings of at least $2,000.
While First Secure Management may be blocked from West Virginia, they are still able to operate in other states. Debtors should evaluate any claims to make sure they understand what a service will actually do for them. Additionally, a quick check with the Better Business Bureau can often uncover any red flags before you sign up or send money!
Debt settlement companies do not lower interest rates.
Credit counseling agencies can often intervene to help you obtain lower interest rates, but they do so with your creditors permission. They cannot promise to lower your rates, and any company that makes such a promise is likely a scam.