In June 2010, the Auto Relief Group LLC scam was shut down by government regulators for making false claims and engaging in deceptive and unfair advertising. Now Auto Payment Solutions and the National Auto Loan Reduction Center are airing similar television commercials with claims they can also facilitate loan modifications on car loans.

This is nothing more than the reincarnation of an old scam. Auto Payment Solutions and the National Auto Loan Reduction Center cannot do anything on your behalf that you cannot do on your own. Plus, you are better off if you negotiate your own arrangements with your lender rather than paying hundreds of dollars for them to send form letters on your behalf.

Auto Payment Solutions and the National Auto Loan Reduction Center are referral services that sell leads to other companies that claim to be able to negotiate loan modifications on car loans. These companies indeed are victimizing drivers who are falling behind on their car payments. As a desperate attempt to avoid repossession, many consumers are putting their trust in these rogue companies in hopes that they can keep their cars. The trouble is, by sending Auto Payment Solutions or any affiliated company your hard earned cash instead of sending it to your lender, you are actually making matters worse.

After viewing the television commercial for this scam, I immediately noted the similarities to the Auto Relief Group scam that made headlines earlier in 2010. The claims made in this scam are not only unrealistic, they are absolutely false. Auto Payment Solutions and the National Auto Loan Reduction Center claim to be able to:

• Lower your monthly payments by 50%
• Extend your payment terms
• Stop vehicle repossession
• Save your credit

The truth is, no company can do any of these things on a consistent basis. If you sign with that company, you will likely find out too late that they cannot fulfill their empty promises.

The costs of falling for one of these scams can be staggering. You might be out their fees, but if your car is repossessed, it could cost you an extra $500 to $1,000 on top of your late payments if you can convince the lender to let you pick up where you left off. The problem is that once a lender has repossessed your vehicle, generally the only way to get it back is to pay the entire loan balance plus all costs associated with the repossession. Those costs can include the repo fee, storage fees, legal fees and late fees.

If you are having trouble with your car payments, then you need to consider one of the following realistic options that may provide a solution:

1. Discuss your situation with your lender, preferably before you fall behind to see if they can provide some limited relief (refinance the car loan for a lower payment and longer term, special repayment arrangement to catch up on late payments).
2. Complete a credit counseling session to develop a budget and see if other high-interest bills are interfering with your car payment. You might be eligible for lower payments and interest on certain unsecured debts.
3. Get permission from your lender to sell the vehicle at a partial loss, with the remainder to be repaid as an unsecured loan.
4. Speak with an attorney if the car payment is only part of a bigger disaster that is brewing.

The false claims made by Auto Payment Solutions and the National Auto Loan Reduction Center are unconscionable. Do yourself a favor and make sure that you are not one of the victims of the Auto Payment Solutions scam.



Visit the Auto Payment Solutions forum for the latest updates on Auto Payment Solutions and the National Auto Loan Reduction Center.

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Note: Auto Payment Solutions and the National Auto Loan Reduction Center are not related to Auto Payment Solution of Reno, NV according to Charles Johnson CEO/Owner of Auto Payment Solution. Johnson provided the following additional information to differentiate his company from those depicted above:

"The TV commercial is produced by a company by the name of spotlight media. The TV commercial is on their site and on their alias site autopaymentsolutions.tv. Auto Payment Solution of Reno NV has no affiliation with this company. The alias spotlight media uses on its TV commercial is Auto Payment Solutions. (note the "s" on the end of Solutions). We have no affiliation with the brand name Auto Payment Solutions. When I started Auto Payment Solution, spotlight media had not yet started running its commercial and I was unaware of them. It is true that we are an auto loan modification service company. We provide a service to people in danger of losing their vehicle to repossession. It is also true you can attempt this on your own. The loan processing team we contracted has the highest success rate in the country. It is true that not everyone can get their auto loan modified. We have loan specialists who pre-approve your file before we request any information from you and submitting it to processing. Like any service, we charge a fee for our service. These negotiations are stressful and time consuming. Many people do not have the time during business hours to make the necessary calls to negotiate with their lender. Others people simply do not want to deal with the stress involved confronting and negotiating modified terms for their loan. Auto Payment Solution will gather the necessary information from you and do the negotiation for you. There are many companies on the web who offer similar services."

The caller claims you owe on a debt. They know your social security number and one of your account numbers. Would you believe this could be a scam?

According to Indiana Attorney General Greg Zoeller, your next debt collection call could possibly be a scam. He is warning consumers to be mindful of what information they provide over the telephone, no matter how genuine the caller appears to be.

There are signs that some scammers are actually using private information that may have been obtained through data breaches of retailers or other entities. They are using this private information to pretend that they are a legitimate debt collector.

For some consumers, they know right away that they owe no money to the claimed debt collector. For others though, they owe so many creditors that they really don't know. In some cases, the scammer may have knowledge of a debt that the consumer legitimately owes. After all, this information is clearly listed on their credit reports!

Some victims have wired money to pay off one of these phantom debts. Others provided their bank account information, only to have their checking accounts cleaned out by criminals.

There is one protection that consumers have that will protect them from these scams. Always request validation of any claimed debt that is owed within 30 days of the debt collector first contacting you. You have this right, and any debt collector that cannot validate this debt with you cannot legally pursue collection of that debt.

For some, the warning came too late. Not only did they lose money, they also gave out private information that opened up the doors for identity theft.

While data breaches can be damaging, most victims shoot themselves in the foot by voluntarily providing sensitive financial information without first obtaining verification that they are providing the information to a qualified debt collector. Simply calling the number that they provide is not proper verification, since anyone can set up an "official" call in number that purportedly belongs to the actual debt collector.

What makes matters worse is that these scammers prey on vulnerable consumers who bow to threats of legal action and illegal consequences if they don't pay. The scammers have called the same victims repeatedly over a short period of time, harassing them with threats of jail time if they don't pay today. Of course, debtors prisons are a thing of the past.

If you feel that you have been a victim of either a legitimate debt collector that is breaking debt collection laws or a scammer trying to pull a fast one, you should contact your state's Attorney General to inquire about the firm. They can let you know if a firm is even licensed to practice debt collections in your state. You will also have the opportunity to file a formal complaint. Most Attorneys General target such abuses according to trends in consumer complaints to their offices, so it is important to make your voice known.

Never send payment for any debt that has not been properly validated. If you cannot verify that you actually owe a debt, then you probably should not pay it. A debt collector cannot satisfy the burden of proof in a court of law that you owe a debt if they fail to provide validation to you as a debtor.

By Kenneth Long on September 1, 2010

UPDATE [4/21/2011]: Deutch faces contempt charges for diverting money from client refunds.

While Roni Deutch sales reps boast of a 99% success rate, barely 10% of their clients are actually granted a reduction in their tax bills. Based on these figures, it is expected that the total fees paid by clients greatly exceeds the total reductions in income taxes approved. California's Attorney General labeled what has been called by many the Roni Deutch scam as a "heartless scheme" that swindled money from those with tax problems. Tax Lady Roni Deutch has aired hundreds of television commercials claiming that she has decades of experience in negotiating reductions in income tax bills.

False Testimonials

Normally when you see testimonials, it is expected and usually disclosed that the individuals may not be representative of the normal client. In other words, results may vary, and your results are likely to be less favorable than those providing testimonials.

Deutch's firm hit a new low when it aired the ad "It's Your Turn" and featured three "successful" clients that her firm helped. However, none of those "successful" clients have received any reduction in their income tax bills. In fact, they owe more than before they enrolled their cases with Deutch, having incurred additional interest and penalties.

The blatant misrepresentation of the firm's success should be a real eye-opener for any client considering doing business with Deutch or any other large scale tax representation firm. Any guarantees, promises or extraordinary success rates should be met with skepticism.

Had her clients checked out the firm with the Better Business Bureau, they would have discovered an "F" rating. A simple call to the Attorney General Consumer Protection division would have revealed a high pattern of complaints. Instead, they are now on the hook for retainers ranging from $1,400 to $4,700 paid for largely undelivered services. This is money that could have gone towards their tax debt.

If you owe the IRS or your state or local tax authority, you should contact that organization directly if you need help paying an outstanding tax debt. Many times, the tax agents are able to approve a repayment schedule that could consist of monthly payments spread out over months or years. A tax attorney could be highly effective in situations where you need tax advice on decisions that could impact the amount of taxes that you owe. They are less effective in negotiating lower payoffs on tax debts believed to be correct. Make sure you research tax relief scams and company ratings prior to entering into a contract with a service.

Taxpayers that believe that the IRS has acted unfairly may be able to get free help through the Taxpayer Advocate Service.

California Attorney General Jerry Brown's office announced the $34 million lawsuit on August 23, 2010. Brown stated Tax Lady Roni Deutch "promises to significantly reduce their IRS tax debts, but instead preys on their vulnerability, taking large up-front payments but providing little or no help in lowering their tax bills." Deutch was also accused of "a bevy of false promises and misrepresentations."

Perhaps the most troubling detail released by Brown's office was that Deutch's firm regularly uses false billing statements so that she can deny refund requests. That would suggest that much of what the firm does is send form letters that automatically populate with the taxpayer's personal information and debt amount. The use of false billing statements implies that the firm bills for a manual process by a licensed attorney. The actual process is likely an automatic letter generation campaign.

Texas Attorney General Greg Abbott filed a lawsuit against American Home Mortgage Servicing (AHMS) for serious violations of state law that may have contributed to unnecessary foreclosures to Texas homeowners. The lawsuit was filed August 30, 2010 and is seeking civil penalties from the company.

An investigation of AHMS by Texas officials found several violations of the Texas Debt Collection Act and the Texas Deceptive Trade Practices Act (DTPA). Each violation of the DTPA is subject to a $20,000 civil penalty against the firm.

Texas investigators found that some homeowners who made their payments on-time were falsely accused of late or missed payments. AHMS incorrectly charged late fees and forced some homeowners to establish unnecessary escrow accounts as common methods for increasing revenues. Some homeowners had their accounts drafted for the payment only to find that their account was not properly credited with the funds.

Some mortgage defaults were attributed to the illegal actions of AHMS. Foreclosure proceedings were subsequently initiated on properties in which the homeowners had actually made their payments, only to have them improperly credited to their account.

Finally, AHMS's home retention team was found to be substantially ineffective. Most applicants did not qualify and were unable to avoid foreclosure. Others who did receive a mortgage modification found that their mortgage payments increased rather than reduced.

AHMS customers should contact the office of the Attorney General in their state to file a complaint. Texas customers may call 800-621-0508.