First Financial Asset Management Scam: How to Avoid and Report

The first financial asset management scam is a serious issue that can have devastating consequences for investors. In 2010, a Ponzi scheme was uncovered in which a financial advisor used investors' funds to pay for personal expenses.

Investors were promised unusually high returns on their investments, but in reality, the funds were being misused. This is a classic red flag for a scam.

Be cautious of unsolicited investment offers, as they often come from scammers trying to get their hands on your money. In the first financial asset management scam, investors were contacted by the scammer through cold calls and emails.

If you're considering investing, do your research and only work with reputable financial advisors. The first financial asset management scam highlights the importance of due diligence in protecting your investments.

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The first financial asset management scam involved a company called Bernard L. Madoff Investment Securities LLC. This company was founded by Bernard L. Madoff in 1960.

It was a Ponzi scheme, which means that returns were paid to existing investors from funds contributed by new investors, rather than from profit earned. The scheme collapsed in 2008.

Madoff's company promised unusually high returns, often around 10-12% per year, to its investors. This was a red flag, as most investments typically offer returns between 4-8% per year.

The scheme was able to operate for so long because Madoff was able to convincingly present himself as a successful and trustworthy investment manager. He had a reputation in the financial industry and was even a member of the Securities Industry and Financial Markets Association.

Madoff's company was able to attract a large number of investors, including many wealthy individuals and institutions.

Financial scams can take many forms, and being aware of the most common types can help you avoid falling victim. Misrepresentation of credentials is a significant issue, with dozens of financial planning designations available, but no single requirement to practice.

The public may not be aware of the differences between these designations, ethics, or requirements for certification, making it easy for scammers to pose as experts. This can lead to unsuspecting clients receiving advice from someone with no education, experience, or background in the investment advising field.

Ponzi schemes are another classic type of financial scam, where organizers promise high returns with little or no risk, but instead use new investors' funds to pay existing clients.

First Financial Asset Management, Inc has been in business since 2010, but the lack of regulation in the financial industry makes it vulnerable to scams.

There have been 52 complaints closed in the last 3 years and 20 complaints closed out in the last 12 months, according to the Better Business Bureau website.

The field of financial planning is ripe for malfeasance because there is not one particular credential or licensing requirement to practice.

Dozens of financial planning designations exist, including certified financial planner (CFP), registered investment advisor (RIA), and certified public accountant (CPA).

The public may not be aware of the designations, ethics, or requirements for certification, making it easy for scammers to deceive them.

It's quite easy for someone to hang up a shingle and start doling out advice, as seen in the case of First Financial Asset Management, Inc.

The Consumer Financial Protection Bureau has taken action against companies like First Financial Asset Management, Inc, as seen in the case of Rucker v. First Financial Asset Management, Inc.

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A Ponzi scheme often incorporates unrealistic returns to lure in new investors.

Ponzi scheme organizers promise high returns with little or no risk, making it a classic scam.

These returns are usually paid out of funds from new investors, rather than actual investments.

For example, Shervin Neman promised his hedge fund would generate high returns by investing in foreclosed real estate, but in reality, he used the money to fund his extravagant lifestyle.

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Unrealistic returns are a common trick used in scams, preying on clients' greed and dreams of easy money.

If an advisor offers or guarantees returns higher than 12% to 15%, it's likely a scam.

The S&P 500 has averaged 10.53% annually over the last 100 years, making such returns highly unlikely.

Churning is a type of financial scam where a stockbroker makes frequent buy and sell trades to pad their own pockets.

This scam costs the customer in commissions and usually results in sub-optimal investment returns.

Traditional stockbrokers are paid when their clients buy or sell a security, which can motivate them to engage in churning.

Many stockbrokers have been charged with the churning scam, making it a serious issue that investors should be aware of.

First, make sure to vet and verify the financial advisor's background by checking websites like www.finra.org/brokercheck, www.adviserinfo.sec.gov, www.nasaa.org, www.naic.org, and www.cfp.net. This can help uncover unscrupulous advisors.

If you're being hassled by debt collectors from First Financial Asset Management, know that you're protected by the Fair Debt Collection Practices Act (FDCPA). This federal statute prohibits debt collectors from activities like contacting you more than once per day, calling you before 8 a.m. or after 9 p.m., and threatening you with arrest for unpaid debts.

You can report any violations of these terms by contacting the Federal Trade Commission (FTC) using the FTC website or by calling 877-382-4357. You may also report First Financial Asset Management using the CFPB's website or by calling 855-411-2372.

Here are some key things to know about First Financial Asset Management's collection practices:

First Financial Asset Management is a legitimate business, but their persistent calls might feel overwhelming.

They've resolved 100% of 16 negative reviews, which is a remarkable achievement and a clear indication of their commitment to customer satisfaction.

This suggests that the company has invested heavily in customer service resources and developed an effective complaint resolution process.

The age of their domain suggests that they've had sufficient time to establish a reputation as a reliable source of information and services.

Their website, 1fam.com, has a valid SSL certificate, which indicates that the website is secure and trustworthy.

You can look for the padlock icon in the browser and the "https" prefix in the URL to confirm that the website is using SSL.

First Financial Asset Management regularly updates its policies to reflect changes in laws and regulations, and these policies are easy to find and understand.

However, their website has relatively low traffic compared to other websites, which could be due to a niche focus or a potential lack of traffic and popularity.

You have the right to be protected from aggressive debt collectors like First Financial Asset Management. The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from contacting you more than once per day, calling you before 8 a.m. or after 9 p.m., and using offensive or vulgar language.

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You can report any violations of the FDCPA by contacting the Federal Trade Commission (FTC) using the FTC website or by calling 877-382-4357. You can also report First Financial Asset Management using the CFPB's website or by calling 855-411-2372.

If you're being harassed by First Financial Asset Management, it's advisable to collaborate with a professional agency like Credit Saint. By addressing the root cause, you can eliminate those disruptive calls for good.

Here are some known First Financial Asset Management, Inc collection call numbers: (602) 778-6985 and (602) 977-3700. If you're receiving calls from these numbers, you may be a victim of First Financial Asset Management, Inc phone harassment.

Debt collectors like First Financial Asset Management don't have the authority to arrest you for a debt. However, if you violate a court order, you may be arrested.

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First Financial Asset Management is a debt collection agency that acquires unsettled debts from creditors who have given up on collecting those amounts.

They might contact you through mail or phone to seek payment, and having a collections account listed on your credit report can lower your credit score, affecting your ability to secure loans or other financial approvals.

First Financial Asset Management acquires outstanding debts from various creditors, making it hard to pinpoint exactly who they represent, as this data often isn't shared widely and changes regularly.

You should not ignore them, as this can lead to the situation being escalated to another collection agency or them seeking legal action for the debt.

First Financial Asset Management is a debt collection agency that acquires unsettled debts from creditors. They might contact you through mail or phone to seek payment, which can lower your credit score.

They collect debts from various creditors, but the exact creditors they represent are not always publicly available. It's hard to pinpoint who they work for.

If First Financial Asset Management keeps calling you, it's likely because they're trying to recover a debt. Ignoring them can escalate the situation, so it's best to have a conversation with them about the account.

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First Financial Asset Management can report your debt to the collections bureaus, which can affect your credit score. They can also sue you if the debt is within the statute of limitations.

Debt collectors like First Financial Asset Management can't seize your property, but there are some exceptions. If the debt was tied to the property, they may be able to repossess it.

Paying a collection agency to delete a debt from your credit history can be a costly option. Credit Saint advises against paying for a delete to avoid causing more harm in the future.

Even after paying a collection agency, the item will still remain on your credit history for 7 years from the date of delinquency of the original account.

If you feel the item is reported inaccurately, you have the right to dispute it.

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Debt collection laws vary from state to state, so it's essential to know your rights and the laws in your area.

In some states, debt collectors are required to provide a written notice to consumers before initiating a lawsuit. For example, in California, debt collectors must provide a written notice at least 10 days before filing a lawsuit.

In Alabama, debt collectors are prohibited from making false or misleading representations to consumers, including claiming to be affiliated with a government agency.

Debt collectors in Alaska must provide a written notice to consumers stating the amount of the debt and the name of the creditor.

Debt collectors in Arizona are required to provide a written notice to consumers stating the amount of the debt and the name of the creditor, and must also provide a breakdown of the debt, including any interest or fees.

In some states, debt collectors are prohibited from contacting consumers at work or at home, or from contacting consumers' employers. For example, in Florida, debt collectors are prohibited from contacting consumers' employers, except in certain circumstances.

Debt collectors in Georgia are required to provide a written notice to consumers stating the amount of the debt and the name of the creditor, and must also provide a breakdown of the debt, including any interest or fees.

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Here is a list of some of the key differences in debt collection laws by state:

Debt collectors in Hawaii are prohibited from making false or misleading representations to consumers, including claiming to be affiliated with a government agency.

Debt collectors in Idaho are required to provide a written notice to consumers stating the amount of the debt and the name of the creditor.

In some states, debt collectors are required to provide consumers with a breakdown of the debt, including any interest or fees. For example, in Illinois, debt collectors must provide a breakdown of the debt, including any interest or fees.

If you're seeing First Financial Asset Management on your credit report, it's likely because you have an unpaid balance. First Financial Asset Management is a debt collection agency that specializes in purchasing and collecting overdue accounts.

Having First Financial Asset Management listed on your credit report can hurt your credit score. It indicates that you have past-due debts that have been handed over to collections, reflecting a history of financial difficulty or non-payment.

A debt collection company on your credit report can significantly harm your credit score due to several factors. It adds a negative entry to your credit history, impacting your payment history, which is a crucial component of your credit score.

Collections can remain on your credit report for up to 7 years, continuously dragging down your score during that time. This can be a long and frustrating process.

To remove First Financial Asset Management from your credit report, you need to find inaccuracies or errors on the account. A staggering 79% of credit reports have mistakes, according to a U.S. PIRGs study.