Let’s take a look at what is a bait and switch scheme. Some, but not all involve a high conflict personality (HCP). The situation with the HCP begins with words or phrases such as, “just trying to help,” “help improve her/his credit,” or “have a history of showing financial responsibility.” The altruism is disguised by intent to do harm. There is no helping – there is harming. There is no improving credit or showing consistent payments, there is intention to show fiscal irresponsibility and unreliability.
As we know, credit scores help to show we are responsible for ourselves, that we make payments and purchases we can afford, and that we live within or below our means. Tanking a person’s credit will impede them from getting an apartment, a loan for a car, the purchase of a townhome and even a job. The effects can be disastrous and, in some cases, involve bankruptcy or repossession of material assets. It can be nearly impossible to get out of this situation, so it is very important to understand the contracts and legally binding documents that are being signed, what your responsibilities are, and what you can do to control or mitigate being caught up in this scam.
Looking at an example:
1. There is a mutual desired purchase between two people. It can be a pet, a car, real estate, furniture, down payment, caregiving responsibilities, roommate situation, etc.
2. There is a contract or loan involved, whether verbal or written. The trick that victim’s need to be aware of is the HCP will trick them to sign an agreement or a legally binding contract as a co-signer (or partner) to show ownership of the intended purchase or agreement. Part of the bait is having ownership of something, especially if that something is important to the victim.
3. It is at that time that the HCP states agreements for the purchase that can sound like or be similar to: “I will pay for it,” “I’ll make the payments,” or “you don’t have to pay for this,” and even adding, “I don’t want to have you stress over this and get yourself sick.” They will reassure the victim that there are no loopholes, no caveats, and no strings attached. In this example, we are going to assume the victim signs the documents.
4. The switch occurs after the deal is done and both parties have signed the documents. That’s when things drastically take a turn for the worse. This could occur days, weeks or even a month afterward. The HCP states that threats of abuse will occur if the victim doesn’t comply with the new terms. The terms require that the victim now pay for the entire purchase (which is well out of their budget), and be threatened to make payments beginning immediately.
One way a person can prevent being a victim, is to speak with the professionals involved (without the HCP) in the transaction about their hesitations that they may be tricked into signing something they cannot pay for or sign documents that are not in their best interest. One of the best ways to handle this is to prevent the sale or loan from transpiring, then contacting authorities about their suspicion.
True helping and a desire to allow a person to have a fresh start or move in the right direction does not come with strings attached unless discussed beforehand so that all parties are on the same page. Also, you need to pay attention to what your gut is telling you about a situation. If you are picking up on - something is wrong or something is up, and at the same time you are feeling queasy, having indigestion or bloating, these are signs you are picking up on something that is very wrong.
As professionals, we need to recognize when situations don’t seem quite right. The bait and switch is a very hard scheme to detect, even for the victim. Having other individuals involved in the transaction can be beneficial, as now, you have a few to several others that can share their insights and reflections. They too may be able to pick up on things that are said, strange behavior, unusual behavior (when compared to similar transactions), and decide to perform a background or due diligence check to see if other information can be gleaned.
PC: Prostock Studios
