Less than legitimate "debt settlement companies" have found themselves in the perfect environment to exploit during recent years. Scams Artists posing as useful debt settlement companies have been thriving on the credit crunch of recent years and on the millions of Americans who are in debt. Genuine government bailouts of banks and other corporate giants have made the idea of an actual a "government sponsored" bailout for consumers all too easy to sell. The fact of the matter is, there is no government sponsored bailout for consumer's with credit card debt.
This may sound contrary to the many radio, tv, and internet ads you may have been hearing lately. A great deal of misleading advertising has been created to deceive desperate individuals and families in order to trick them into paying large upfront fees for what turns out to be absolutely no help at all.
You may recall recently having heard catch phrases like "Credit card debt relief act" "president Obama's debt relief plan" and "national debt hotline." These misleading terms are completely illegitimate and deceiving. Again, no such government program to bail consumer's out of credit card debt or even to alleviate their debt.
Many companies who are advertising with these phrases aren't even directly in the debt settlement business. Several are simply marketers who hope customers will contact them and give them their information so that they can sell the leads to other companies for a hefty sum. Many are just companies who ask for an upfront fee without any promises of delivering or actually delivering any debt settlement whatsoever. What's worse? Dealing with any of these companies is likely to greatly damage your credit.
Luckily, the Federal Trade Commission (FTC) has created new laws that take effect on September 27,2010 that will help protect consumers from debt settlement scams. Under the new laws debt settlement companies and affiliates will be required to:
- Disclose how much the companies charge to settle debts
- How long the process is likely to take
- Disclose any negative consequences of debt settlement, including the facts that your credit scores could be lowered, you may get sued, and you're likely to get a tax bill for any debt that is forgiven
- Follow a ban from collecting upfront fees
Until then, be sure to beware in order to protect your credit.
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Matt
Toll Free: 888-NCFIXER (623-4937)
Toll Free Fax: 888-FAX-4020 (329-4020)
Local: 860-282-6181
330 Roberts Street 4th Floor
East Hartford, CT 06108
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