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As consumer debt levels continue to rise in the United States, more
and more
debt relief companies are falling under public scrutiny for their unethical
business practices. While there is no arguing that a majority of
these companies are not conducting business properly, consumers
facing outstanding debt obligations need to know that there is a
large proportion of legitimate
debt relief
companies available for representation. A major problem that
consumers face when attempting to select the right company to handle
their financial situation is figuring out which companies are in
fact reputable and which companies are likely making empty promises.
This article aims at informing consumers how to determine the
legitimacy of a debt relief company without wasting time sifting
through unreliable literature on the internet, financial magazines,
and local newspapers.
1. Find the debt relief company on the Better Business Bureau.
Consumers can find companies on their website (bbb.com or bbb.org)
or give the bureau a call to research any particular company. The
bureau can provide general information about a company as well as
the number of complaints consumers have made that have been filed
through them. This holds true for both companies who are members or
not with the BBB. Consumers should shy away from debt relief
companies who have a lot of complaints.
2. If you are looking for a debt settlement company, find out if
they are a member of the Trade Association of Settlement Companies (TASC).
You can do this by checking out the association’s website (tascsite.org)
and locating the company on the homepage. TASC sets standards for
settlement companies in the industry.
3. Have the debt relief company send you samples of the results they
have reached with credit card companies. If it is a debt settlement
company, make sure you take a look at sample settlement and
negotiation letters that they have reached with your creditors. If
the letters are for your specific creditors, even better.
4. Be weary of debt relief companies who make flat out guarantees
about the amount of money they can save you. If a debt settlement
company is telling you that they can settle the debts, guaranteed,
for 30-40% of the total balance that is completely unrealistic.
Although certainly there are creditors who tend to accept
settlements for this amount, it’s also possible that an account will
not settle and a realistic estimate should reflect that fact. Look
for honest companies who are up front about the advantages and
disadvantages of their debt relief program.
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