How to avoid debt consolidation scams!
Published by admin on December 18, 2009
How to avoid debt consolidation scams!
It’s not difficult to see the incredible growth that there has been in the debt consolidation companies industry, those that offer debt consolidation programs and solutions in recent years. At the beginning, the debt consolidation companies were some of the biggest advertisers on the internet and there are now more loan consolidation TV spot than we’ve ever seen before. However, a large number of these debt consolidation companies are now sued by several state attorneys, the IRS and the FTC since they do not comply with the rules.
One of the worst debt consolidation company has actually had a federal case filed against it and the FTC plus five states have sued the individual against the society apart. This company has declared Chapter 11 bankruptcy, but the reality is that they have ceased their activities themselves, they simply changed in so many other companies that are more likely around in some form or another.
Interestingly, many companies do not call themselves ‘debt consolidation company’ more because of the bad press and all the legal actions against this company. We can speak of ‘debt negotiation’ or firms ‘debt settlement’ companies who are basically ‘debt consolidation companies’ who use illegal tactics and should be avoided since you will never see again the money that you send them.
You can control the company that you are planning to use to consolidate debt, or any other company for that matter, with your local consumer protection agency and Better Business Bureau in the company’s location. Be aware that debt consolidation companies, with a good credit rating may mean absolutely nothing. In fact, over 75% of complaints received by Better Business Bureau does not count against the company’s credit rating if the complaint is considered solved. Better Business Bureau does not have the power to investigate complaints against debt consolidation companies, or to resolve them.
A special word of advice is to avoid any debt consolidation company that has a registered address in Maryland and Florida. This is because these two states do not regulate the debt consolidation companies. There are many debt consolidation companies available and if you really think that this is the best solution for you, than avoid those in Florida and Maryland. You definitely don’t want to deal with a debt consolidation company that has a bad reputation.
You can find a number of websites, just like this one that offer a customer review section for the most popular debt consolidation companies on the internet. This is definitely something worth checking since this way you will see if customers of a debt consolidation company you are considering signing up with has had problems in the past.
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