Debt relief and debt consolidation loans companies have been flooding Television sets and e-mail in-boxes with ads for some time. Abuse of customers didn’t go unnoticed, and as a result, the govt instituted more rules of the debt consolidation reduction field. There are a lot of frauds nevertheless out there, so consumers would do well to check up on any company soliciting instant cash for companies from them.
Federal Trade Commission cracks down on debt settlement fraud
The Good Economic downturn was a great opportunity for many businesses. Fast debt relief and debt consolidation reduction loans started to be offered. All a customer had to do was hand over an upfront fee and make monthly payments, and their debt would be gone before they knew it. A lot of these corporations turned out to be taking a cash advance for services which were never rendered. After a lot of grievances to the Federal Trade Commission, new rules were imposed in late Oct. Since then, there has still been abuse like this occurring. This has led to suits being filed by the attorneys generals in many states. A common scam is to ask for some money currently for a retainer and say a staff attorney will get a person the debt settlement relief he or she needs, according to the Financial Times. Then, the “company” pockets the cash and never settles a thing.
Make certain to not fall into debt settlement program traps
If something seems too good to be true, it usually is. You will find some things to be careful when looking into consolidating debt through an agency. If a company asks for an upfront fee for debt consolidation reduction, it’s probably a scam. Non-profit corporations exist out there. Debt management is something they help with. The Better Company Bureau and the National Association of Financial Advisors are where you need to check potential debt settlement corporations with.
Other things to try and do
Debt like charge cards, installment loans and personal loans could be really overbearing sometimes. You will find things that can be done with these though. Sometimes you are able to get a payday loans to help with some creative budgeting as well.
Citations
FT
ft.com/cms/s/0/8b73b788-f5c6-11df-99d6-00144feab49a.html#axzz16857y44E
NAPFA
napfa.org/tips_tools/index.asp
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