9 Tips for Avoiding Debt Relief Rip-offs Scams
Steer clear of debt relief companies that:
- charge any fees before it settles your debts
- guarantee they can remove your unsecured debt
- tout a “new government program” to bail out personal credit card debt
- promise that unsecured debts can be paid off with pennies on the dollar
- tell you to stop making payments to or communicating with your creditors
- tell you it can stop all debt collection calls and lawsuits
- claim that creditors never sue consumers for non-payment of unsecured debt
- promise that using their system will have no negative impact on your credit report
- claim that they can remove accurate negative information from your credit report.
If you decide to work with a debt settlement company, be sure to check it out with your state Attorney General, local consumer protection agency, and the Better Business Bureau. They can tell you if any consumer complaints are on file about the firm you’re considering doing business with. Also, ask your state Attorney General if the company is required to be licensed to work in your state and, if so, whether it is.