Watch Your Back When Choosing A Consumer Debt Relief Service
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With the enormous amount of debt that is continuing to grow, numerous companies are beginning to appear to offer consumer debt relief services. While some actually know what they are doing others are in the business to take advantage of your current situation to get your hard earned money. A good service will teach people to take control of their spending habits and adjust their lifestyle to pay back the debt owed. A bad company will offer little or no advice or services to those who are desperate for some sort of relief and will take their money and run. Before you agree to any type of consumer debt relief service, you should always do your due diligence and find the one that fits your needs.
It may surprise some people that many of the consumer debt relief companies are funded by lenders, including credit card companies while still collecting a service fee from those they claim to be helping. Before agreeing to a contract with a consumer debt relief counselor, you should know who owns the company and where the loyalty of the workers is focused. A company owned by a credit card company, likely will be more focused on recovering as much of the owner’s money as possible as opposed to helping the debtor out of their current jam.
Other than bankruptcy court, there are no consumer debt relief agencies operated by the government, but they do have to follow existing rules concerning fair credit collection laws as well as outright fraud. A few companies have opened their doors, collected initial fess from customers and then disappeared without doing any actual work on behalf of their clients.
Just Because It Says Non-Profit Doesn’t Mean They Won’t Rip You Off
Many companies tout their services as be not for profit, indicating they will not make money from the people they are claiming to help. Actually, it is quite easy for nearly every business to be non-profit provided their expenses are equal to their income. Some of the consumer debt relief companies keep from making profits by ballooning their expenses, such as those use to pay the salaries of their administrators, some of which make over a million dollars a year.
When enough people have complained about a lack of service from a consumer debt relief agency, the government will investigate and often charge those responsible, at least putting them out of business. Unfortunately, it is rare that any restitution finds its way back to the affected individuals.
What you will usually see and hear about more often than not is that most of these consumer debt relief companies will simply pack up and leave town and re-open somewhere else where they can take advantage of more consumers that are desperate for help out of their debt. It doesn’t matter where they move to, there are people in debt everywhere. The market is open for these type of predators and they will continue to take advantage of the unaware as long as they are making money.
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March 10th, 2008 at 9:51 am
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