How would you know if a debt settlement company is legitimate?  When times get tough and people get desperate, the schemers and scam artists start popping up all over the place.  You have probably started seeing the commercials on tv advertising credit debt settlement and debt settlement services.  The concept of debt negotiation is excellent the follow through by some companies can be poor.  You want to make sure that you are dealing with a reputable company.  If you do a Google search on the web you will see tons of people that are disatisfied with a debt settlement company.  Many debt settlement companies are scams and they have taken peoples money.  Just do a Google search on Jubilee Financial.  This was a debt settlement company in Scottsdale that ran off with the clients money.

How Can You Tell If A Debt Negotiation Company Is Legitimate?  You may see the rip off report show up.  If you see it a lot, it is probably not a good sign.

Dealing with any company can be a leap of faith but their are things you can do to check a debt settlement company out.

1.  Just do a Google search of the company and see what pops up in the search results.

2.  Look to see if they are members of the debt settlement industry accredited organizations like USOBA or TASC.

3.  Check with the BBB or better business bureau.  You can do this on line.

4.  Call your local consumer protection agency.

5.  Call your local attorney general.

There is no fool proof method but there are ways to protect yourself.

This information is of general interest and is not be to relied on.  If you need professional advice, seek the services of a qualified professional or attorney.

Is Ameridebt still in business? Ameridebt was forced to shut down its debt consolidation operation as part of a settlement with the FTC. The Federal Trade Commission charges that it deceived consumers into paying at least $170 million in hidden fees. The FTC charged Ameradebt with misrepresenting that it was a non profit credit consolidation company and that it show consumers how to manage their money for no up front fees. The FTC also charged Ameridebt with deceptive business practices and with violating the Gramm Leach Bliley act by not providing customers with the required privacy notices.

Is debt consolidation through a credit counseling company bad? Continue Reading »