Avoid Scams When Working With Credit Card Debt Relief

Due to the current downward spiral of the US economy

as a result of COVID-19, the likelihood of credit card debt is

growing, and consumers are beginning to feel overwhelmed.

Consumers throughout the country are seeking options to

climb out of debt. In states like California, debt settlement

companies are promising consumer to reduce, or erase

their debt for a fraction of the total amount. This may

seem like a great solution to your problems, but consider

your options before committing to these companies.

Prior to choosing a debt relief service, check out your

state Attorney General and local consumer protection

agency. They can tell you if there are any complaints surrounding

the debt relief firm that you may want to consider hiring,

or if they are even properly licensed to work in your state.

Never take what these agencies say at face value without

doing your own research. Determine what services the

business will provide, the cost of the service, and the amount

of time for relief. Never rely on their verbal promises. Get

your contract in writing, and have an attorney proofread your

contracts.

Companies that offer debt settlement are subject to strict regulations

when working with consumers in debt. The FTC’s Telemarketing Sales

Rule prevents them from charging a fee prior to settling or reducing a debt.

Avoid doing business with companies that guarantee that they will make your unsecured debt go away, or that they can stop all of the debt collection calls and lawsuits, or that they can pay off all of your unsecured debt for a fraction of the total amount. These sort of companies are implementing deceptive practices to take on your business.

Be on the lookout for any debt scams that offer a loan in exchange for a fee in advance. Under the FTC’s Telemarketing Sales Rule, a seller or telemarketer that guarantee or makes a representation that there is a strong chance you will obtain a loan - cannot ask for or accept - payment until you get approved for the loan.

Avoid offers from companies that claim to be able to repair your credit. There are many companies that appeal to people with poor credit history, which promise to clean their credit reports for a price, but everything these companies offer you can be done for free! You can do all of this yourself! Everyone has the right to correct inaccurate credit information within their file, but no one can remove accurate negative information surrounding your credit report. Your credit report will naturally improve when you repay your debts.

If you believe that a debt collector has been harassing you or trying to scam you into paying a debt, please do not hesitate to contact our office 1(833) 9-LAW-NOW for a free legal consultation. Even if we cannot assist you, we will endeavor our best to provide the right guidance for you, the consumer, to obtain the debt relief you are entitled to.

Know your rights! Do not let collection agencies take advantage of you!

The Debt Defense Team

www.TheDebtDefense.com