Debt consolidation companies, debt management, creditors, consumer protection agency

Debt Consolidation Companies

You hear about debt consolidation companies from over the place. Many people say stay away from these types of companies. Some of these companies have renamed themselves because they have received so much bad press. Names that have been used are debt negotiation and debt settlement companies.

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Debt consolidation companies are being sued by many attorney generals and FTC. The IRS is even investigating their non profit status. If you really want to use one of these types of companies I would suggest for you to check out your local consumer protection agency. You should also call the Better Business Bureau in the city the company is located in. If you don't investigate you might get involved with a company that will scam you over. For example one company ended up in trouble with the Federal Trade Commission. This particular company said that they were a non profit organization they could help consumers get out of debt without an up front fee. Instead of teaching the consumer how to manage their money to avoid future customers in debt management plans. When this happened each customer had to pay a monthly fee. This fee was supposed to go toward the customers creditors. Soon there after, the FTC charged this company with deceptive practices. Finally the company did shut down. This is why I suggest for everyone to investigate the company you want to do business with. It might make it a little inconvenient for you to do this, but you will be thankful in the long run.

Honestly I personally wouldn't use anyone of these companies. It sounds to fishy for me. I would rather call each creditor myself and try to work out a plan. At least I know if I know I do it this way, and I won't be getting scammed. I hope you decide to do it this way too.