The number of companies offering debt settlement or debt consolidation loans has been exploding. Abuse of customers did not go unnoticed, and consequently, the govt instituted more rules of the debt consolidation field. There are lots of frauds still out there, so customers would do well to check up on any company soliciting instant cash for companies from them.
Debt relief fraudulence for the Federal Trade Commission to crack down on
The Good Recession was an excellent opportunity for many businesses. Fast debt settlement and debt consolidation reduction loans started to be offered. All a customer had to do was hand over an upfront fee and make monthly payments, and their debt would be gone before they knew it. Many corporations ended up not really giving the companies although they'd still take the money. The Federal Trade Commission started getting lots of grievances. This is why, in October, there were new guidelines added. Many attorneys general in states have been filing suits against these businesses since the abuse has continued. Many people end up falling into the scam of giving cash no in order to have debt settlement relief coming later. This is what the Financial Times explains. The money is taken by the intended "company." Nothing is ever settled though.
Make sure to not fall into debt settlement system traps
Sometimes things come along that seem too good to be true. It probably is then. If you plan on consolidating debt through an agency, you will find things to be careful of. You need to watch out for these things. If a business asks for an upfront fee for debt consolidation reduction, it’s probably a scam. Non-profit businesses exist out there. Debt management is something they help with. Always check out a potential debt settlement company with the Better Company Bureau and the National Association of Financial Advisors.
Things you can do in the interim
If you are trying to get rid of debt like personal loans, installment loans, or credit cards, you will find always things that can be done. Sometimes you can get a payday loans to help with some creative budgeting also.
Articles cited
FT
ft.com/cms/s/0/8b73b788-f5c6-11df-99d6-00144feab49a.html#axzz16857y44E
NAPFA
napfa.org/tips_tools/index.asp
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