Please fill out the form below for a Free no-obligation form for debt counseling
Javascript is disabled, Please enable it.
Damned by Debt Consolidation: Settlement Could be a Trap
Families struggling with overwhelming debt may be tempted to respond to advertisements that promise to settle your bills for pennies on the dollar, but beware. Using a debt settlement company could be a trap that leaves you older and further in debt.
This joint warning came from a coalition of much-lauded consumer groups–including Consumers Union , Consumer Action , the National Consumer Law Center and Consumer Federation of America . They issued a joint press release on Tuesday in an effort to slow the debt-settlement industry’s full-tilt push to create a system of state registration that would legitimize the business, which has also come under fire from the Federal Trade Commission .
Debt settlement companies typically suggest that consumers make monthly savings payments into a special account held by the settlement company. That money is supposed to pay off all of the consumer’s debts after the settlement company manages to negotiate a cut-rate pay-offs with each lender.
Damned by Debt Consolidation: Settlement Could be a Trap - CBS ...
Families struggling with overwhelming debt may be tempted to respond to advertisements that promise to settle your bills for pennies on the dollar, but beware. Using a debt settlement company could be a trap that leaves you older and further in debt.
This joint warning came from a coalition of much-lauded consumer groups–including Consumers Union , Consumer Action , the National Consumer Law Center and Consumer Federation of America . They issued a joint press release on Tuesday in an effort to slow the debt-settlement industry’s full-tilt push to create a system of state registration that would legitimize the business, which has also come under fire from the Federal Trade Commission .
Debt settlement companies typically suggest that consumers make monthly savings payments into a special account held by the settlement company. That money is supposed to pay off all of the consumer’s debts after the settlement company manages to negotiate a cut-rate pay-offs with each lender.
The problem, the consumer groups say, is that the industry is long on promises and short on results and guarantees. Meanwhile, they charge up-front fees that typically range from 14% to 20% of what you owe. Because those fees are taken out of your savings account regardless of whether the settlement company is able to negotiate away your debts–and because late fees and charges are often accumulating on your credit card bills while the settlement company sits on your payments–debt settlement can dramatically worsen the consumer’s economic woes.
“The industry’s own statistics show that debt settlement doesn’t eliminate all of the debt for most consumers,” said Gail Hillebrand, financial services campaign manager at Consumers Union in San Francisco. “But the full fee can be deducted from your savings even if you are still stuck with your debts.”
Debt Settlement Program San Francisco California
www.debtsettlementpros.org ; Dont sign up for Debt Settlement Programs in San Francisco. We can help with Debt Negotiation Settlement, Credit Card ...
Judge approves MediaNews parent's bankruptcy planSAN FRANCISCO — A bankruptcy judge approved Affiliated Media Inc.'s reorganization plan Thursday and freed the publisher of the San Jose Mercury News and 53 and more »
Available without charge are all manner of medical and dental screenings, as well as help with unemployment, food stamps, bankruptcy/debt consolidation,
completed the consolidation of the Hoefer electrophoresis administrative and marketing operations from San Francisco, California to the headquarters of and more »
Macy's Inc. Q4 2009 Earnings Call TranscriptBefore Florida was its own division and while we'd report and mention it, the stores hadn't with the buyer in Atlanta or the buyer in San Francisco, and more »