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Watch Out for Debt Settlement Scams

Posted By admin || 20-Aug-2009

Given today's economy, many debt settlement companies are waiting to take advantage of you.

An article in the USA Today warns that people should make sure they are not being taken advantage of by debt settlement companies.  Many people are struggling financially right now, and there are companies and individuals trying to profit from others misfortunes.

A prime example of this came to the forefront in Florida last week.  Luckily for many, Chase Card Services agreed to forgive the debts of 13,000 people who were taken advantage of by a Florida based debt-settlement organization.  The claim against the organization said that they agreed to reduce debts substantially and they told their customers to quit sending in payments to their credit card companies.  The debt settlement agency then made no payments to the credit card companies.  As a result thousands of people defaulted on their bills.

A few things the article warns you to look out for from debt settlement companies are if the company says it can eliminate all of your debts, protect you from lawsuits, or keep your credit report from being affected.  Also, if the company charges a large upfront fee, you need to stay away.

The article then goes on to say that bankruptcy can be better for you than debt settlement.  "Still, bankruptcy offers more legal protection than debt settlement: While you're filing for bankruptcy, your creditors can't file lawsuits or harass you.  'I would never suggest someone go into debt settlement unless they've met with an attorney, and the attorney concurs that bankruptcy may not be the best option.'"

It is easy to see that financial experts agree that bankruptcy can be the best option for you.  If you would like to find out more, please contact a Dallas-Fort Worth attorney today.

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