Well, just when you thought it was safe to to go back into the water, we find this. Article From NY One.
I had to read the article 4 times to make sure I was not missing something. or was not suddenly transported into a time machine to early 2010. So, just what is wrong with the article. It is very misleading, and a blanket indictment against an entire industry. Have these guys been made aware that the Debt Settlements industry received a complete revamping of regulations by the FTC in October of 2011?
Charging Upfront fees for settlement services, before the settlement has been achieved are illegal. What this means is that the settlement companies or settlement attorney's must basically work for free, until they achieve success. No success, no fee!
Next, It is illegal in most states for anyone to advise a consumer to stop paying his or her creditors, if they still owe money to them.
Any funds placed into a 3rd party escrow account must be under the control of the consumer, not the company.
The article goes on to recommend to the consumer that they seek help from a non-profit company only. Nothing against any non profits. However, if your debts are in collection, the non-profit cannot guarantee you that their program will stop a creditor from suing you to try to get a judgement, anyway, and they will tell you as much themselves, and, chances are, that you will be paying a high monthly payment going this wrought, and wasn't that the nature of the original problem?
The authors of this article would have been serving you, the consumer, a much greater good, by informing you about all the things I just pointed out to you. The article does not even allow for comments, and we would have most certainly commented.
No one should ever undertake any type of personal debt relief strategy of any kind without due consideration and good accurate counseling.
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Written By:
American Debt Enders
Help@americandebtenders.com
877-766-2465
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