Debt settlement companies are presenting lies in their pitches to consumers. The Federal Trade Commission (FTC) has brought suit to over a dozen debt settlement companies for such lies that prey on consumers who are searching for answers with their burdened debt.
Debt settlement companies who claim to be non-profit but actually are using this ploy to get the customer to trust their company over another. Other companies omit discussing their fees all together or try to present it as no fee or low fees. The FTC mandates that debt companies explain their fees within their sales pitch. The fee explanatin presented may not be misleading to the consumer. The debt relief companies may not collect up front fees of any kind. The price you pay should be documented in the contract that you sign. Watch for companies who promise overly exaggerated savings from creditors. Make a few phone calls to different companies so you can see what is the norm for fees and savings. Don’t be pressured by the sales person. A company who forces you to give private information before they tell you about their program details is a company you may not want to trust.
You are not required to put all creditors into the program. If you want to keep a credit card out, you have the right to make that choice. Debt relief companies will not include all your debt, some creditors will not settle. A payday loan company is one of those creditors who will not settle. The original payday loan debt is too small to be lowered and still be profitable.
