Sentences with phrase «debt settlement companies claim»

Not exact matches

«Debt relief or settlement companies often claim that they can work with your creditors to reduce the amount of money you owe, but that doesn't necessarily mean your loan will settle,» said Dudum.

Many people have had to file for bankruptcy after hiring the services of unscrupulous companies claiming to offer debt settlement services.

The only companies still providing debt settlement services in Illinois are those claiming exemptions from the law, due to affiliations with attorneys or nonprofits.

The most prominent advertisement for one debt settlement company in particular claims, «Don't let the credit card companies fool you!

Jenna Keehnen, executive director for United States Organizations for Bankruptcy Alternatives (USOBA), a debt settlement and negotiation association, says that the USOBA has instituted a «zero tolerance policy» regarding these misleading companies and has reported more than 30 entities that make similar claims to the Texas Attorney General's Office.

Between upfront fees, high - pressure sales tactics, complicated contracts, and false claims, debt settlement companies should be approached with an extreme level of caution and skepticism.

Some companies claim to be debt settlement companies but are really just fronts for collecting debtors» money and putting it in the company operative's pockets.

The Attorney General's Consumer Fraud Bureau has recorded a sharp rise in consumer complaints against debt settlement companies that claim they can significantly reduce consumers» credit card debt and provide them with an alternative to bankruptcy protection.

The attraction of the ability to pay less than you owe and avoid bankruptcy is HUGE and allowed settlement companies to charge large fees and encouraged sales people to make claims and promises for debt settlement that could not be fulfilled.

Debt settlement companies do a lot of advertising and make claims about how easy it is to free yourself from a mountain of dDebt settlement companies do a lot of advertising and make claims about how easy it is to free yourself from a mountain of debtdebt.

GAO also found that some debt settlement companies provided fraudulent, deceptive, or questionable information to its fictitious consumers, such as claiming unusually high success rates for their programs — as high as 100 percent.

Debt settlement companies offer to help you settle all of your credit card debt, as well as other unsecured debt, with claims of up to 70 percent savings on the total amount of money you Debt settlement companies offer to help you settle all of your credit card debt, as well as other unsecured debt, with claims of up to 70 percent savings on the total amount of money you debt, as well as other unsecured debt, with claims of up to 70 percent savings on the total amount of money you debt, with claims of up to 70 percent savings on the total amount of money you owe.

Lastly, as with any issues related to debt settlement, it is important to be mindful that there may be some unscrupulous companies claiming they can settle your tax debt for pennies - on - the - dollar in exchange for a fee.

Although debt settlement companies market their services by touting their past successes, often their claims are unsubstantiated.

In the debt relief world debt settlement and credit counseling companies claim bankruptcy prevents people from getting jobs and that's why...

The primary consumer protection problem areas that have given rise to the States» actions include: (1) unsubstantiated claims of consumer savings; (2) deceptive representations about the length of time necessary to complete a debt relief program; (3) misleading or failing to adequately inform consumers that they will be subject to continued collection efforts, including lawsuits, and that their account balances will increase due to extended nonpayment under the program; (4) deceptive disparagement of consumer credit counseling; (5) deceptive disparagement of bankruptcy as an alternative for debtors; (6) lack of screening and analysis to determine suitability of debt relief programs for individual debtors; (7) the collection of substantial up - front fees so the debt relief company gains even if it fails to perform; (8) lack of transparency and information for consumers as to payment of fees, status of accounts, and communications with creditors; (9) significant delays in active negotiation or engagement with creditors, coupled with prohibitions on direct consumer communications with creditors; and (10), in the case of debt settlement companies, basing savings claims (and settlement fees) not on the original account balance, but on the inflated amount due (including late fees and default rates of interest) at the time of settlement.

Some debt settlement companies are attempting to circumvent the law by claiming a «legal model» exemption.

For example, in one recent case it was alleged that over 80 % of the debts enrolled with a debt settlement company were not settled.7 In another action, a Frederick, Maryland debt settlement company could not substantiate its claim that it could reduce consumers» debts by as much as 70 %.

Debt settlement companies feed off this fear by placing ads claiming to be able to settle their debts for pennies on the dollar, while avoiding bankruptcy.

NoteWorld, for its part, stonewalls customers and refuses to refund illegal fees, hiding behind false claims that it «only» provides «payment processing» services; that it is «not a debt settlement company»; and that it is wholly «independent» from the vanishing Front DSCs.

NoteWorld's claim that it is not a debt settlement or «debt adjusting» company is particularly outrageous, since it clearly meets the statutory definition for such companies.

If enacted, this legislation will help address the abuses that have riddled the debt settlement industry and protect consumers from deceptive advertising, misleading claims, and excessive fees charged by a number of these companies.