Debt
settlement companies promise to «reduce your debts by 70 %».
Now, you can understand why many debt
settlement companies promise to settle your debts for 10 % to 60 % of the original debt amount.
Some debt
settlement companies promise more than they deliver.
A debt
settlement company promises to reduce your debt by 50 % or more, but there's no guarantee of that rate of success and the process usually takes three to four years, if the card company will even deal with debt settlement companies.
Not exact matches
AG Eric Schneiderman announced a $ 6.5 million
settlement with the owner of the Manhattan Club in regards to a lawsuit by timeshare owners over repeated false
promises by the
company.
The
settlement was in regards to a lawsuit by timeshare owners over repeated false
promises by the
company.
Some
companies offering debt
settlement programs may not deliver on their
promises, like their «guarantees» to settle all your credit card debts for 30 to 60 percent of the amount you owe.
Some debt
settlement companies may charge high fees for their services or
promise things they can not keep.
Unlike debt
settlement firms, debt negotiation
companies don't
promise to help you pay off your debts completely.
The type of services covered under the new rules are
companies that
promise to 1) work with a creditor to settle the debt for a lesser amount than is owed, (debt
settlement companies) 2) work with all of a consumer's unsecured creditors to promulgate a debt management plan to vary the terms of all such debts, under a debt management plan (debt management
companies) and 3) negotiate with a creditor to lower the interest rate of the outstanding debt and / or waiver of certain debt fees, such as late fees or over the limit fees (debt negotiation
companies).
There is no set formula, and don't let wishful thinking make you believe
promises made by debt
settlement companies and others feeding off your sense of fear or guilt.
Illinois Attorney General Lisa Madigan sued First American Tax Defense and Broadsword Student Advantage, two debt
settlement companies that allegedly charged exorbitant upfront fees and
promised bogus services to borrowers seeking alternative ways to repay student loan debt.
Many consumers still find themselves being charged late fees or having their missed payments and outstanding balances reported to the credit bureaus, even after a debt
settlement company has
promised to take care of business.
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.
Finding a debt
settlement company that can deliver on its
promises is one of the biggest barriers to a comprehensive debt
settlement.
Additionally, some debt
settlement companies deceive consumers by making
promises they do not keep and engaging in other illegal conduct (like charging fees before obtaining any
settlements, in violation of the TSR).
Debt
settlement / negotiation
companies promise you quick results to get out of debt.
Nationwide Asset Services, a
company under investigation by the New York Attorney General, has disclosed that while Nationwide Asset Services
promised consumers debt reductions of between 25 to 45 percent, in fact only 64 customers out of 1,981 actually completed the debt
settlement plan.
Unfortunately, some of the less - than - ethical debt
settlement companies have no problem lying to consumers and taking money without delivering any
promised results.
Debt
settlement / negotiation
companies often
promise you that they can cut your bills in half or more.
Often the
company actually handling your debt
settlement has no idea what
promises have been made to you — nor any obligation to meet them.
Debt
settlement companies, in particular, seek to attract consumers by
promising to reduce consumers» debts by 50 % or more, stop harassing collection calls from debt collectors, and prevent lawsuits.
Mary thought she was doing the right thing by hiring a debt
settlement company, which
promised to reduce her bills and help her get out of debt.
Consumer affairs says fewer than 1 percent of all debt -
settlement companies deliver what they
promise.
The defendants tout their services as universally better than credit counseling and bankruptcy protection, and they allegedly
promise consumers that they will contact all the consumers credit card
companies and negotiate substantially reduced
settlements of the outstanding credit card balances.
No debt
settlement company can realistically
promise to eliminate all collection calls.
Without the
promise of confidentiality,
companies may worry that if the story gets out that they paid money to a former employee, the public will assume the employer did something wrong; they may also worry that it will create a slippery slope of ever increasing demands for
settlement funds when they are required to terminate other employees» employment.
Dutch law certainly holds
promise for pan-European or global class
settlements, and Canada will continue to attract global class actions against
companies with strong Canadian ties.
NY AG Andrew Cuomo is suing two debt
settlement companies that «preyed on consumers» who couldn't pay their bills,
promising to dramatically reduce their debts for a fee and then failing to deliver.