The Bad Side to Debt Consolidation
Companies
by: Angela Rogers
It is hard to avoid noticing the massive growth that there have been in debt
consolidation companies over the past few years. Initially, debt consolidation
companies were some of the biggest advertisers on the internet and now they
have more TV commercials than some of the most well-known brands. However,
a number of these debt consolidation companies are being sued by numerous
attorney generals, the FTC and the IRS over their supposed 'non-profit' status.
One of the worst debt consolidation companies
has actually had a federal lawsuit filed against it and the FTC and five
individual states have filed separate lawsuits against the company. This
company declared Chapter 11 bankruptcy but the reality is that they have
not gone out of business themselves, they have simply changed into so many
other companies that they are most likely around in some form.
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Interestingly, many companies do not call themselves
'debt consolidation companies' anymore because of the bad press that all
of the legal action against this first company generated. You may hear of
'debt negotiation' companies or 'debt settlement' companies who are basically
'debt consolidation companies' who are using illegal tactics and should be
avoided.
You can check out any debt consolidation companies,
or any other company for that matter, with your local consumer protection
agency and the Better Business Bureau in the company's location. Be aware
that debt consolidation companies with a good rating may mean absolutely
nothing. In fact, over 75% of the complaints received by the Better Business
Bureau do not count against the company's rating if the complaint is considered
resolved. The Better Business Bureau has no authority to investigate complaints
against debt consolidation companies, nor resolve
them. |
One particular word of
advice is to avoid any debt consolidation companies who have a registered
address in Maryland or Florida. This is because these two states do not regulate
debt consolidation companies. There are so many debt consolidation companies
available that if you really feel that this is the best course of action
for you then avoiding those in Maryland or Florida should be simple and will
save you the worry of dealing with a disreputable organisation.
You can find a number of websites that offer
a customer review section for debt consolidation companies. This is worth
checking out to see if customers of any of the debt consolidation companies
that you are considering signing up with have had problems dealing with them
in the past.
Take a view on Bad Side to Debt Consolidation
Companies here -
http://www.debt-helper.info/debt-consolidation-companies-bad-side.htm |
About The Author
Angela Rogers is the editor for
http://www.debt-helper.info - Take a view on online debt consolidation services
- http://www.debt-helper.info/online-debt-consolidation.html.
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