Anyone who has searched for ‘debt settlement’ on the Internet knows that a debtor in today’s world is not without options. Shifting through the hundreds of pages of debt relief programs all claiming to be the right solution is a daunting task, especially for those that have no previous experience with the debt industry or those that didn’t know it was an industry in the first place.
It is a bigger operation than most think, and not many are in it for the love of settlement. Debt relief programs can be an easy way to get cash out of desperate consumers, willing to believe any marketing ploy for the promise of debt relief.
“Consumers have to be super cautious about the financial decisions they make, and unfortunately, there are more scams out there than ever before,” said Dominick Yost, vice president of Superior Debt Relief Services, a debt settlement program.
Luckily there are now more advanced ways to find a reputable debt settlement company than simply playing ‘eeny, meeny, miny, moe.’ Using FTC regulations, Better Business Bureau recommendations and the advice below, debtors can separate the debt settlers from the debt scammers and find a company that fights for them, not their fee.
When choosing your settlement option, avoid any debt relief company with these traits:
1. They charge advances fees: This is not just poor business practice—it’s illegal. Following an FTC ruling in October 2010, debt settlement companies have been banned from accepting any compensation until they’ve actually saved their client money. Despite the ruling, a few companies may still try to get around this. Avoid them.
2. Their program lasts longer than three years: For most accounts, the amount of interest accrued over more than three years will negate any amount a settlement company is able to save their clients. Plus, they’ll tack on their own fees.
3. They don’t have a good rating with the Better Business Bureau: The BBB rates companies based on customer satisfaction, solid business models and ethical practices. Any debt settlement company that hasn’t met the BBB’s standards probably doesn’t meet their customer’s standards either.
4. They’re hard to get a hold of or don’t have a physical address: From countless hours on the phone negotiating, receiving and sending mail, and coordinating with clients, most every debt settlement company needs a physical place to work. Unless, of course, they’re not actually working. Even the most elaborate web sites can be a front for a man-in-a-basement scam. Don’t be the one paying for his video games.
5. They won’t talk taxes or credit score: Refusal to acknowledge that debt settlement can lower credit scores and has the possibility of tax consequences or any claim that the program is completely painless should leave prospective clients wary. Debt settlement is a get-out-of-debt tool, not a panacea for all finance problems. They should be able to explain possible outcomes and exactly how the company deals with them.
6. They’re young: If a company in this industry has less than 10 years under their belt, it’s likely they’re still working out growing pains and don’t have the established relationships required for good settlements
“When you speak with someone, trust your gut. Was the person you spoke with knowledgeable and helpful, or did they spend their time trying to convince you of something?” Yost asks. “It is always best to select a company that makes the journey with you and charges you fees based off their success in resolving your accounts, not just because you have been in their program a certain amount of time.”
About Superior Debt Relief Services: Established in 1998, Superior Debt Services is a debt relief company committed to ethically helping consumers lower their credit card debt while encouraging them to develop healthy financial habits. Superior is a reputable company devoted to fighting for the consumer and the regulation of the debt settlement industry by lobbying Congress and working with the FTC for consumer advocacy legislation.
ON THE WEB
http://www.superiordebtrelief.com/
MEDIA CONTACT
Maggie Shafer
(888) 366-3414
SOURCE: Superior Debt Relief Services
Print Friendly
This press release is distributed by PR NewsChannel. Your News. Everywhere.
