More consumers are unhappy with debt settlement companies
Americans are being warned by the Better Business Bureau to beware of debt settlement companies that mislead consumers into believing they can get rid of or drastically reduce their credit card debt.
The number of Americans in debt soared during the economic downturn, and people are turning to settlement companies for help. More than 3,500 complaints have poured into the BBB about the predatory business practices of these organizations since the start of the financial meltdown. Consumers are paying hundreds of dollars in advance fees only to emerge deeper in debt.
President and CEO of the Council of Better Business Bureaus Stephen Cox said that “the debt settlement industry is flourishing and many families are being lured into believing that debt settlement is an easy fix and that their credit card debt will just disappear. The truth is that the process doesn’t work for many consumers, it has potentially serious negative consequences, and should primarily be used as a last ditch effort to stave off bankruptcy.”
Every state has filed complaints and the BBB isn’t the only one to hear about them. Frustrated consumers are also seeking help from their state Attorneys General.
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