One of the first steps to investigating a debt settlement company’s legitimacy and reputation is performing an online search for the company’s name at the Better Business Bureau (BBB).
Are there any legit debt settlement companies?
Believe this: not only are there plenty of legitimate debt settlement providers out there, but there there are also a few trusty resources, like BestCompany.com, which ranks and reviews companies from best to worst. Currently, the top ranked companies in the debt settlement industry are Freedom Debt Relief and Pacific Debt Inc.
How can I verify whether a debt collector is legitimate?
How can I verify whether or not a debt collector is legitimate? Ask the caller for their name, company, street address, telephone number, and if your state licenses debt collectors, a professional license number. You can also refuse to discuss any debt until you get a written "validation notice."
Is your debt help company legit?
There are actually organizations in the financial industry that serve as watchdogs over debt help companies. It's true! If a company has accreditations from one or more of these organizations, you can feel confident that they're more than likely legitimate.
What does a debt settlement company do?
A proper debt settlement company will have professionals helping you through the arduous process of repairing your credit, but don't expect to crack open a cold one and relax in your chair while it happens.
Why Turn To Debt Settlement
Debtors turn to debt settlement companies because they offer to negotiate new terms with their creditors. Through these negotiations, debtors are promised to have their principal loan amount reduced by 30 to 70 percent.
Warning Signs of Potential Scams
Many of these debt settlement companies do legitimate business, and you can check with the Better Business Bureau to see their ratings and if they haveany complaintswhich were not resolved. However, there is a lot of money to be made in the debt settlement business and this attracts many who can and will take advantage of your situation.
Seek Legal Assistance
Because the potential to fall prey to a scam is so prevalent in this area, it is highly recommended that in addition to doing your homework you contact an attorney for legal support. Many of the legitimate debt settlement companies are also legal firms, or closely connected; nevertheless, the advice of a trusted attorney can prove to be invaluable.
How to report a debt collector?
Contact your creditor. If the debt is legitimate – but you think the collector may not be – contact your creditor about the calls. Share the information you have about the suspicious calls and find out who, if anyone, the creditor has authorized to collect the debt. Report the call.
How to refuse to discuss debt with debt collector?
Ask the caller for their name, company, street address, telephone number, and if your state licenses debt collectors, a professional license number. You can also refuse to discuss any debt until you get a written "validation notice." Do not give personal or financial information to the caller until you have confirmed it is a legitimate debt collector.
How to file a complaint with the CFPB?
If you're having trouble with debt collection, you can submit a complaint with the CFPB online or by calling (855) 411-CFPB (2372).
How to report suspicious caller?
Report the call. Submit a complaint with the CFPB or get in touch with your state Attorney General's office with information about suspicious callers.
When will debt collectors have to give notice of eviction moratorium?
All debt collectors must follow the Fair Debt Collection Practices Act (FDCPA). This can include lawyers who collect rent for landlords. Starting on May 3, 2021, a debt collector may be required to give you notice about the federal CDC eviction moratorium.
Can a debt collector threaten you?
The debt collector threatens you with criminal charges. Legitimate debt collectors should not claim that they'll have you arrested.
Can a debt collector give you a mailing address?
Ask for an explanation in writing before you pay. The debt collector refuses to give you a mailing address or phone number. The debt collector asks you for sensitive personal financial information. You should never provide anyone with your personal financial information unless you are sure they're legitimate.
How Debt Relief and Debt Settlement Work?
Debt Relief and Debt Settlement is a negotiated agreement by which a creditor accepts less than the total amount owed to legally satisfy a debt.
Schedule Your Free Debt Analysis
Potential clients speak with a certified debt specialist regarding their financial situation.
Enroll Into Our Debt Relief Program
Signed enrollment documents are processed and the new client receives a call from our team of dedicated account managers to welcome them to the program.
Negotiations & Settlement
Our talented negotiations team begins working on client accounts immediately.
Debts Resolved!
Your debts will be resolved in a few short years or even months so you can have a new beginning financially.
