4 Ways to Avoid Debt Settlement Fraud

One serious problem that a lot of desperate borrowers run into when seeking professional debt management or debt settlement currency options is the fraud companies out there. These businesses - and there are plenty - operate by taking advantage of the desperate by promising grand results and delivering little or nothing at all, all while taking your money and probably worsening your credit situation in the process. The problem with these businesses is the fly-by-night way of operating that they employ. Using smooth-talking, highly-trained salespersons, they promise their customers that their debt can be reduced to a mere fraction of what is currently owed - demand a good amount of money up front, and then do nothing of what they promised. The unsuspecting customer sends in their checks regularly, expecting that they are being disbursed to their lenders as agreed only to find out months later by an irate lender of theirs that no payment, or insufficient payments, or late payments have been received. The terms of any debt settlement arrangement (if any were made) are then called off, and the lender demands payment in full immediately. They become uncooperative and far less likely to work with the customer at that point, even if they begin to work with a different, legitimate debt settlement firm.

Warning Signs to Watch Out For:

There are typical methods or modus operandi that these tricky companies use to try to separate you from all of your debt settlement currency for their own profit or gain. Knowing these methods and keeping your eyes open for them is the best way of improving the odds that you won't fall prey to their tactics:

1. If it sounds too good to be true: This old saying is one place where your mother definitely knew what she was talking about: Fact: it is illegal to modify or change your credit report in any way to try to improve your credit score. Many of these fraudulent companies will either tell you that they have a "Secret method that the Credit Card companies don't want you to know about!, or they will tell you that they can make some adjustments to your credit report so that your debts disappear. Don't be taken in by such (illegal) claims. There are only two legal or legitimate ways to get rid of a debt that you owe to a creditor: either you pay it off, or you get them to agree (in writing) to settle the debt or write it off of your credit. Absolutely anything else stinks of fraud.
2. Non-Profit/Spiritual draws: Attempts to lure customers who are struggling with debt by posing as either a non-profit organization or one with a religious foundation. These companies use websites that end in .org and are cleverly thrown together with a sprinkling of a few lines of scripture related to debt, but they are, in actuality, no different than any other for-profit debt company out there that seeks to take advantage of your situation to turn a hefty profit. There are legitimate non-profit companies out there as well as religious ones, but research is needed to know which ones you can trust.
3. Expensive up-front payment requirements: According to federal law, it is illegal demand an upfront payment for debt services before any action has been performed. Most consumers do not realize this however and think nothing of handing over their hard-earned money as a fee based on a few promises or a fancy brochure or website.
4. Research is key: Knowing which company to take your debt settlement currency to requires research, or the trust of a site like this one, which has already researched and vetted many such companies before allowing them into the network. You can trust that the referrals you receive through this site are legitimate and are capable of helping you with your debt issues.