Many Debt Settlement Companies Are Engaging In Unethical Practices!

Bankruptcy Attorney

 

The current unethical practices that a number of debt settlement companies are engaging in has caused alarm among bankruptcy experts and many consumer advocates. The problem has reached such high levels that a consumer alert was recently released by the National Association of Consumer Bankruptcy Attorneys to warn the public about this issue.

Debt settlement companies advertise that they can help consumers who are struggling with high amounts of debt and facing financial difficulties. These consumers are told that the debt settlement company charges a nominal fee in most cases, but not all debt settlement companies are the same and many do not help the consumer but actually make things worse instead. These companies often result with the consumer owing even more debt and facing bigger financial devastation.

An increasing number of unethical and even illegitmate debt settlement companies are operating today. These should not be confused with legitimate debt settlement companies who actually help consumers work towards being debt free in an ethical and honest manner. Unethical companies in this industry charge exorbitant fees and may even advise their clients to quit making any creditor payments needed to protect the credit rating of the client.

According to the alert from the National Association of Consumer Bankruptcy Attorneys any consumer who is considering the use of debt settlement companies should be very cautious. A very large number of consumers are seeking debt relief, and the right debt settlement company can provide this relief in a legitimate and ethical manner. Some of the companies in this field are simply out to profit from the financial woes of clients and have no intention of actually helping the consumer.

The right debt relief company will make it easier for you to handle your debt obligations while also providing financial relief. An unethical business will only make your debts and financial problems larger and more difficult to resolve. The fees charged by unscrupulous debt settlement companies will quickly add up to a substantial amount, leaving you less money available to pay off creditors and settle your debts legitimately.

In some cases unethical debt settlement businesses have the eventual goal of stopping payments to creditors completely, while racking up the interest and penalties that the consumer owes the business instead. The National Association of Consumer Bankruptcy Attorneys has become alarmed at the sheer number of unethical and illegitimate debt relief and debt settlement companies that are compounding the extensive consumer debt problem facing the nation.

Any debt settlement that makes claims which seem unrealistic, excessive, or too good to be true should be avoided according to the National Association of Consumer Bankruptcy Attorneys. Any of these businesses which make claims about large debt discounts, involve the use of monthly fees, or expect a consumer to pay any of the supposed savings that are obtained should be avoided completely because these are probably unethical debt settlement companies that operate on the fringes of consumer protection and debt laws.

Be very careful when choosing a debt settlement company, and closely examine all the fees and costs associated with the company. Never stop making any agreed upon payments to your creditors even if the company advises you to take this step. This will help protect you and ensure that you choose an ethical debt settlement company that meets your debt relief needs at a reasonable cost.

 

 

 

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