Many people who struggle in their finances chose to get help from debt relief services. There are a lot of pitfalls in hiring a debt relief company because of the scams around. The following are 4 things to look out for when choosing a debt relief company.
1. Avoid Company that Ask for Upfront Fee
You must avoid companies that demand upfront fees. A good company will not ask you to pay any fee prior to the debt settlement process. Many companies like to advertise that they are a government approved organization by claiming that they are an Attorney based debt settlement company. They made this claim so that they can charge you expensive fee. There is no need to hire an attorney to settle the debt. You also should not have to pay for any monthly fee or maintenance fee.
2. Avoid Company that Claims to Erase All Negative Record
Another red flag is a debt relief company that claim that they can erase all the negative records on your credit report. It is an illegal practice to remove the accurate information on your credit report. You can only dispute the information that is on your report by providing proof that the item is illegitimate.
3. BBB Accreditation
The debt relief company you hire must be accredited with BBB (Better Business Bureau). You can visit the Better Business Bureau website to do a research and find out whether it meets all their requirements. At the BBB website, you will be able to read complaints by other consumers. You can also find lawsuits filed by other consumer on the debt settlement company at the BBB website. The BBB gives a rating of A – F for debt relief companies. Another place to check for consumer complaints is the website of the State Attorney General.
4. Affiliation with Reputable Agencies
The debt settlement company must be licensed and registered. You can check to see if they are registered with the AICCC or NFCC. Most reputable companies are registered with them. You can read reviews to learn about the feedback from other consumers. You should avoid companies that advice you not to use accredited counselors for the debt settlement.
In conclusion, you must never be pressured into signing up with a debt settlement company. Spending time to do research will prevent you from falling prey into scam services.