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The Bad Side to Debt Consolidation Companies
It is hard to avoid noticing the massive growth that there have
been in debt consolidation companies over the past few years.
Initially, debt consolidation companies were some of the biggest
advertisers on the internet and now they have more TV
commercials than some of the most well-known brands. However, a
number of these debt consolidation companies are being sued by
numerous attorney generals, the FTC and the IRS over their
supposed 'non-profit' status.
One of the worst debt consolidation companies has actually had a
federal lawsuit filed against it and the FTC and five individual
states have filed separate lawsuits against the company. This
company declared Chapter 11 bankruptcy but the reality is that
they have not gone out of business themselves, they have simply
changed into so many other companies that they are most likely
around in some form.
Interestingly, many companies do not call themselves 'debt
consolidation companies' anymore because of the bad press that
all of the legal action against this first company generated.
You may hear of 'debt negotiation' companies or 'debt
settlement' companies who are basically 'debt consolidation
companies' who are using illegal tactics and should be avoided.
You can check out any debt consolidation companies, or any other
company for that matter, with your local consumer protection
agency and the Better Business Bureau in the company's location.
Be aware that debt consolidation companies with a good rating
may
mean absolutely nothing. In fact, over 75% of the complaints
received by the Better Business Bureau do not count against the
company's rating if the complaint is considered resolved. The
Better Business Bureau has no authority to investigate
complaints against debt consolidation companies, nor resolve
them.
One particular word of advice is to avoid any debt consolidation
companies who have a registered address in Maryland or Florida.
This is because these two states do not regulate debt
consolidation companies. There are so many debt consolidation
companies available that if you really feel that this is the
best course of action for you then avoiding those in Maryland or
Florida should be simple and will save you the worry of dealing
with a disreputable organisation.
You can find a number of websites that offer a customer review
section for debt consolidation companies. This is worth checking
out to see if customers of any of the debt consolidation
companies that you are considering signing up with have had
problems dealing with them in the past.
Take a view on Bad Side to Debt Consolidation
Companies here.
About the author:
Angela Rogers is the editor for http://www.debt-helper.info -
Take a view on online debt consolidation services..
Written By: Angela Rogers