When you listen to the report below by Czech Radio what you will hear will sound very familiar to those of us in the United States.
Daniel Hůle from People in Need is quoted as saying “The companies offer the service of reducing debt or wiping it out altogether. But this is not true at all. They cannot get these debts forgiven. They take receipt of these debts but they cannot guarantee their clients anything. They just charge for their services.” Sound familiar?
The report goes on to state that what is most concerning are the large upfront fees these debt settlement companies are charging.
Hůle said “It has really surprised us how big this problem is. Half a year ago we were not even really aware of the risk that these debt resolution agencies presented. And now we are really afraid for the future because their growth has been enormous. According to some data at our disposition, and which is still not complete, we think that this growth has been fivefold in the last six months compared with the previous six months.”
I’ve reached out to contacts in the Czech Republic and hope to report further on this.
Source: Czech Radio
Debt Settlement and Debt Negotiation Services a Growing Problem in the Czech Republic by Steve Rhode
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