Are all debt resolution companies a scam?

So are you saying ALL debt resolution companies are a scam? I really need this service so I dont have to file BK.

Sean

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  • Joann

    Have you tried a credit counseling service and possibly a debt management plan (DMP)?

  • Cody

    Hi.  I did call one of those companies and was informed that I had to stop paying my monthly bill.  I thought that this was too dangerous so I decided against it.  Good luck.

  • Cldnygln

    I did call one of these companies.  They told me that I would have to stop paying my monthly bill.  I felt that this was too risky and decided against it.

    GC 

  • Willie

    The more I learn about debt releif companies the less relief I have.

    • http://GetOutOfDebt.org Steve Rhode

      LOL.

    • http://www.facebook.com/people/Joshua-Lanham/510615720 Joshua Lanham

      Lol I feel the same way.  I am talking to Care One and about to talk to freedom and CCC Indy for my CC debt.

      • paul

        Hi Joshua ,
        The Companies you are talking to are not in Indiana , you need a to call Mystar Financial , http://www.mystarcredit.com , honest , accredited , BBB

      • http://GetOutOfDebt.org Steve Rhode

        Paul,

        I don’t have any problem with promoting your own company. I can see that from your email address. But please let people know you work for the company you are promoting. maybe even ask them to contact you directly.

        Be open about it, please. Fair enough?

  • Hayes Heather

    I’ve been asking the samd question lately. I dent know who to trust so, I did my research and also check the companies BBB score. I chose one with no complaints and a high score. So far so good

  • Msullivan

    Sean,

    it does sound like we’re giving you the run around because there are all kinds of debt relief options and every case requires a personalized decision. Sometimes bankruptcy is the best option but I would never suggest starting with a bankruptcy attorney because they are certainly biased towards bankruptcy and debt settlement companies are biased towards debt settlement. That doesn’t mean any of them are scammers (although some certainly are).

    I always suggest starting with credit counseling because it is the lowest risk option, but I am biased too (my salary comes from a credit counseling agency). I would suggest checking out credit counseling agencies with the Better Business Bureau and talking with the two highest rated. If either one gives you no options other than a debt management plan you can be sure that you have a bad counselor. Listen to the options presented by good counselors, which should include self-management and bankruptcy and then decide on your plan of action.

    After you decide to take a particular action, check out the providers again at the Better Business Bureau and select one after at least two interviews. Remember that this is your life and your finances and you need to be in charge.

    Good Luck1

    • http://www.consumerrecoverynetwork.com/ Michael

      Hi Msullivan,

      You have left out settlement in your comment: “Listen to the options presented by good counselors, which should include
      self-management and bankruptcy and then decide on your plan of action.”

      Was that purposeful? If it was, what is your companies policy about discussing settlement with consumers?

      Do you work at a nonprofit CCA? Do you, in your personal capacity, believe nonprofits fall short of their tax status mandate to educate consumers when they fail to truly educate consumers about all of their options?

      Why is speaking to a CCA counselor the lowest risk option?
      There is ample evidence to show that CCA’s are a risk proposition.
      Please read both of these articles and share your thoughts:
      http://getoutofdebt.org/33888/debt-relief-options-for-consumers-is-the-delivery-system-broken
      http://getoutofdebt.org/33936/consumer-disclosures-in-debt-relief

      I invite anybody from a nonprofit CCA to answer. You can do so anonymously.

      Sean – sorry to hijack your thread a little here. It is an important discussion and the linked articles above are relevant to your question and concern.

    • http://GetOutOfDebt.org Steve Rhode

      I noticed you left out settlement as an option. Why?

      In certain situations it can be the more logical approach.

      I was going to let it pass but what does “lowest risk option” mean? How is it the lowest risk option?

    • http://northeast-properties.com Andy Faria

      I’m wondering why you would not suggest speaking with a bankruptcy attny first? 

      To me, speaking to a reputable bk attorney is the first logical step for someone that is overwhelmed by debt. Before entering any program that is going to cost someone even more money, shouldn’t they know exactly where they stand with bankruptcy? Do they qualify for a chapter 7? chapter 13? or do they not qualify at all? These questions need answers before an informed decision can be made, especially with the consequences of falling off either a DS or DMP plan.

      In my opinion, if someone has enough of a debt problem that they are seeking out the help of a third party, then the first place to start is a bk attny. Before spending money on an unnecessary “program”, they should first find out what the law allows them to do. If a Ch 13 is the only available option, then yes, that person may want look at debt settlement as a faster, more affordable alternative. If they qualify for a Ch 7, then maybe their best bet is to file, and tell their creditors to stick it.

  • Davidl

    oops  sorry about the previous comment. The correct url is http://www.americanfaircreditcouncil.org.    Dave

  • DavidL

    Hi Sean
      I would look for a company that has been around for at least 5 years and charges fees only upon settlement of each debt, as specified by the FTC ruling back in 2010. A good place to begin is http://www.americanfaircreditcounsel.org.  The members of this organization (which as formerly known as TASC) all charge fees only upon successful settlement of each debt.

    • http://GetOutOfDebt.org Steve Rhode

      Nice to see you join the conversation. Welcome.

  • http://DamonDay.com Damon Day

    Sean,
    If you can tell us a little more about your situation, we may be of more help to you. I understand wanting to avoid bankruptcy, but your situation may make a BK filing your best option. Certainly not all companies in the debt relief space are scams, but I would say there are many that are out there looking out for themselves and not their clients, and even more that might be trying to help, but are just plain not good at it.

  • Phillip phillips

    What is a good one to use then?

  • Phillip phillips

    What is a good one to use then?

  • http://www.consumerrecoverynetwork.com/ Michael

    Hi Sean,

    No. Not all debt relief companies offering to assist you in resolving debt is a scam.
    There are certainly pros and cons to each option and there are definitely companies and people who do a better job at assisting you reach your goals.

    You want to avoid bankruptcy. Most people do. A good company will evaluate your situation and if they can help you, will still recommend you learn more about each option, including bankruptcy by speaking with an attorney. 

  • http://www.consumerrecoverynetwork.com/ Michael

    Hi Sean,

    No. Not all debt relief companies offering to assist you in resolving debt is a scam.
    There are certainly pros and cons to each option and there are definitely companies and people who do a better job at assisting you reach your goals.

    You want to avoid bankruptcy. Most people do. A good company will evaluate your situation and if they can help you, will still recommend you learn more about each option, including bankruptcy by speaking with an attorney. 

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