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Debt Settlement and Debt Negotiation Services a Growing Problem in the Czech Republic

Thanks to an awesome tipster (send in your tips here) we have the story below. Keep the tips coming.

Czech Radio is reporting that debt settlement services in the Czech Republic have become a big enough problem that People in Need is speaking out against them to help protect consumers.

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


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Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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