So this press release comes across my desk.
Churchill Debt Settlement is Compliant with FTC Regulations
Churchill Debt Settlement is committed to the ethical resolution of unsecured credit card accounts by 60%. Churchill is fully FTC compliant as well as registered with the International Association of Professional Debt Arbitrators.
New York, NY, December 02, 2010 –(PR.com)– President of Churchill Debt Settlement, Brian J. Robinson says, “Credit Card practices in the United States are set up to deceive consumers.” On this premise, it is Churchill’s mission to ethically relieve consumers of credit card and other unsecured debt. Churchill Debt Settlement operates in a straight forward manner to alleviate the financial pressure forced on consumers through the questionable and deliberately misleading practices of bank lending.
Churchill Debt Settlement is a remarkable innovator at the forefront of debt settlement and debt control. In offering debt settlement, Churchill provides an intelligent option to help consumers avoid bankruptcy and secure their financial future. A secure future opens the door for college funds, a safe retirement, and most importantly freedom. Churchill can help you take control of your financial future. Call today for a free consultation.
Thomas Rosch, Commissioner of the Federal Trade Commission, recognized recently that “debt settlement is a viable and needed service for consumers.”
MEMBER: IAPDA – Source
My very favorite line from the release has to be “Churchill Debt Settlement is committed to the ethical resolution of unsecured credit card accounts by 60%.”
By that very statement Churchill Debt Settlement is not compliant with FTC regulations. The first line!
And then there is the issue of taking the statement of Commissioner Rosch out of context to promote their services, failing to mention the widespread problems the FTC found with many debt settlement players.
Too bad Churchill Debt Settlement didn’t read this before they put out their release.
So of course I had to go look at their site after than bonehead move they pulled. I seriously doubt that the FTC will find their statement about being a leader in credit card debt relief is true either.
And then there is this issue of what I would call, being untruthful on their FAQ page about bankruptcy. They make negative statements about bankruptcy but do not compare them to the solution they are offering. Apparently trying to talk consumers out of bankruptcy and into their program.
Should I just file bankruptcy:
The negative effect of bankruptcy will stay with you for years to come. Before making any decisions, make sure to be educated in all of them. Here are some of the facts about bankruptcy:
- Bankruptcy can cost up to $2,500 to file plus additional attorney’s fees. [How much does their service cost?]
- Chapter 13 has a 5% trustee fee for the administration. [Which is paid out of the funds the consumer can afford to pay and not on top of like a credit card debt relief program.]
- Chapter 13 bankruptcy the court decides what you can pay. [Actually the bankruptcy laws determine what is reasonable and affordable after taking into account exemptions and deductions.]
- Bankruptcy may hurt your chances when applying for a job in security or financial services [In very limited situations. But debt settlement can do the very same thing. In fact the U.S. military says bankruptcy will not hurt your chances to get a security clearance while being behind on your debts like in a debt settlement program can.]
- Bankruptcy will likely result in higher interest rates on future loans and credit. [So will their program.]
- Bankruptcy carries a negative stigma, emotional stress, and other burdens. [So does being sued, wage garnishments, and the poor credit that can result from their program.]
- Chapter 7 bankruptcy is more difficult to qualify for since the change in bankrupcy laws in 2005. [Not true. More than 70% of bankruptcy filings are Chapter 7.]
- Chapter 13 bankruptcy usually requires the payback of all of your debt according to your ability to pay as determined by the bankruptcy court and a judge. [Not true. Chapter 13 usually does NOT require that.] – Source
And then a quick check of New York to see if they were a licensed budget planner to offer services, legally, and guess what, they are not listed as a licensed agency. – Source. [See comments below. After investigation, they are not required to be licensed. Would have been nice if they could have stated so.]
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