Credit Settlement Companies Offer No Help to Consumers with High Debt
Credit consolidation companies promise to renegotiate the outstanding balances of your debt by ?working with creditors? which will reduce your monthly payment. This seems like it would be a boon for consumers who have over extended themselves with credit card and other debt, but more often than not, consumers who try to use these debt-consolidation services end up in a much worse situation than they were in previously.
Credit-consolidation: Fraud or Ineffective?
The credit consolidation company tells the consumer to stop making payments on their outstanding debt, and instead, put that money in an account held by the credit consolidator. The idea is that the credit card companies are brought to the table to negotiate when all payments cease, and the consumer is eventually relieved of a portion of the owed debt. As a matter of course, when the consumer stops paying off the debt, telephone calls from collections begin to ring with ever increasing frequency, and the consumer?s credit score plummets. Frequently, the consumer cannot continue to wait for a settlement to happen after not paying toward their debt and greatly increasing the amount they owe. In the end, the credit consolidation companies claim a percentage of the money put into the ?special account? as fees and the consumer is left with a greater amount of money owed and ruined credit.
Contact Us
Seeger Weiss LLP is investigating claims of credit consolidation companies ruining consumers? credit and failing to reduce their debt for a class action lawsuit. If you or someone you know has been put in a worse financial position because of a credit-consolidation company and you would like to speak with an attorney regarding your potential rights please fill out the contact form below, or call us toll-free. Attorney consultations incur no obligation on your part. All initial consultations are free of charge and do not create an attorney-client relationship. Seeger Weiss LLP has office locations in New York, New Jersey, Pennsylvania, and Oklahoma and its attorneys are available to practice in courts throughout the country.
Link To Lawyer Seek's Credit Consolidation Failures Content:
<a href='http://www.lawyerseek.com/Practice/Consumer-Protection-C21/Credit-Consolidation-Failures-P203/'>Credit Consolidation Failures: Lawyer Seek</a> |
|
