National Debt Relief Releases Tips on How to Avoid Scammers and Condemns Those Who Prey on Desperate Consumers with Student Loans
Los Angeles-Long Beach, CA (PRWEB) July 06, 2013 -- The leading debt settlement company published a timely article discussing how consumers can stay away from scammers and thus protect their money for debt payments. Their article was published on June 18 which was only a day before the National Consumer Law Center (NCLC) released a report about the scammers plaguing the student debt relief industry.
The NCLC released “Desperate Borrowers and the Growing Student Loan ‘Debt Relief’ Industry” on June 19 and it reported how consumers are being abused by malicious companies. The debt relief industry recently emerged in response to the growing student debt crisis but a lot of those offering help are found to be practicing illegitimate acts. The NCLC report “documents multiple problems as well as potential violation of the consumer federal and state laws” by the companies offering student debt relief. It was found that student loan debt relief companies:
1. Claim some federal government programs as their own.
2. Charge high upfront fees, high service fees ($20-$50 a month) and does not disclose all fees.
3. Provide inaccurate information about a lot of critical topics about student debt.
4. Focus on sales and not debt counseling.
5. Request powers of attorney from clients.
6. Sell one-size fits all approach - which National Debt Relief believes is impossible to do across all types of debt.
What is bothersome here is the fact that these questionable debt relief companies are offering paid services that consumers can actually get for free from the federal government. The NCLC released this report as a warning to consumers to be very careful when they look for debt relief options for their student debt.
In the same way, National Debt Relief released a warning to their readers about debt settlement scammers. Recently hailed as the number one debt settlement company by TopTenReviews.com, they have proven themselves to be an authority in matters of debt relief issues - especially debt settlement.
The article released is entitled “How To Avoid Debt Settlement Scam,” and it discusses tips to help consumers stay away from abusive companies. The company describes debt settlement as a program that involves negotiations with the creditor to allow consumers to pay pennies on every dollar of their debt. Usually, a professional is needed but consumers can also do this on their own. The article cites the requirements that will tell a consumer if they are a good candidate for debt settlement.
National Debt Relief mentions that if the consumer picks the right company, it will serve them well. But they also warn of scammers in the debt relief industry. In fact, the article states that the CFPB or Consumer Financial Protection Bureau are closely scrutinizing companies to make sure that they will not prey on desperate consumers. The article cited debt relief companies that are currently on the watch list of the bureau.
The BBB (Better Business Bureau) accredited company gave the following tips to help consumers avoid scammers.
1. Check with the Better Business Bureau if the company is accredited. If they are, check their rating.
2. Look at reviews about the company.
3. Do not be easily swayed by “too-good-to-be-true” promises.
4. Never go for a company that requests for upfront fees.
5. Always follow up and keep track of what the company does for your debts.
To read the whole article, visit the National Debt Relief website.
National Debt Relief is a member of the AFCC (American Fair Credit Council) and the US Chamber of Commerce. They primarily offer debt settlement but also advocates for debt, debt relief and personal finance education.
Paul Ritz, National Debt Relief, http://www.nationaldebtrelief.com/, 1-888-703-4948, [email protected]
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