In times of economic stress, it is common for consumers to seek help from companies that present themselves as debt relief providers. Debt settlement companies can be a considerable risk to consumers, because they generally require a sizeable payment upfront. Debt settlement scam companies may promise a money-back guarantee, but getting a refund can be difficult, if not impossible. Also, they do what you can do on your own by contacting your creditors to see if they will lower your interest rate or make some other money-saving concession.
Debt Settlement Scam Practices
One trick that the loan modification and debt settlement scam companies use is to require the consumer to stop sending payments to their credit card and mortgage companies. They are likely to insist that their victim/clients send the money directly to them. They assure their clients with the false promise that they will make payments and negotiate directly with the credit card and mortgage companies.
Rarely do these companies actually succeed in settling your debts, if they even try to.
The more likely outcome will be your money paid to a debt settlement company that is unable to make the settlements in the first place. This compounded with likelihood being sued by one or more of your creditors. The ordinary outcome is merely bad credit longer at a higher price plus a lawsuit.
Consumer Debt Protection: Debt Adjusting Act
Washington law places very strict (but easy to follow) requirements on how this money is distributed, and many (if not most) debt settlement and loan modifications providers fail to follow these simple requirements. Making matters far worse for people who fall victim to these consumer debt scams, many of these companies fail to do anything to help the consumer—they simply pocket the money as fees and claim nothing could be done to help the consumer.
Luckily for residents of Washington, the Debt Adjusting Act empowers victims of the debt settlement and loan modification scams to obtain a total refund of all fees (plus attorney fees) paid to companies who violate the Debt Adjusting Act. This is a powerful statute that may help you fight back if you fell victim to these scams.
Consumer Debt Attorney Experience
Our experience is that most companies are willing to settle the claim if contacted by an attorney. If the services involved an attorney or other licensed individual then there is considerable leverage in forcing a settlement. Complaints to licensing bodies, particularly bar associations that also have client reimbursement funds, can be very effective and the licensed person knows this. They are often willing to pay rather than deal with a complaint.
Have you have been ripped off by someone you paid for credit card debt settlement, debt negotiation services, or legal services?
We Can Help Get Your Money Back.
We will take these cases on a contingency basis, so that you do not pay any attorney fees unless we get your money back.
We offer a free consultation with our consumer debt attorneys.
If you have questions, contact us today. We are waiting to assist you.