To further explore an issue presented in a prior blog, I want to examine the situation with debt-relief companies more closely in the next few days. As most of us our well aware, millions of people are overcome with debt due to the economic crisis of the past few years.  When someone is overburdened by debt it is a time of great vulnerability. It is at these moments that certain types of businesses prey on people. You all have seen the all too seductive ads, such as: “Be debt free in as little as 24-48 months!”or “Cut debt 60% -set your own payment schedule.” They all make it seem easy to manage the major source of your economic stress.  

Unfortunately, many of these debt-relief agencies are guilty of fraudulent practices. Linda Sherry of Consumer Action reminds us that, “These are for-profit companies and they are looking to profit off your vulnerability.”  And Susan Grant, the director of Consumer Protection at the Consumer Federation of America agrees with this assessment when she states that “Desperate consumers are paying thousands of dollars with no guarantee that even one penny of their debts will ever be settled.”  To make the matter even worse, some people who sign up with debt-relief or debt-settlement companies end up with more debt than when they started, according to the Federal Trade Commission. “To be sure, some debt relief services do help consumers reduce their debt loads,” FTC Commissioner Julie Brill reported to Congress, April of this year. “In too many instances, however, consumers pay hundreds or thousands of dollars for these services but get nothing in return.”

I will continue to explore debt relief tomorrow. In the meantime, if you have questions you need answered or are considering filing bankruptcy please feel free to contact me. Kevin D. Heupel, Colorado Bankruptcy lawyer, 303-955-7570, COBankruptcyHelpEmail, free-consultation form. I will answer your questions without obligation. Remember, I am here to help.