In this blog I want to explore the basic reality regarding debt-relief companies. In an attempt to do just that the Executive Director of the Maryland Consumer Rights Coalition, Marceline White, went shopping undercover at a few online debt-relief companies. She reports being disturbed by what she discovered. She found it to be obvious that the individuals who identified themselves as financial counselors were no more than salespeople whose only interest was in getting her to sign up with the company immediately.

She stated that “when you ask them direct questions, they don’t really respond with direct answers. They follow their script and they tell you things that sound great. They would often tell me that I could cut my debt in half, but they couldn’t give me many detailed specifics about how the program would work or what a fee structure would look like.”

White surmised in a report that was released in April that: “Instead of getting the promised services, consumers typically end up with less money, more debt, a worse credit score, and dwindling options.”

In April of this year, the U.S. Government Accountability Office also asked investigators to contact twenty companies posing as potential customers. The GAO report states it discovered “fraudulent, abusive and deceptive practices . . . such as claiming unusually high success rates for their programs-as high as one hundred percent.” The report concludes that FTC and state investigations have typically found that less than ten percent of the clients successfully complete these programs. Obviously, this practice is unacceptable. Possible solutions will be discussed in the next blog.

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.