BEWARE: CONSUMER DEBT RELIEF COMPANY COMPLAINTS AND SCAMS

Many Americans are in debt and the amount of consumer debt in the U.S. is approaching an enormous number. With that being said, many people are turning to consumer debt relief or consumer debt management services in an attempt to get out of debt. Almost all of these companies offer guarantees to lower your interest rates, which will lower your monthly payments on your credit cards. However, what these companies don’t tell you is that there is next to no governmental oversight and no federal regulations concerning debt relief or debt management services.

It is important to know that some of these consumer debt relief or debt management programs are run by scam artists that can’t and won’t deliver on their promises and guarantees. In the end, you may find yourself in a worse financial situation, and you may lose hundreds or even thousands of dollars to these scam services. Moreover, the contact that you sign with most consumer debt relief or debt management companies will explicitly state that they don’t and won’t provide you with legal representation, which can end up being a tremendous issue in the long run.

In 2008, a close friend of mine was laid off from his job. Soon, his home was on the brink of foreclosure. He contacted what he thought was a legitimate and reputable consumer debt relief company. He spoke with individuals at the company who seemed professional, and he received a packet of information from the company that was printed on professional letterhead.

The guarantee that he received from the company was that if he gave them $1,500.00, they would be able to help him save his home from sheriff’s sale and would be able to work with the bank to stop the foreclosure process. He paid the consumer debt relief company $1,500.00; however, to his dismay, nothing happened. The bank continued to call demanding payment, the sheriff’s sale was still scheduled, and he was still in danger of losing his home to foreclosure.

He frantically attempted to contact the consumer debt relief company who now had his $1,500.00, which he could have used to pay the bank directly; however, the phone number was disconnected. He soon found out that he was scammed, that he lost $1,500.00, and that he was about to lose his home to foreclosure.

If you are in debt and are contemplating contacting a consumer debt relief or consumer debt management company, be aware that there are many scam artists and scams out there. Moreover, if you are in debt, bankruptcy may be your best option. Depending on the situation, you may be able to keep your home and your vehicles. You may be able to get a “fresh start” and be able to walk away from your unsecured debt.

Don’t allow yourself to get scammed! Contact the Law Office of Jason P. Provinzano, LLC for a free consultation, so that experienced attorneys can answer your questions and concerns about consumer debt relief and debt management companies, assess your situation, and determine whether or not bankruptcy is right for you.