credit counseling scams
Date: Sat, 12/09/2006 - 09:39
I've heard horror stories of people paying a credit counselor to take care of their debts, only to have the credit counselor ignore the debts, pocket the money, then run when the questions started.
It seems like there are tons of crooks out there that are just looking for uninformed, desperate people to take advantage of.
What is the easiest way to determine who is trustworthy in this line of business?
H&J
BBB reports
Is the lack of complaints the best way to judge these companies? I mean, don't the unsavory companies often change their names, or "re-organize" to appear as a new company?
Are there any other watchdogs or agencies which keep an eye on these types of companies?
H&J
It's very difficult for companies to simply change names and dis
It's very difficult for companies to simply change names and distance themselves from their past. Most of the time, the BBB will report some of the past actions of its company or its agents. In general, however, you will find that many companies have cleaned up since the Ameridebt days. If not, their BBB record will definitely report it. I haven't seen an example yet in which a company was able to escape a shady past, re-organize, and continue their practices without any sort of relief for consumers. Remember that many times a company will change their practices as well, so judging them by their previous affiliations is not often the best measure.
You best advice is to look around, be cautious, and check the BBB>
You are right! Always be pro-active Since you are so cautious
You are right! Always be pro-active
Since you are so cautious and don't want to end up hiring a wrong company for taking care of your debts, why not you only start negotiating with your creditors and see if they can offer you better packages. The consolidation company will be doing nothing different. It's just that they handle many files every month and are tactful in their negotiations with the creditors. If you can ask your creditor to prepare a suitable payment plan, debt consolidation company won't be needed in your case. You will be able to take care of the accounts on your own and have a good relation with your creditors.
I have mixed feelings about using BBB on company information. R
I have mixed feelings about using BBB on company information. Read their reports carefully. If you do a search using BBB, the link provided will go to the local BBB. For example if you look up Rio Resources, you will get 3 or 4 links depending on the address in the BBB system. Clicking on one link will take you to a Rio address in New Mexico, while another link will take you to the OK address. If the local site is good, then you will get alot of information, but if the local is average, then you are at a lost. I also noticed that some local sites are better about following up on complaints than others. Also some local sites will post a summary of complaints, which will show you how well the companies handle complaints and the type of complaints.
If you are looking for another site to tell you about people's experience with a particular company try ripoffreport.com