When Is It Alright To Give A Debt Reduction Company Your Bank Account Number?

When Is It Alright To Give A Debt Reduction Company Your Bank Account Number?

The simple answer is never!

While I am sure they are out there, I have yet to find a debt reduction company that had the best interest of their “clients” at heart.

While they claim that they will help to reduce your interest rates and help consolidate your debt, the reality seems to be that their goal is to obtain as much money on the front end as possible, often leaving the client with a worse financial situation.

A case in point.

A client recently came to me and told me that a debt reduction company contacted him to discuss reducing his debt.  They said that before they could do anything he needed to provide them with a checking account number.  The client was assured that the company would not take any funds from his account until such time as he signed an agreement with them to assist him.

Of course, you already know the rest of the story.

Client discovers that the debt reduction company had deducted over $500.00 from his checking account.

Remember that the people contacting you from a debt reduction company are not financial counselors, they are salespeople.

They have been trained to make the sale and close the deal.  They have an answer to every objection you may have before you make it.

If you decide that you want to consider debt reduction as an option don’t simply wait for a salesperson to call you.

Do some investigation.  Contact the Better Business Bureau and maybe your state attorney general’s office.

Finally, be suspicious of anyone who calls you and either asks for a bank account number or money from you in order to help you with your debt.

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