Bankruptcy Alternative Scams, Debt Consolidation?
By Kurt O'Keefe, Attorney at Law on Sep 9, 2007 in General Bankruptcy Information
I had a call this week from an honest, church going woman, who had been sending money to a couple of companies like this one, who tell people with credit card problems about their amazing solutions to debt problems. You have heard the ads, must owe $10,000 or more to qualify, reduce your credit card debt 60%, ya da ya da ya da.
In spite of having sent money to these entities for all of 2007, she was still sued by one of her creditors. All of the people she spoke to on the phone were so nice, they told her they had made deals for every single creditor of every single person who hired them .
Of course, they will not commit to that in writing. Usually, the first money you pay goes to their fees, and they say, well, we cannot begin to negotiate with your creditors until you send us a large sum, which may take years to accumulate at the payments you can afford, while the interest on the unpaid debt continues to increase the amount you owe.
Yes, I am a bankruptcy attorney. But my website is not deceptive like the one linked above.
I did not review all of Credit Solutions site.
I did view the story connected to the link advertised as : “Featured on NBC”
It is not NBC. It is the Dallas affiliate of NBC.
The story is completely false.
It states that the new bankruptcy laws require higher credit card payments. False.
That it is “nearly impossible” to file bankruptcy now. False.
Another link on the site connects to J. D. Power, as if that firm endorses their credit negotiation service.
It does not. It rated their call center for service.
These scam outfits emphasize that you avoid attorneys.
The fact is, there is nothing that they do that you cannot do for yourself, for free.
Consult an attorney before you sign a contract with any of these outfits.
If it sounds too good to be true, it usually is.
If you liked that post, then try these...
Will My Creditor Renegotiate My Debt If I Threaten To File For Bankruptcy? by Kevin Gipson, New Orleans Bankruptcy Attorney
What Is a Short Sale? by Douglas Jacobs, California Bankruptcy Attorney
Why Does My Trustee Payment Go to an Address in Another State? by Däna Wilkinson, Attorney at Law
You must be logged in to post a comment.