Fees for Debt Settlement Illegal in Kansas – Demand Your Money Back!

09 Dec Fees for Debt Settlement Illegal in Kansas – Demand Your Money Back!

Consumers desperate to find a way to resolve their debt problems some times resort to illegal services advertising on the internet and television who promise to manage or settle their debts. Increasingly, we are able to get the consumer’s money back.

CONSUMER BEWARE: Debt management is ILLEGAL in Kansas unless the company you are dealing with is licensed by the Office of the Kansas Bank Commissioner. Most are not. Only 32 companies are authorized to engage in debt management services with Kansas consumers. See the current list of approved credit service organizations in Kansas.

Debt management is taking money from a Kansas consumer to pay his debts to his creditors; offering to improve a Kansas consumer’s credit history or rating; or negotiating to defer or reduce a Kansas consumer’s debts.

It is illegal to charge you fees to take your money, hold the money in escrow, not pay your creditors, then, once the debts are unpaid and delinquent for months, offer your creditors a partial lump sum settlement of the debt. THIS IS A DEBT SETTLEMENT SCAM!

If you have been caught up in a debt settlement scam, all may not be lost. Seek the assistance of a Kansas attorney to revoke in writing the authority you have previously given the company to automatically withdraw funds from your bank account by ACH transaction or otherwise, and to demand your money back.

Kansas law requires a refund within 10 days if you rescind the debt management services agreement. Lately, the threat to report the illegal company to the Kansas Bank Commissioner has resulted in refunds to a number of clients.

It is a consumer protection violation and unlawful deceptive practice to violate the Kansas Credit Services Organization Act, which protects all Kansas consumers regardless of where the violator is located, even if done over the telephone or internet from out of state. Violators can be fined, enjoined and criminally prosecuted. Consumers may sue violators and get damages, punitive damages and attorneys fees.

A Kansas attorney may represent you in legitimate debt settlement agreements with your creditors if that is the appropriate way for you to resolve your debts.

You may find the Credit Services Organizations Act in the Kansas statutes at K.S.A. 50-1116 through 50-1135, and amendments thereto.

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Jill Michaux has helped Kansas consumers with debt problems for three decades. She and her partner, Mark Neis, are Topeka's only bankruptcy specialists, board certified in consumer bankruptcy law by the American Board of Certification. She help start the National Association of Consumer Bankruptcy Attorneys.
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