Some Debt Consolidation Services May Commit Fraud

Debt consolidation agencies offer so many benefits, it is hard to understand why anybody would want to sully the institution. It is often the very desperation that drives those seeking relief that makes it so easy to dupe them out of their already-scarce cash.Too Good to Be TrueThese economically troubled times have seen more and more consumers get dragged into insurmountable debt. Folks end up borrowing from one source to pay off another and, of course, the debt just keeps snowballing. This can ultimately lead to bankruptcy, always a bad outcome. Following the lead of a debt consolidation or management service is a good option for many to rid themselves of onerous debt. These agencies can consolidate your bad loans, negotiate settlements, help you ward off bankruptcy, and even dust up your negative credit history. All of this may indeed sound too good to be true, but it is not - unless you fall into the clutches of a disreputable organization.Big Problem - Disingenuous Debt Consolidation ServicesSome great programs offered by excellent debt consolidation services are out there. If the guidance they offer is followed, they can bring dramatic and significant change to your financial troubles. However, there are many companies who make big promises just so the can extract big fees from their clients who are in big debt. In spite of the fraud, there is often little a consumer can do if the service does not keep its side of the contract. Certain signs are a tip-off as to the reliability of a debt service company you may be deciding to employ.Better Business BureauThese folks have been around for so long, they may be considered a joke by some. But they have been around so long because they do a pretty good job of pushing reputable businesses while exposing fraudulent ones. Checking BBB ratings will give you ratings as well as feedback to give you some idea of how they have treated past customers.Federal Trade Commission Has New RulesAside from the BBB, there are agencies who have been examined by various state governments and these are rated or approved. If the service you are considering is not listed on these approved lists, consider taking your business elsewhere. Also, in an effort to upgrade protection for citizens in these turbid times, it has been ruled that debt consolidation services or agencies cannot collect fees until after a debt problem has been settled. If your problem has not been fixed, do not pay and find another company.Non-Profit Could Mean Non-HelpfulAny firm can claim to be a non-profit organization, whether or not they actually are is another matter. Check their status thoroughly before contracting them. Many non-profits, or those who claim to be, can charge rather hefty fees. Make sure you scrutinize their fee schedule and what you can expect in return. Debt Consolidation services can be an excellent way to bring your finances under control. It is up to you to be sure the ones you consider have a good record of delivery on promises.